A Project Report on

Reconciliation and Wastage reduction of raw materials during value addition process at Henkel

Teroson India Ltd.

Prakirn Gupta Roll No. 9811204454

Under the guidance of

Mr. Pramod Bawa, GM Henkel Teroson India Ltd

Gurgaon

Institute of Management Technology Ghaziabad

2

PROFORMA

NAME : PRAKIRN GUPTA

ROLL No. : 0811001951

PERMANENT ADDRESS :

929, LAXMAN VIHAR, PHASE - II

GURGAON – 122001

Contact No. 9811204454

E mail ID : prakirng@yahoo.co.in

DESIGNATION AND OFFICE ADDRESS :

MANAGER - PURCHASE

PEARL POLYMERS LTD

PLOT- 2A, SECTOR - 18

GURGAON - 122001

NAME, DESIGNATION AND ADDRESS OF GUIDE :

Mr. PRAMOD BAWA, GM,

HENKEL TEROSON INDIA LTD,

74, IDC, MEHRAULI ROAD

GURGAON - 122001

3

TABLE OF CONTENTS

Chapters Page No.

Acknowledgement 5

1. Introduction :

a. Problem Introduction 7

b. Objectives of the study 9

c. Scope of the study 11

d. Methodology 13

e. Limitations of the study 15

2. Existing Systems

a. System for Incoming Raw Material Inward 18

b. Unloading process for liquid materials 22

c. Production Methods 24

d. Store & Machine Layouts 25

3. Research methodology

a. Research Methodology 27

b. Data Collection 38

4

4. Literature Review

a. Material Mass Balancing 57

b. Value Stream Mapping 66

c. Tools and Techniques of Data Analysis 70

5. Data Analysis

a. Data collected through Questionnaire 75

b. Data Analysis 90

6. Conclusion & recommendation 104

7. Company Profile 110

References / Bibliography 113

5

ACKNOWLEDGEMENT

I am glad to express my heartiest appreciation to

all those with whom I worked / interacted and whose thoughts

and insight helped me to enhance my knowledge and

understanding of the project study.

First of all, I will express my gratitude to Mr.

Pramod Bawa, my project guide for guiding and keeping me on

the right track during the project. I would also like to thank

people, factors and situations who contributed to the successful

accomplishment of the task. Though I am unable to mention all

of them individually, my depth of gratitude to them is no less.

I bear the sole responsibility in case of

shortcomings, if any.

prakirn gupta

6

CHAPTER – I

INTRODUCTION

a. Problem Introduction :

7

Working title of this project is “Reconciliation and

wastage reduction of raw materials during value addition process”. It has

been under taken at 74, IDC plant , one of Production Unit of Henkel

Teroson India Ltd (HTIL) out of five manufacturing locations in India. In

the beginning, it is necessary to provide, information regarding nature of

work carried out in the organization.

Henkel Teroson (HTIL) is manufacturing around 180 different kind of

Automotive Sealants and Adhesive products for which at least 400

different kind of raw materials are used. 50% of raw material is sourced

from within the country whereas 50 % of inbound materials are imported

only from Henkel‟s globally approved suppliers. Huge quantity of

imported materials forces HTIL to keep sufficient amount of inventory.

On the other HTIL has to supply finished goods on the concept of Just-

in-time for which production has to schedule in such a way that product

shortage doesn‟t occur to avoid any production line stoppage at

customer end.

Material reconciliation has been little difficult. There are thoughts of

material wastage during the process of value addition as well.

The biggest problem however is of severe space crunch. Henkel

Teroson (HTIL) at Gurgaon has two plants by the name of 74 IDC and

64 IDC.

74 IDC has total floor area of 9234 Sqr.ft. and 64 IDC has total floor

area of 6963 Sqr ft. (Floor plans attached).

8

The present existing process on Material reconciliation is little difficult

due to space crunch and hence is a complicated one. There are various

thoughts of material wastage during the process of value addition.

9

b. Objectives of the Study :

Proper control over raw materials, intermediate products, final products

and the associated waste streams are now being recognized by industry

as an important waste reduction technique. In many cases waste is just

out-of-date, off-specification, contaminated, or unnecessary raw

materials. The cost of disposing of these materials not only includes the

actual disposal costs but also the cost of the low cost raw materials or

product. There are two basic aspects to inventory management:

controlling the types and quantities of materials in the plant inventory;

and controlling the handling of raw materials, along with the finished

products and waste streams in the production facility.

The former aspect, referred to as inventory control, includes

techniques to reduce inventory size and hazardous chemical use while

increasing inventory turnover. The latter aspect, referred to as material

controls, includes methods to reduce raw material and finished product

loss and damage during handling, production, and storage. Handling

waste as if it were a product helps reducing waste and increasing the

potential for recovery.

The project objective is to study the material flow and institute material

wastage during the value addition process, finding out reasons for the

same, tracking reasons for difficulties in material reconciliation and

formulating plans for improving the existing system.

10

Project objectives:

To study the material flow and institute material wastage during

the value addition process.

To find out the reasons for the same, tracking reasons for

difficulties in material reconciliation and formulating plans for

improving the existing system.

To optimize individual and group efforts for minimization in

wastage and to achieving the organizational goals efficiently

and effectively by cost savings.

Here the objective of this project is to reengineering the

existing value addition process to reduce wastage of Raw Materials

during the Value Addition Processes and to have better control on

inventory management.

11

c. Scope of the Study :

The scope of the study is in problem solving process in manufacturing

companies and that too specially in fast growing Automobile sector. In

Automobile companies in addition to the Original Equipment

Manufacturer (OEMs) there are huge set up of components

manufactures. The overall turnover of Henkel (Components

manufactures) is greater even than the certain OEMs.

In order to achieve objectivity, it is necessary to Understand :

The existing system for Inward Raw Materials.

Lay out of Present Raw Material Stores.

Manufacturing Lines and Machines

Modification in work operations and any corrective action

suggestion.

Checking for continuous improvement.

First of all , There is a immense need to Understand, the Working

Environment In which whole store functions and method of usage of

Raw Materials as input.

Data are collected through observation method, interviewing

method and questionnaires method. Direct observation method is used

to understand the existing process. The personal interview with Middle

Management, Shift Supervisors, Maintenance Incharge, Store Incharge ,

Security Guards and Work Force has been carried out. The data

sources of the organization was also studied. This personal interviews

12

and internal data sources study provided a clear idea regarding current

Waste level and System of raw material inward.

In order to understand the customers actual requirements and

level of satisfaction questionnaires method is used. These

questionnaires were given to different workers in all the three shifts. After

receiving the responses those are thoroughly analyzed. A feedback

control system has been developed. This feedback system continuously

compares output of new changes and clients satisfaction level achieved

with standards. If the standards are not achieved then corrective

measures are to be carried out. In case the requirements are achieved a

slightly higher than standards, they are fixed as our aim is to achieve

these standards. Thus, it ensures the continuous improvement.

The studies show that the highest attrition is found in the Work Force

and Supervisory categories. The Supervisory and workers categories

experience lesser attritions. Hence the scope of the study was designed

to concentrate on that particular segment of higher attrition. This

segments includes the Workers and Supervisors who are generally

employed in Store and working on Machines in all the three Shifts.

13

d. Methodology :

Methodology is the specification of the method for acquiring the

information needed to structure the study.

There are Some basic strategies to minimize wastes are as follows:

Inventory management

Inventory control

Material control

Production process modification

Operation and maintenance procedures

Material change

Process equipment modification

Volume reduction

Source segregation

Concentration

Recovery

On-Site recovery

Off-Site recovery

Proper control over raw materials, intermediate products, final products

and the associated waste streams are not being recognized properly at

Henkel India (HTIL) as an important waste reduction technique. There

are two basic aspects to inventory management: controlling the types

and quantities of materials in the plant inventory; and controlling the

handling of raw materials, along with the finished products and waste

streams in the production facility.

14

To apply these strategies following techniques were identified for this

project to successfully minimization of Waste through production process

modifications.

1. Mass flow balancing

2. Value Stream mapping

3. ABC analysis

4. Theories of Total quality management.

15

e. Limitations of the Study :

Following Limitations were observed while study carrying out on the

project :

1. Lack of time: - Mass flow balancing technique require process

sequencing and continuous time bound studies on a particular chosen

batch till the batch production is completed (End of Batch cycle time).

There are approximately 200 Nos. of Finished goods, which HTIL make

to feed OEMs monthly requirements. Out of these, Approx. 80 Nos.

products are regular in demand as well as in regular production. These

80 Nos. regular finished goods comprises 65 % of the volume of total

monthly production. Since my self is employed and It was not possible

for me to exercise Mass Flow Balancing and Value stream mapping

study on each & every finished products. Hence as a sample, certain

regular finished products were selected to conduct the studies..

2. Since HTIL is using approximately 400 Nos types of Indian and

Imported raw materials. Hence this Study could not be conducted on all

the raw materials / products, hence random FG products were selected

for the study. Various Raw materials are common in usage.

3. It is a general phenomenon, due to casual attitude of people working

at lower ranks, it is very hard to get informations from them.

Respondent‟s lack of time and unwillingness to give information due to

their casual attitude was a big hindrance in the study.

As this project is limited to Gurgaon, its findings can‟t be taken as the

findings for other Henkel plants in the India because other plants are

16

newer than Gurgaon Plants with advanced machines (Blenders etc)

and equipments. The other plants have different kinds of machines with

extra capacities than Machines available with Gurgaon Plants. Hence

studies carried out in Gurgaon can not be co-related with the other

HTIL‟s plants in India.

17

CHAPTER – II

EXISTING SYSTEMS

18

a. System for Incoming Raw Material Inward

In this chapter, I have discussed the existing process for incoming Raw

materials into Store. This process has different procedures for incoming

Powder and liquid raw materials.

As I have mentioned earlier that Henkel Teroson (HTIL) is manufacturing

around 180 different kind of Automotive Sealants and Adhesive products

for which at least 400 different kind of raw materials are used. 50% of

raw material is sourced from within the country whereas 50 % of inbound

materials are imported only from Henkel‟s globally approved suppliers.

Huge quantity of imported materials forces HTIL to keep sufficient

amount of inventory.

The biggest problem however is of severe space crunch. 74 IDC has

total floor area of 9234 Sqr.ft. and 64 IDC has total floor area of 6963

Sqr ft. (Floor plans attached in the last of this chapter). Monthly

inventory level is Approx. 750 MT. Owing to space constraints ,

maintaining of store activities, reconciliation of stock is little difficult

work.

The procedure for accepting Imported in-warding raw materials is

different then Indian raw materials. And raw material accepting criteria

for bulk materials and liquids bulk materials are different than small

items.

Certain Imported items are very old and their past quality record are

good and these certain items are declared as self certified and used

without any pre quality testing. While various bulk and fast consuming

19

Indian items are unloaded after sample testing and approval of quality

tests. For Example –Plasticizers like DOP/ DINP/ Exxsol D 80 etc.

Certain Materials are unloaded without testing but are used only after

getting the sample testing and quality validation. In such materials

quality testing lead time is 3 – 5 days. Small pilot batches are made,

results are validated before approving the quality standards. For

Example – Neo light SP etc.

The whole process is summarized in below steps.

Step – 1 : The Raw Material is received at receive reported by Security

Guard.

Step –II : Store Officer checks whether all the raw materials are

available as per the Purchase order and material is unloaded in the “

Material under Testing Area”

Step – III : Random Sampling is done as per the sampling plan. Sample

is sent to QC department for Quality testing with Sample Requisition

Slip.

Step – IV : The Quality Assurance Department checks the Physical &

Chemical properties of sample material as per the methods and

generates the test report for Quality Approval or non Approval.

Step – V : In case of Quality Approval, material is shifted to OK Store

for production purpose.

20

Step – VI : In case of Non quality approval, Supplier is intimated and whole

rejected lot is sent back to Supplier.

Step – VII : Fresh material is received and whole procedure Step 1 to VI is

repeated.

Step – VIII: Due to bulk materials and space constraints, Store Areas are open

and are available at different locations. Hence these store can not be put into

Lock.

Step – VIII : Whenever required, Production department issues the Production

plan and Material requisition slip to Store and store issue the materials by

updating their store records.

21

Flow Chart :

No

Yes

Quality officer

carries out Physical

& Chemical test

Material is shifted to

Store , Store records

are updated

Sent back to

Supplier

If Result

Satisfacto

ry

Material are

unloaded into Under

Testing Area and

sampling is done

Physical Condition

and Quantities are

verified from P.O.

22

b. Unloading process for Liquid Materials Tankers :

The Unloading Process for Liquid Plasticizers materials are summarized

below : (See the flow Chart also)

1. Bulk Plasticizers are transported by suppliers through 16 MT or

20 MT tankers

2. On the arrival of Tanker, Physical checking of tankers is

thoroughly carried out for any leakage of discharging valves, any

mal practice by tanker drivers in Transit. Sealed broken or Intact

etc.

3. Sampling of plasticizers is done from each cuppa of tankers by

removing initial 20 – 25 lts plasticizers, to avoid any moisture,

rust , dust within pipe line.

4. Tanker is moved to two nos. local weighing balances in the

custody of Store officer and Security Guard.

5. Dip measurement is carried out for the existing storage tankers

by dip rods to measure current stock available in empty storage

underground or overhead tanks.

6. Meanwhile Quality Test Report is received from QC. In quality Ok

condition, Discharging Flange are fitted on discharging vales of

tankers.

23

7. Motor fitted flexible plastic pipes are fitted connecting to Tankers

flange and mouth of empty tanker through flame proof electrical

motor. And motion tanker is unloaded into the empty tanks.

8. After emptification of Tanker, emptification is verified by

searching inside the tanker through Torch light and quantity

unloaded is verified by dip measuring of filled under ground

or over head tanks in the presence of Store officer. In dip

measurement, previous dip measured quantity is reduced.

9. Again, empty tanker is weighed in the custody of Store officer

and Security Guard at destine two previous weighing balances.

10. Average Weight (In Kgs) of said plasticizer of weighment slips

are verified with cross checking of supplier‟s invoiced quantity.

only 0.5 % shortage due to transportation loss is accepted as

quantity received as full for commercial purpose only while for

inventory purpose actual quantity received is recorded into

inventory stocks.

11. Empty tankers are released to return to supplier after weight

verification.

12. Now the said plasticizer is available for use to production

department. It is issued to production (in Kgs.) on the material

requisition slips (MRS Slips) received from production.

13. Here it is found there is no control of Store in issuing the liquid

plasticizers to production. The production department has control

24

over it and they use or can manipulate the quantity what ever

they are doing. This is the grey area of possible wastage.

c. Production Methods :

Since Sealants are of two types :

1. PVC Based

2. Mastic (Rubber) Based

For both types of Sealants different types of machines are used. These

are :

1. Blender # 1 ( HT # 1) Capacity 4 MT

2. Blender # 2 (HT # 2) , Capacity 4 MT

3. Double Planetary Mixer (DPM), Capacity 1 MT

4. RAM Press for Discharging

5. Double Planetary Mixer (DPM), Capacity 400 Kgs

6. RAM Press for Discharging

7. Sigma Mixer Capacity 500 Kgs

8. Sigma Mixer Capacity 300 Kgs

9. Kneader Mixer Capacity 300 Kgs

10. Triple Roll Mill (TRM)

11. Mahale Filters

12. Static Filters

13. Churners.

25

PVC Based sealants are made in PVC Blenders and Double Planetary

mixers while Mastic sealants are made in Sigma mixers and kneader etc

RAM Press , Triple Roll Mill are supporting units..

Both Sealants are manufactured by the application of Blending

technique. In blending technique, is a chemical processing technique in

which various ingredients are combined in such proportions as to give a

product of some desired composition.

The overall production method for the both types of sealants are same,

Blending operations are performed under vacuum at ambient temp ( <

30 oC) at high speed.

d. Store & Machines Layouts :

Following Layouts are attached for Store. Since Henkel store approx

750 MT inventory in more than 400 Nos Raw materials hence large

space are occupied by store which are very congested. Layouts are

self explanatory.

1. Layout of Liquid Raw Material Area ( 74 IDC, Ground Floor)

2. Layout of raw Material Store (74 IDC, Ist Floor)

3. Layout of Raw Material Store for Racks (74 IDC 2nd Floor)

4. Layout of Liquid Raw Material Area ( 64 IDC)

5. Layout of raw Material Store, Bags (64 IDC)

6. Layout of raw Material Store (64 IDC, AC Room I)

7. Layout of raw Material Store (64 IDC, AC Room II)

8. Layout of DPM and RAM Press

26

CHAPTER – III

RESEARCH METHODOLGY

27

a. Research Methodology

The term waste minimization means the reduction, to the extent feasible,

of waste that is generated prior to treatment, storage, or disposal of the

waste. Industrial waste minimization technologies include source

reduction, pollution prevention, recovery, and reuse. Application of

technologies that decreases waste percentage per unit production and

increase in Raw material chemical dosage, improve efficiency. Of the

industrial waste minimization processes carried out in Henkel Teroson

plants, source reduction is usually the lowest cost alternative, particularly

for improving management and production process.

Data have been collected through observation, personal interviews and

questionnaires methods from internal sources. Primary data are those

collected specifically by or for, the data user for a definite purpose. There

is intervening party to summarize the original data. As the original data

from each unit or respondent are available, they can be re-tabulated or

reanalyzed in as many different ways as choose. Primary data can be

tailored to needs. In this case, data are primary in nature. Data have also

been collected from internal resources of organisation.

It is possible to classify questionnaires studies on a variety of

bases. Three such bases, which are of importance, are :

(a) The degree to which questionnaires is formalized or

structured.

(b) The disguise or lack of disguise of the objectives of

questionnaires.

(c) The communication method used.

28

Questionnaires studies can be conducted either with or without

formal lists of questions. When no formal questionnaires is used,

interviewer adapt either questioning to each interviewee as it progresses

or perhaps elicit responses by indirect methods, such as sowing pictures

on which the respondent comments. The process of following a

prescribed sequence of specific questions is referred to, as structure

study while other is non-structure. Questionnaires can be constructed so

that objectives clear to the respondent, or they can be constructed so as

to distinguish the objective.

When information to be collected by asking questions to people

who may have the desired data, a standardized form called

questionnaire is prepared. The questionnaire is a list of questions to be

asked to respondents. Each question is worded exactly as it is to be

asked and the questions are listed in an established sequence.

Questionnaire construction is still much more of an art than a

science. Questionnaire construction is basically a nine step procedures.

These nine steps are as follows :

(i) Decide what information is wanted.

(ii) Decide what type of questionnaires (Personal interview, mail,

telephone)

(iii) Decide on the content of individual question.

(iv) Decide on type of question.

(v) Decide on wording of question.

(vi) Decide on sequence of questions.

(vii) Determine form layout and method of questionnaire

reproduction.

29

(viii) Make a preliminary draft and present it.

(ix) Revise and prepare the final questionnaires.

Type of questionnaire used : This above discussion gives a brief

idea regarding classification questionnaires and method to be used for

eliciting information from customers. The aim is to measure satisfaction

level of customer.

In order to elicit information from Workers and Supervisors

structured, disguise and multiple-choice questionnaires is

formulated. Further, in order to formulate these questionnaires

necessary attention is given to nine steps as mentioned above.

Type of Communication : These different methods of communication

with questionnaire are available :

(i) Personal interview

(ii) Telephone

(iii) Mail

In this case, Telephone & mail survey method is not applicable .

Mail survey method is used where a vast area is required to cover and a

huge number of customers are taken for consideration. In mail survey

method there is no interviewer to explain the purpose of study, to ask the

questions, to record the answers and in general to cope with the

problems. Mail surveys are particularly versatile in reaching all type of

people, in different geographical area, in urban or rural areas at the

same cost.

30

Thus, from above discussion it can be written in brief :

Type of questionnaires : Structured, disguised,

multiple choice.

Type of communication : Personal Interview.

A copy of questionnaires is given below :

QUESTIONNAIRE

Please Tick ( √ ) the Right Answer

1. Do you check the conditions of Mixers and In process equipments before batch

starting. Water Leakage from Jacket of Mixer, Vacuum air Leakage from Discharge

Valve and from Rubber Gasket will increase the moisture in batch and hence batch

may be rejected.

Every Once On Problem

Batch a day Existence

2. Do you check & confirm the standard packing size weight of raw materials bags

before charging into mixers . Weight of Raw Materials bags may varies..

Every Every Random

bag batch lot Selection

3 Do you verify the Liquid & Powder raw material’s cans / bags emptied completely

during or after raw materials charging into mixers.

Yes No Randomly

4. Super 40 is Exothermic, it is used in all finished goods to repel moisture from batches

during process. Presence of moisture in batch will increase poor Bonding and hence

there are chances of Rejection of batch or Reprocess of batch. To avoid moisture , Do

you Check the exothermic property of Super 40 ( > 1200C) before addition into each

batches.

31

Every Lot Randomly

Time Wise

5. Do all In-process machines & testing equipments like Weighing Machines, Vacuum

Gauge , Oven’s Thermometers , Glass Thermometers are get calibrated periodically.

Yes No Not Known

6. In-Process Temperature of the running batch is kept under control during batch

processing as per batch process standards (Standard Manufacturing Process).

Processing of PVC at more than 300C will tends to Gelation on Batches.

Yes No Not Aware

7. During Filtration, On filter Choking, do you bypass the filtration process. Unfiltered

material will be rejected at customer site.

Never Slightly Frequently

8. Preventive Maintenance schedule is followed to avoid Water Jacket leakage, Vacuum

machine failure, Torn of Gear boxes of High speed mixers, Non Functioning of

Weighing Balances .

Strictly On demand Never

9. Are all the Incoming Raw Material tested as per Standard Quality Test methods

at the time of receiving.

Random

Completely Partially Selection

10. What Happened when such a Raw materials is found of sub quality standard.

Rejected and Used under Alternative

Returned to supplier Deviation RM is Used

32

11. What are the In-Job Training schedule.

Monthly Half Y’ly Quarterly

THANKS FOR THE YOUR CO-OPERATION.

Measurement of response rate : It is very important to determine

response rate of Questionnaire. Response rate may be defined, as

number of completed questionnaire received divided by number of

participated workers.

However, in our case I have selected all the workers in all the

three shifts. i.e 35 workers, which are working on Double Planetary

Mixers (DPM), PVC Blenders, Sigma Mixers, Triple roll mills and RAM

press machines, these are eligible to response through questionnaire. In

order to determine response rate to questionnaire, following table is

useful :

Eligible Non-Eligible Response Obtained Non Response

35 0 29 6

From the table it is clear that out of 35 workers 29 workers responded to

the questionnaires and 6 workers did not response to it. Hence,

33

29

Response rate = -------- X 100% = 82.86 %

35

The response can be reflected in the pie chart as given below :

Figure 3.1

Personal Interview : In order to obtain crucial information, personal

interview with Maintenance Engineers, Personal Manager, Shift

Supervisors, Store In-charge, Store officer and Workers working in Store

has been conducted. Personal interview is a method of data collection

where face-to-face contact with person from whom information is to be

obtained occurs.

However, personal interview can be classified according to their

basic characteristic as given :

No Resonse

17.14 %

Response Response

82.86%

34

CLASSIFICATION OF PERSONAL INTERVIEWS

Personal Interviews

Formal Interview Informal Interview

Fig : 3.2

In formal interview, the interviewer presents a set of well defined

questions and notes down the answers of informants in accordance with

prescribed rules. Here, emphasis is given on the order and sequence of

questions. In informal interview the interviewees has the freedom of

alternations of questions to suit a particular situation. Questions may be

recorded, revised or rephrased to suit the needs of respondents.

Thus from above discussion it can written interview conducted is

basically informal interview. However, during this interview following

rules were observed as :

Allowed maximum opportunity of self-expression to the

interviewee.

It was a free and frank interview.

Interviewee was heard with full interest.

During personal interview some useful information were obtained.

Information obtained regarding are listed as follows :

35

Personal Department

Actual Man-hours working against Standard man-hours permitted

for their job duties.

Working on Over Time duty and reasons (in this case interviewee

took help of internal data base)

Work package.

Job retentions ratio.

Population Ratio.

Maintenance Department

No. of Machine Brake down, severity of Brake Down (in this case

interviewee took help of internal data base)

Specified machines which goes under Brake down. (interviewee

took help of internal data base)

Specific reasons for Brake Down. And time period in which

machine get repaired. Any corrective action Taken in past.

Equipments Calibration cycle and past History. (in this case

interviewee took help of internal data base)

Available technicians / engineers in last five years.

Preventive Maintenance schedule.

Production Department

Production level of last five years (in this case interviewee took

help of internal data base)

In Job training and Skilled Matrix.

36

Basic Education level.

Awareness about Finished Goods and Raw Materials Properties

Awareness about handling of Raw Materials.

Awareness about machines operations.

Precautions about raw materials and machines.

Raw materials consumptions record and entries into system

(interviewee took help of internal data base)

Store Department

Awareness about Finished Goods and Raw Materials Properties.

Raw materials Handling methods for safety purpose.

Raw materials storage norms and storing conditions.

Inventory Levels. (interviewee took help of internal data base)

Raw materials procuring lead times. (interviewee took help of

internal data base)

Medical First Aid awareness.

Efforts on RM wastage minimizations.

Raw Materials Receipt and Issuing activities. (interviewee took

help of internal data base)

JIT etc..

Observation Method : Observation is the process of recognizing and

noting people, objects and occurrence rather than asking for information.

This is the most commonly used method of data collection aspect in

studies relating to production management and behavioral sciences.

Accurate watching and noting down phenomenon, as they occur in

37

nature or at shop floor with regard to cause and effect, is called the

observation method of data collection. In this case, direct observations of

the overall process have been made.

This direct observations was done to collect following data :

To identify what Workers , technician , Shift Supervisors are

actually doing in workshop.

How much time technicians spend effectively on working

equipments.

What is the actual time required for completion of various

operating steps in the process.

Time spend in between operating steps for value stream mapping.

Total activities time and process time ratio.

Time spend effectively on equipment as a percentage of total

process time.

What are the raw materials storing conditions and how material

reconciliation activities are being carried out.

Raw Materials Inward system and finished goods outward.

38

b. Data Collection

In this case, at Henkel Teroson, raw Materials are categorized as per

their inherit properties and end usage. See Figure 3.3, Raw materials

are categorized into 9 Nos. of the main categories, in which all the raw

materials are grouped.

Classification of inventory item : The inventory of all categories

of items cannot be determined by using same method. This is because

some of items are consumed very less, some items consumed in very

large quantity and some items consumed in average quantity. Therefore,

ABC analysis is used for inventory items.

ABC analysis : ABC analysis is always used for better stand.

According to this analysis, all the inventory items are divided into three

categories as A type, B type and C type depending on their cost and

quantity of consumption. The differences between these types of items

are summarized below :

CRITERIA A TYPE B TYPE C TYPE

Quantity 10 % 20 % 70 %

Annual Usage 75% 15% 10%

Control Very Strict Moderate Less

Ordering Weekly Bimonthly Yearly

Safety Stock Less High Highest

Figure 3.3 : ABC analysis - RM Categories

39

At, Henkel (HTIL), monthly consumption of raw materials is

approximately 750 metric tone. Below mentioned table, is derived from

ABC Analysis, shows their monthly consumption volume and

percentage contribution as per their groupings. ( Fig. 3.3).

Raw Material

Category

Monthly

consumption (In MT)

Percentage

contribution

Fillers 330 44

Plasticizers & Solvents 210 28

PVC Resins 127.5 17

Adhesion Promoters 30 4

Rubbers 11.25 1.5

Stabilizers 7.5 1

Thixotropic Agents 3.75 0.5

Miscellaneous 30 4

Total 750 100

Figure 3.4 : ABC analysis - RM Categories

Monthly Raw materials consumptions

Fillers

Plasticizers & Solvents

PVC Resins

Adhesion Promoters

Rubbers

Stablizers

Thixotropic Agents

Misc.

Figure 3.5 : Contribution of RM Categories

40

FAMILY : A (Seam sealant, Underbody coating) 1. ANSEAL 123 2. ANSEAL V22 3. TEROLAN 792 I 4. TEROTEX 3558 I 5. TEROTEX 3010 / 100 6. TEROTEX 3041 / 15 7. TEROTEX 3599 / 5 8. TEROLAN 1909 AAIN 9. TEROTEX 3860 10. TEROLAN 4209 / 50S 11. TEROLAN 5955/ TEROLAN 1946 LV 12. TEROLAN 5950 13. TEROLAN 3041/ 16 14. TEROLAN 1946M/ TEROLAN 1946 LV 15. TEROTEX 3599M 16. TEROTEX 6008-272 17. TEROLIN 3558 F 18. TEROLIN 1946 F 19. ANSEAL 125 20. ANSEAL V22D 21. TEROPHONE 4910 AAIN 22. TEROPHONE 4912 AAIN FAMILY : B (MASTICS) ANSEAL V58 H ANSEAL Z73 H ANSEAL Z73 ANSEAL Z71 S ANSEAL Z41 ANSEAL E56 TEROKAL 5027 TEROSTAT 3207 ANSEAL A26 ANSEAL Z55 M ANSEAL V58 M ANSEAL E54 TEROKAL 4520 TEROSTAT 3213 TEROSTAT 3215 FAMILY : C (PUTTY) ANSEAL 124 TST 1163

41

ANSEAL Z800 FAMILY :D (EPOXY ADHESIVE) 1 ANLITE 297 FAMILY : E (RTV SILICONS SEALANTS) ANSEAL S70 FAMILY F (PLASTISOLS) ANCOR 5520 ANCOR 5710 FAMILY H (NON (CURING – 2) 1 ANSEAL B33C 2 ANSEAL B33N FAMILY :I (MASS-BUTYL SEALANT) 1 TEROSTAT 273 FAMILY : J (MASS-NVH PRODUCTS - 1) 3 HSTM 102 ADHESIVE 4 HSTM 301 P 5 HSTM 301 G 6 HSTM 203 H 7 DYNAFIX 7116 FAMILY : K (MASS-NVH PRODUCTS -2) 8 HSTM 102 BLOWING 9 HSTM 451 WIE FAMILY : L (PREFORMED TAPES) TEROSTAT 273 TROSTA 2710

42

FAMILY : M (PILLER FILLER) HSTM 102 HSTM 451WEI FAMILY : N (REINFORCEMENT PAD) HSTM 301G HSTM 301P DYNAFIX 7116 TEROCORE 1900 FAMILY : O (ANTIVIBRATION PAD) HSTM 203H FAMILY : P (SEALING STRIPS) TEROSTAT 962 ANSEAL Z900 ANSEAL Z91A (SS20AAIN) FAMILY : Q (PILLAR FILLER – INJ. MOULDING) TEROPHON 6081 TEROPHON 6140 FAMILY : R (PRIMER REFILLING) TEROSTAT 8517H GLASS PRIMER TEROSTAT 8521 BODY PRIMER

43

74 IDC

Monthly demand of finished goods manufactured at 74 IDC and

Machines employed.

Product

Monthly demand

(MT)

Machine

employed

processing

time for each batch(hrs)

ANSEAL A26 40 LAB DPM 8

ANSEAL B33N( PULSAR) 400 DPM 9

ANSEAL B33N-AAIN-T 2000 DPM 10

ANSEAL E-54 15 LAB DPM 12

ANSEAL S 70 400 LAB DPM 10

Anseal V-22/MUL-cost red. 40000 BLENDER 14

ANSEAL V-22ED 24000 BLENDER 14

Anseal Z 901 0 SIGMA 10

ANSEAL Z55M 40 LAB DPM 9

Anseal Z-71S 1400 DPM 9

ANSEAL Z71S(H) 10000 DPM 9

ANSEAL Z77 20000 DPM 9

ANSEAL Z-900 100 SIGMA 10

ANSEAL-860 4000 NIDDER+DPM 12+2

ANSEAL-B33N 4000 DPM 9

ANSEAL-E56 2000 DPM 14

ANSEAL-Z41 3100 DPM 10

ANSEAL-Z800 600 SIGMA 10

BPR 500 DPM 9

Cavity Wax AP-21 2000 PARWANOO

CEMEDIENE S 440- T 2000 DPM 12

CEMEDINE S 340 6000 DPM 9

CEMEDINE S-440 2000 DPM 9

CEMEDINE S-440-NEW DPM 9

CURING PASTE FOR 1027 373.79 TRM

CURING PASTE FOR 1108 32.30 TRM

DYNAFIX-7116 ORIGINAL FROM SAIM FRANCE 6000 SIGMA 12

HSTM 102 BLOWING MASS 3102.40 NIDDER 4

HSTM 301G(GETZ) 0 NIDDER

HSTM-102 ADHESIVE COMPOUND 1500 SIGMA 16

HSTM-102 BLOWING COMPOUND 3500 TRM 5

HSTM203H 1000 NIDDER 5

HSTM203HT 4500 NIDDER 5

44

HSTM-451 (M) 10 TRM 16

HSTM-451W BLOWING MASS 187.92 NIDDER 5

HSTM451WEI 200 LAB SIGMA 7

IMPERMASTIC 1108 4200 DPM 9

IMPERMATIC 1027ACBV 1200 DPM 11

PASTE 3207 0.30 LAB DPM 9

PASTE ACCELERATOR (Z800) 10.86 HX MIXER 1.5

PASTE BPR 0.00

PASTE C BLACK(DINP) 1094.80 DPM 6

PASTE CELTON 0.08 HX MIXER 2

PASTE CURING(Z55M) 1.44 TRM 1

PASTE D-3 3791.81 SIGMA or NIDDER 8

Paste D4 for S440 0.00 SIGMA or NIDDER 8

PASTE D-5 2645.88 SIGMA or NIDDER 8

PASTE DPL PT 0.61 TRM 1

PASTE FOR ANSEAL 860M 3480.00 NIDDER+DPM 4X6 NIDDER + 6

HR ON DPM

paste for cavity wax AP-21 847.00 HX MIXER 5

Paste for V-22 ED 30.00 BLENDER 16

PASTE GM 212.79 TRM 3

PASTE GM FOR S440 49.24 TRM 3

PASTE HEXAMINE 142.39 TRM 3

PASTE INTER.PDT (Z55M) 1.52 TRM 1

PASTE KETZEN BLACK(A26) 2.77 LAB DPM 9

PASTE KNEADED RUBBER PASTE Z800 179.16 SIGMA 4

PASTE M-10 4072.98 NIDDER or

SIGMA 8

PASTE TACK DINP/DIDP 39.33 TRM 3

PASTE TIO2 WITH DINP 35.00 TRM 3

PASTE Z61S 282.19 TRM 3

PASTE-QUINTON 25.49 TRM 1.5

PST AC 1000 FOR S 440 96.00 TRM 2

PT - 590 10225 BLENDER 22

Resin solution for Cavity Wax 889.60 HX MIXER 4

Rot1& Gelb paste 64.00 TRM 3

RUBBER PASTE FOR 1108 1660.26 NIDDER 7

Rubber paste for S-440 3935.32 SIGMA or NIDDER 8

Terocore 1900 (Mass) 200 SIGMA 10

TEROCORE-1414 400 SIGMA 10

TEROKAL 4520-34GB 1200 DPM 16

TEROKAL 5027 30 LAB DPM 6

TEROKAL-4520-34GB-H 600 DPM 12

Terolan 792/Honda 25000 BLENDER or

HT1/HT2 22

45

TEROSTAT 3207 10 LAB DPM 9

TEROSTAT 3213-138 300 DPM 10

Terostat 3213-138( M &M) 4500 DPM 10

TEROSTAT 3215 H/41 (GMI) 25 LAB DPM 8

TEROSTAT-2710 7000 SIGMA 12

TEROSTAT-273 2000 SIGMA or NIDDER 8

TEROSTAT-273(AN) 1500 SIGMA or NIDDER 8

TEROSTST-2703 AAIN 250 SIGMA or NIDDER 9

Terotex 3600/Mark Auto 200 BLENDER 16

TEROTEX 5955 LV 10000 BLENDER 24

TEROTEX 5972AC 7150 DPM 10

Terotex-3028 9000 BLENDER 24

TEROTEX-3860IDW 32000 BLENDER 16

TEROTEX-6008 3500 DPM + TRM 16+6

TKL 4520 50 LAB DPM 6

Tln 792-Jamshedpur 2000 BLENDER 22

TRA paste 39.42 TRM 4

TST 273-MUL 6000 NIDDER 8

TTX 3558-H-Cost red 35000 BLENDER 22

ttx 3558-telco jamshed 8000 BLENDER 28

XM1305 PST FOR Z-77 3177.60 NIDDER 5

Z 900 ( MUL) 5 SIGMA 10

Z-900 ACCELERATOR PASTE 2.40 HX MIXER 1.5

64 IDC

List of finished goods manufactured at 64 IDC is as follows:

Product Dimensions Customer/Model

TST 273 - Hyundai 6x2.5mm; 24 mtr Hyundai

TST 273 - Telco 3.5 mm; 5 mtr Telco(Pune)

TST273 3mm;5 mtr Telco(Jamsedpur)

TST 273 - MUL 5 mm, 5 mtr MUL

TST 273 - GMI 5x3 mm;24 mtr GMI

TST 273 - GMI 5x2.3 mm;24 mtr GMI

TST273 Mass A.N

HSTM 102 4x30x135 JBM

HSTM 102 5.5x40x150 JBM

HSTM 102 5.5x40x115 JBM

46

HSTM 102 5.5x40x475 M&M

HSTM 102 5.5x20x675 M&M

Z900 6x500 AUTO.STAMP.

TST 273 5x25x10 VOLVO

HSTM 451WEI 1.2x50x215 MCI

TER1414 1.0x80x360 INNOVA

TER1414 1.0x80x250 INNOVA

HSTM 203S 1.8x180x310 L- Model

HSTM 203S 1.8x135x195 M - Model

HSTM 203H 1.6x100x250 Ace

HSTM 203S 2x120x350 VOLVO

HSTM 203 S 1.8x185x75 MUL

HSTM 203 S 2x100x165 TOYOTA

TST 2703 2x40x405 REPL

HSTM 102 5.5x40x105 JBM

HSTM 102 5.5x60x145 JBM

HSTM 102 4.5x30x180 Sonata

HSTM 102 5x30x95 Hyundai

HSTM 102 8.5x60x120 Hyundai

HSTM 451WEI 6.5x30x40 ICML

HSTM 102 5.5x40x95 M&M

HSTM 102 5.5x40x180 Hyundai

HSTM 102 5.5x40x300 Hyundai

HSTM 102 2.5x40x300 MUL/TKM

HSTM 451WEI 8x20x300 MUL

Z91 1.2x10x170 GMI

Z91 1.2x10x550 GMI

Dynafix 7116 1x150x260 HONDA

Dynafix 7116 1x120x410 HONDA

Dynafix 7116 0.9x180x75 MUL

Dynafix 7116 1X150X280 TM

Dynafix 7116 1x100x200 ICML

Dynafix 7116 1x75x150 ICML

Dynafix 7116 0.9x80x215 M-Model

Dynafix 7116 0.9x135x315 MUL

Dynafix 7116 0.9x105x495 MUL

Dynafix 7116 1x110x220 HONDA

Z-900 2x50x200 MUL

Z-900 6.5x18x200 HONDA

Z-901 8x13x260 HONDA

TER 1900 2.0x150x210 GMI

TER 1900 2.0x110x170 GMI

TER 1414 1.1x170x200 TOYOTA

TER 1414 1.1x90x200 TOYOTA

TER 1414 1.1x150x345 TOYOTA

47

TER 1414 1.1x185x490 TOYOTA

HSTM 102AD 20 mm; Rolls

HSTM 102AD 30 mm; Rolls

HSTM 102AD 40 mm; Rolls

HSTM 102AD 60 mm; Rolls

TST 8517 10 ML

TST 8517 100 ML

Raw materials being procured for value addition process are as follows:

74 IDC procures more than 400 raw materials. However following is the

list of prominent items:

BAGS

Sr. No.

Item code Item desc

1 WAF005 4610-Tixogel

2 NVHF0025 AC 1000(AZODICARBONAMIDE)

3 NVHI019 ACCICURE-BSM

4 NVHI012 ACCINOX B RODS

5 NVHF037 ACCINOX TDQ

7 OTF014 ADDITOL VXL 1105

8 PLF006 ADIKA ED 503

9 CUF021 AER HARDENER D-610

10 NVHF085 AEROSIL RY - 200S

11 FLF055 AF-240

13 NVHF048 AJICURE PN23

14 APF028 ALRESEN PA-101

15 FLI004 ALULMINIUM SILICATE

16 FLF026 ALUMINIUM SILICATE(64041K)dexie

17 OTF127 ANTIOXIDANT OMB (59001G-372755)

18 TAF006 ARBOCEL BWW-40

19 APF020 BAKELITE HARZ 022(45091M)

20 CUF011 BARIUM SULPHATE

21 FLI009 Barium Sulphate Off Colour

22 FLI008 BARIUM SULPHATE SuperSnowWhite

23 NVHF003 BASO4-BARIUM SULPHATE

24 FLI010 BENITE-100

25 OTF017 BENZOQUINONE DIOXIME

48

26 CUF016 BHT powder(59012T)

27 NVHF001 BK 1675N(SOBUTYLENE-PRENE CO-POLYMER)

28 PRF019 BORDEN VC 260-S

29 NVHF0011 BP-32E(BARIUM ZINCORGANO COMPLEX)

30 NVHF0019 BR 01(POLYBUTADIENE RUBBER)

31 RUF003 BUTYL RUBBER 065

32 RUF001 BUTYL RUBBER 268

33 RUF013 BUTYL XL 1000 (27011K)

34 TAF003 CABOSIL M5

35 TAF002 CABOSIL TS 720

36 FLI001 CALCITE

37 MEI001 CALCIUM OXIDE

40 FLF056 Calsec Po

41 API007 CAPOLYTE CP-90

42 DYI001 CARBON BLACK - HAFN-330

43 DYF007 CARBON BLACK (66196C)

44 DYF011 CARBON BLACK-ELFTEX 12

45 DYF016 C-Black-P287H

46 NVHF0026 CELLEX-A (SURFACE COATED UREA)

47 OTF011 CELLIMIC C22

49 OTF160 CELSTAR T 36

50 OTF010 CELTON NP

51 NVHF086 CG 1400

52 OTF118 CH CL-220

53 FLF021 CHINA CLAY

54 RUF023 Cht 100

55 RUF034 CLEANING RUBBER

56 MEF001 CML 31

57 OTF157 CP 0565

58 OTF117 CP 0765

59 NVHF005 CP 427 PVC RESIN

60 APF001 CURAZOLE 2PHZ

61 OTI001 DCO

62 TAI002 DEG(500ml)

63 RUF003 DEGLAN

64 NVHF0031 DENKABLACK

65 NVHF061 DER-671

66 APF002 DESMODUR BL-175

67 POF004 DIANA PROCESS OIL NM-280

68 ACF004 DIANAL LP 3105

69 FLI011 DICAL-S(TC-301)

70 OTF005 DIERLON 6500

71 OTI019 DPL-80

72 OTI018 DPL-PT

49

73 FLF014 DUALITE-M 6001 AE

74 CUF014 DURALINK HTS

75 DYF002 DYE GELB

76 DYF003 DYE ROT 1

77 OTF067 DYHARD 100 (51055V)

78 OTF068 DYHARD 100S (51075 R)

79 HSI001 DYHARD 100SH

80 CUF323 DYHARD UR 300

81 OTF015 EDAPLAN LA 411

82 RUF017 Efrolen P 150

83 NVHF087 EH 3366 S

84 CUF024 EH 3636 S

85 NVHF069 EP-96

86 EMF002 EPICLON-4901

87 CUF012 EPICURE-108 FF

88 EMI001 EPOXY PG-100

89 APF019 ESCOREZ 1102

90 APF003 ESCOREZ 1202

91 PLI098 ETHANOL

92 APF006 EURETEK-507

93 NVHF051 EXPANCEL 091 DU140

94 OTF027 EXPANCEL 092 DU 120

95 RUF016 EXXON BUTYL XL-1000

96 APF009 FACTIC 2

97 FLF067 FEF

98 FLF078 FIBER

99 FLF033 FILLER CC

100 FLI002 FORCAL So

101 PRF018 FORMOLON F40

102 POF001 FUKOL P-100

103 POF003 FUKOL P-400

104 DYI005 GREEN DYE-2724

105 APF026 GRILBOND 9477 (149773)

106 EMF006 Grinolit RV-1812

107 NVHF0029 H-130W (HYDROGENATED HYDROCARBON)

108 NVHF0013 H3842(MODIFIEDDICY)

109 FLF001 HANKUNKA CCR

110 DYI006 HBL 53

111 HSI059 Hexamethyl

112 CUI001 HEXAMINE

113 EMF012 HME-500

114 FLF035 HUBERCARB Q325

115 FLF015 HYDROCARB

116 RUI001 IPCL 1220

117 PLF007 IPU 22G

50

118 PBF003 ISOBUTULENE

119 RUF007 JSR-BR31(BUTADIENE RUBBER)

120 FLF010 JURAPERLE BS 100(omyacarb 4hd)

121 FLF045 K WHITE

122 RUF028 KALAR 75 (CROSS LINKED BUTYL RUBBER)

123 FLF048 KANSUI NO. 70

124 DYF001 KETZEN BLACK EC-10

125 NVHF0016 KR450(DGEB-A)

126 OTF158 KYOWANOL - D

127 PRF009 LACOVYL PB-1302

128 NVHF0030 LIR 410(MODIFIED POLYISOPRENE)

129 NVHF0010 LP090(PVC RESIN PASTE GRADE)

130 OTF017 LS 770

131 NVHF009 LS100(PVC STRAIGHT)

132 TAF005 MAGNISIUM OXIDE

133 TA0F51 MBT

134 CUF002 MBTS BAYER

135 TAI001 Meg

136 NVHF046 MICA N280

137 FLI007 MICA POWDER

138 OTF227 MICRO GLASSBEADS

139 OTF542 MICRO MICA W-160

140 FLI015 Microchina 4080-for TST 273

141 FLI012 Microncarb 2 Microns

142 OTF080 Micropearl 102 D

143 OTF163 Micropearl F-78D

144 OTF165 Microsol

145 NVHF049 MILLISIL C 400

146 RUF021 MIRAVITHEN D-18002

147 NVHF002 MML 140-POLYISOBUTELENE

148 OTF003 MS POLYMER 20A/203

149 DYI010 N 234 PB- CARBON BLACK

150 FLF171 NATRIUM-BICARBONATE

151 FLF044 NEOLIGHT 60

152 FLF022 NEOLIGHT SP

153 FLF043 NEOLIGHT SS

154 FLF045 NEOLIGHT -T

155 APF010 NIKANOL NP 100

156 RUF025 NIPOL 1009

158 CUF003 NO. 918

159 OTF007 NO.210

160 OTF006 NO.320

161 CUF015 Noccelar TRA

162 CUF004 NOCELLAR F

163 CUF005 NOCELLAR TS

51

164 CUF006 NOCRAC NS 6

165 NVHF044 NOIR FLAMMRUSS 101

166 OTF161 NOPCOSTAT HS

167 RUF012 NR TUBE RECLAIM (T-1010)

168 CUF007 NUC SILICON 187A

169 OTI002 OLEIC ACID - RANBAXY

170 FLF023 Omaya 10

171 FLF054 OMYACARB-10

172 FLF041 OMYACARB-6-AL

173 FLF007 ORGANITE

174 NVHF0014 OXIDE BLACK

175 PRF305 OXY 6338

176 PRF024 PBM-6-Kaneka Kanevinyl paste resin

177 PRF025 PCH-72- Kaneka kanevinyl Paste Resin

178 CUF010 PF RESIN (45042 J)

179 API010 PF resin-Powerplast 1815 for TSt 273

180 WAI082 Pfinder 4300

181 WAF002 Pfinder 4600

182 EMF013 PG-207P

183 OTF019 PHTHALIC ANHYDRIDE pta

184 FLF024 PLASTORIT 0000

185 OTF130 PLEX 4087 F (380260)

186 OTF131 PLEX 4893 F (108274)

187 API012 POLYAMINO AMIDE-SUNMIDE 135

188 PBF002 POLYBIS 10N

189 RUF014 POLYBUTADIEN CIS-1 4 (26034Y)

190 RUF027 Polybutadine

191 PBF008 POLYBUTENE HV-1900

192 PLF011 POLYBUTENE-10 (37026W)

193 RUF010 POLYISOBUTYLEN (35008C)Tetrax

194 NVHF0015 PolyPox 1000

195 DYF005 PRINTEX G

196 DYF015 PRINTEX U POWDER (66038F)

197 POF13 Process oil f-262

198 PRF001 PVC RESIN LP-170

199 PRI001 PVC RESIN-120

200 PRI002 PVC resin-124

201 APF015 QUINTON U 185

202 NVHF0015 R1415-1(DGEB-A)

203 APF023 R-1636-2

204 Taf004 R-805

205 DYF012 RAVEN 1170

206 DYI004 RC RED DYE

207 RUF027 RECLAIM RUBBER

208 HSF006 REOFOS 65

52

209 OTF132 RHENOFIT ZBS

210 OTI016 RT-115

211 CUI002 Rubber Chemical

212 NVHF055 RUTAPOX VE 3726 / epr 881

213 FLF045 CARBON BLACK

214 OTF080 SASOL WAX

215 NVHF0027 SBR1778 (STYRENE BUTADIENE RUBBER)

216 FLF170 SCHIEFERMEHL DIN 130/16900MF

217 OTF002 SCONOC #5

218 NVHF078 SCOTCHLITE VS 5500

219 HSI001 Shita Stab

220 APF012 SHONOL5904

221 FLI006 SILICA POWDER

222 APF030 Silquest A-1100

223 FLF016 SL-300

224 PRF023 Slovenyl EP

225 FLF005 SOCAL -322

226 FLF003 SOCAL U1S1

227 FLF025 SOCAL U1S2

228 OTF162 Sodium Hydro oxide

229 PRF002 SOLVIC-266 SF

230 PRF003 SOLVIC-372 HA

231 PRF012 SOLVIC-373 MC

232 PRF004 SOLVIC-374 MB

233 PRF022 SOLVIN 561 SF

234 APF029 STAYBELITE ESTER-10

235 APF029 STEARIC ACID

236 FLF047 ST-FM

237 CUF013 SULPHER (57030P)

238 OTF162 SUNATTACH

239 MEF002 SUPER 40

240 MEI003 SUPER 40- LOCAL( CaO)

241 NVHF045 SYLOTHIX 53

242 FLF027 TALC (64176G)

243 FLF037 TALC (AT-1)-for 2460

244 FLF032 Talc matsu

245 FLI003 TALC POWDER indian

246 FLI017 Talc Powder-H for Tst 273

247 FLF006 TALC SS

248 FLF023 TALKUM NANINTCH C-60

249 HSI003 TBLS

250 nvhf034 TC

251 NVHF0032 TCR (CALCIUM CARBONATE)

252 NVHI017 TDCURE-TMTD

253 NVHF066 Terocore Mass(Tacky)

53

254 OTI046 Terolan 8293

255 EMI003 TETA

256 FLF027 THIA EPOXY TD011

257 CUF008 TINUVIN 327

258 DYI002 TIO2 - Anatise - Kilburn

259 HSF005 TITANE-KA-100

260 NVHF0018 TM-506(BUTYL TIN MALEAT ESTER COMPLEX)

261 NVHF0020 TR1101(STYRENE BUTADIENE RUBBER)

262 OTF151 TRACOMB PO 3142

263 NVHF0023 TS (TETRAMETHYL THIURAM MONO SULPHIDE)

264 RUF002 UBEPOL BR 150

266 RUF026 UBEPOL VCR - 412

267 NVHF0033 ULTRA MARINE BLUE

268 APF014 VERSAMID 66

269 FLF169 VERTAL 1500

270 PRF005 VESTOLIT-E7031

271 PRF008 VESTOLIT-P1353 K

272 FLI014 Vimcrocarb 1250

273 PRF006 VINNOLIT-C14/60V

274 PRF014 VINNOLIT-EX 69CQ

275 PRF021 VINNOLIT-P-70F

276 PRF013 VINNOLIT-SA 1062/7

277 PBF001 VISTANEX LMMH

278 CUF009 VOLNOC GM

279 DYF006 VULCAN XC-72R

280 FLF009 WINNOFIL T

281 FLF008 WOLLASTONITE

282 NVHF008 YD011GLYCIDYLEATHEROFBIHENOL

283 NVHF007 YD128DIGLYCIDYLEATHEROF BIHENOL A

284 NVHF081 YD134

285 OTF115 Z900 BLOCK

286 OTF116 Z91A BLOCK

287 NVHF0012 ZEOSIL155

288 PRF027 Zest pbzxa

289 PRF011 ZEST PNHA RESIN

290 HSI004 ZNO

291 HSF003 ZnO (65139D, FOR 2710)

292 FLF008 Flex 91 AF1

Liquid

Sr. No. Item code Item desc

54

1 APF022 34051M-DUPLEIX SEALER

2 WAF004 4235-oil

3 WAF001 4438-calcium sulphonate

4 NVHF0021 A-2(PETROLEUM HYDROCARBON)

5 ACF001 ACRONAL 18D (RM TEROKAL 3199)

6 API001 ANLAK-313

7 WAF003 AP 21/1 concentrate

8 WAI001 Benzoplast (CPS 300 TBN)

9 EMF004 CARDOLITE NC 513

10 POI003 CORTIS - 220 OIL

11 PLI002 DBP

12 NVHF053 DER 331-VE

13 POF004 DIANA PROCESS OIL NM-280

14 PLI004 DIDP

15 PLF008 DIETHYL HEXYLSEBACATE

16 OTF008 DIMETHYL CYC.PHTHALATE

17 PLI005 DINP

18 NVHF006 DOA

19 PLI001 DOP

20 PLF002 EDENOL 190/EDENOR

21 EMI003 edonol 344

22 POI001 ELASTO-245 OIL

23 POF010 ENERPAR-3036

24 EMF009 EPI REZ 58005

25 EMF001 EPICLON TSR 515

26 NVHF077 EPIKOTE 834

27 NVHF054 EPIKOTE 872

28 API012 EPOXY RESIN EFW

29 EMI006 Epoxy resin Epikote 828

30 EMI005 EPOXY RESIN GY 260

31 EMI001 EPOXY RESIN PG 100

32 PLI003 ESO-IVAMOL SN

33 SLI014 Ethanol for cavity wax

34 APF006 EURETEK-507

35 SLI009 EXXSOL D-80

36 EMI003 GY-250

37 NVHF052 HYCAR 1300X8

38 RUF022 HYCAR CTBN 1300 X 13

39 PLI006 Indofil G-54-Polymeric plasticiser

40 NVHF068 INDOPOL H 18000 (37017L)

41 PBF005 INDOPOL H-18000

42 PBF004 INDOPOL H-300

43 SLI010 ISOPAR-L(S)

44 PRF022 JAYFLEX 77

45 OTF172 JEFFAMINE D-2000

55

46 WAF010 Jeffsol PC- Propylene carbonate

47 APF024 LAROMIN C 260

48 OTF151 LYON

49 TAI001 MEG

50 PLF005 MESAMOLL

51 SLI007 METHANOL

52 SLI016 MRPL-10/14N

53 SLI004 MTO - B.P. MAKE

54 SLI013 MTO-low flash point (14/20)

55 NVHF082 N-30 L (Acrylonitryl Butadine Copolymer)

56 WAF011 Novares C 10- resin for underbody wax

57 POF002 NP.24

58 OTF020 OCTYLTIN THIOESTER

59 POF014 OEST SPEZOIL V 2409

60 NVHF004 PB1400-POLYBUTENE

61 NVHF0017 PLEXXIGUM V(TRIMRTHYLOPROPANE TRM)

62 PLF010 PN-260

63 API012 POLYAMINO AMIDE-SUNMIDE 135

64 PLF011 POLYBUTENE-10 (37026W) (INDOPOL H-100)

65 PLF012 POLYBUTENE-30 (37027X)h-300

66 POF007 POLYOEL 110 (37031B)

67 POF006 POLYVEST OC 800S (26046L)

68 POF13 PROCESS OIL F-262

69 PBI003 PV - 10 (K-VIS 10)

70 PBI001 PV 30/HV-300- kvs-30

71 PBI002 PV-200

72 WAF009 Ralufon 528- corrosion protection additive

73 HSF006 REOFOS 65

74 EMF005 RUETAPOX VE 3356

75 PLF003 SANTICIZER 278

76 POF012 Shell Catenex S725

77 POF009 SHELL EDELEX-945

78 APIOO3 SYNPOL 125

79 EMI003 TETA

80 SLI017 XYLENE

81 NVHF007 YD128DIGLYCIDYLEATHEROF BISPHENOL A

82 SLI001 IPA

83 FLI004 Monarch Resin

56

CHAPTER - IV

LITERATURE REVIEW

57

a. Material Mass Balance

Doing a „Mass Balance‟ is similar in principle to accounting. In

accounting, accountants do balances of what happens to a Company‟s

money. Chemical engineers do a mass balance to account for what

happens to each of the chemicals that is used in a chemical process.

Material quantities, as they pass through processing operations, can be

described by material balances. Such balances are statements on the

conservation of mass. If there is no accumulation, what goes into a

process must come out. This is true for batch process1 . It is equally true

for continuous process 2 over any chosen time interval.

Material and energy balances are very important in an industry. Material

balances are fundamental to the control of processing, particularly in the

control of yields of the products.

Basic Principles

If the unit operation, whatever its nature is seen as a whole it may be

represented diagrammatically as a box, as shown in Figure. 4. 1. The

mass and energy going into the box must balance with the mass and

energy coming out.

1 A Batch process is a process where the feed streams are fed to the process to get it started.

The feed material is then processed through various process steps and the finished products

are created during one or more of the steps. The process is fed and products result only at

specific times. Examples are making a batch of a product, like soup or a specialty chemical.

2 A Continuous process is a process that has the feed streams and product streams

moving chemicals into and out of the process all the time. At every instant, the

process is fed and product is produced. Examples are an oil refinery, a power grid and

a steady salaried job.

58

Figure 4.1: Mass and Energy Balance

The law of conservation of mass leads to what is called a mass or a

material balance.

Mass In = Mass Out + Mass Stored

Raw Materials = Products + Wastes + Stored Materials.

ΣmR

= ΣmP

+ Σ mW

+ ΣmS

(where Σ (sigma) denotes the sum of all terms).

ΣmR

= ΣmR1

+ Σ mR2

+ ΣmR3

= Total Raw Materials

ΣmP

= ΣmP1

+ Σ mP2

+ ΣmP3

= Total Products.

ΣmW

= ΣmW1

+ Σ mW2

+ ΣmW3

= Total Waste Products

59

ΣmS

= ΣmS1

+ Σ mS2

+ ΣmS3

= Total Stored Products.

If there are no chemical changes occurring in the plant, the law of

conservation of mass will apply also to each component, so that for

component A:

mA

in entering materials = mA

in the exit materials + mA

stored in plant.

At Henkel plant that is producing Automotive Sealants by Blending

Technique3 in Batch operations by the applications of mechanical

Blenders and Double Planetary Mixers. if the total quantity of Raw

Materials going into the processing is not equalled by the total of

the Sealant produced and the Sealants in the waste, then there is

something wrong. Sealants are either being burned (chemically

changed) or accumulating in the blenders or mixers or else it is

going unnoticed down the drain somewhere. In this case:

MA

= (mAP

+ mAW

+ mAU

)

where mAU

is the unknown loss and needs to be identified. So the

material balance is now:

Raw Materials = Products + Waste Products + Stored Products +

Losses

where Losses are the unidentified materials.

3 Blending : A chemical processing technique in which various ingredients

are combined in such proportions as to give a product of some desired

composition. Complicated examples, in which an optimum or best achievable

composition must be sought, need quite elaborate calculation methods, such as

linear programming, but simple examples can be solved by straight forward

mass balances.

60

The first step is to look at the three basic categories: materials in,

materials out and materials stored. Then the materials in each category

have to be considered whether they are to be treated as a whole, a

gross mass balance, or whether various constituents should be treated

separately and if so what constituents

Material balances can be based on total mass, mass of dry solids, or

mass of particular components.

1 Method for Preparing Process Flow Chart

The identification and drawing up a unit operation/process is prerequisite

for material balance. The procedure for drawing up the process flow

diagrams is explained below.

Flow charts are schematic representation of the production process,

involving various input resources, conversion steps and output and

recycle streams. The process flow may be constructed stepwise i.e. by

identifying the inputs / output / wastes at each stage of the process, as

shown in the Figure 4.2

61

Figure 4.2 : Process Flow Chart

Inputs of the process could include raw materials, water, steam, energy

(electricity, etc).

Process Steps should be sequentially drawn from raw material to

finished product. Intermediates and any other byproduct should also be

represented. The operating process parameters such as temperature,

pressure, % concentration, etc. should be represented.

The flow rate of various streams should also be represented in

appropriate units like m3

/h or kg/h. In case of batch process the total

cycle time should be included.

Wastes / by products could include solids, water, chemicals, energy etc.

For each process steps (unit operation) as well as for an entire plant,

energy and mass balance diagram should be drawn.

62

Output of the process is the final product produced in the plant.

Example: -Process flow diagram - raw material to finished product

(At Henkel, Gurgaon)

Figure 4.3 : Material Mass Balancing for PVC based Sealants

How to Carry out Material Balance?

Material balances are important, since they make it possible to identify

and quantify previously unknown losses. These balances are also useful

for monitoring the improvements made in an ongoing project, while

evaluating cost benefits. Raw materials, in any manufacturing activity are

not only major cost components but also major sources of environmental

Mass balance study - Actual Process Map

Bottom valve of

vessel

Closer (1)

Vacuum

checking (2)

Counting Of

Bags And

Numbering(3)

Liquid

Chargin

g (4)

Filler Charging (5)

DOP &

EXXOL D-

80 Charging

(6)

PVC

Charging

(7)

Viscosity

Adjustment(8)

Discharg

ing in

Drums(9

) Mahale

Filer

Cleaning

(1)1) Dismantles

Pump

Assembly

from

Blender(13)

Vessel

Cleaning

By Spray

Gun(16)

Material

Looses in

air &

bagsc

Material

Looses in

air &

bagsc

Bucket Filer

Cleaning 10)

Second Batch ( 1

to 8 )

Discharging

in Drums (9) 3rd Batch ( 1 to 8 )

Bucket Filer

Cleaning

(10)

Mahale

Filer

Cleaning(1

1)

Dischargin

g in Drums

(9)

Rinse Vessel

With DOP

And Drawn

In Drum

Through

Pump(12)

Collect

Material

And

Charge in

Left Over

Drum(15)

Collect

Material

In

Washing

Drum(17)

63

pollution. Inefficient use of raw materials in production processes are

reflected as wastes.

Guidelines for Material Mass Balance

For a complex production stream, it is better to first draft the

overall material and energy balance.

While splitting up the total system, choose, simple discrete sub-

systems. The process flow diagram could be useful here.

Choose the material balance envelope such that, the number of

streams entering and leaving, is the smallest possible.

Always choose recycle streams (material) within the envelope.

The measurement units may include, time factor or production

linkages.

Consider a full batch as the reference in case of batch

operations.

It is important to include start-up and cleaning operation

consumptions of material .

In case of shutdown losses, averaging over long periods may

be necessary.

Highlight losses at part load operations if prevalent.

The material balances along the above guidelines, are required to be

developed at the various levels.

1. Overall Material balance: This involves the input and output

streams for complete plant.

64

2. Section wise Material balances: In the sequence of process flow,

material balances are required to be made for each

section/department/cost centers. This would help to prioritize focus

areas for efficiency improvement.

3. Equipment-wise Material balances: Material balances, for key

equipment would help assess performance of equipment, which

would in turn help identify and quantify energy and material avoidable

losses.

Mass Balance Calculation Procedure:

The Mass balance is a calculation procedure that basically checks if

directly or indirectly measured mass flows are in agreement with the

mass conservation principles.

This balance is of the utmost importance and is an indispensable tool

for a clear understanding of the mass situation achieved in practice.

In order to use it correctly, the following procedure should be used:

Clearly identify the problem to be studied.

Define a boundary that encloses the entire system or sub-system

to be analysed. Entering and leaving mass flows must be

measured at the boundary.

The boundary must be chosen in such a way that: All relevant

flows must cross it, all non-relevant flows being within the

boundary.

65

Measurements at the boundary must be possible in an easy and

accurate manner.

Select an appropriate test period depending on the type of process

and product.

Carry out the measurements.

Calculate the mass flow.

Verify mass balance. If the balances are outside acceptable limits,

then repeat the measurements.

66

b. Value Stream Mapping

“ When there is a product and a customer, there is a value stream.

The challenge is seeing it” ~ James Womack

Value Stream Mapping is a tool commonly used in lean manufacturing

technique / lean continuous improvement programmes to help

understand, analyse and improve the flow of materials and information

currently required to bring a product or service to a customer. It can be

used in any process that needs an improvement. Value Stream Mapping

borne out of lean ideology captures and presents the whole process

from end to end in a method that is easy to understand by those working

the process - it captures the current issues and presents a realistic

picture.

Value Stream Mapping is a helpful method that can be used in Lean

Environment to identify opportunities for improvement in lead time.

Although Value stream mapping is often associated with manufacturing,

it is also used in logistics, Supply Chain, Service related industries,

healthcare software development and product development.

VSM itself doesn't improve anything. It's an analysis and planning

tool. The principle aim of Value Stream Mapping is to improve

processes. When you draw a future-state map you've described how you

want things to be. The task then is getting the value stream to function

that way, which occurs step-by-step at the process level.

67

1. Value Stream Mapping (VSM) helps businesses think of flow

instead of discrete production processes and drive lean systems

implementation rather than isolated process improvements.

2. Visually represents a process – all the actions required to deliver a

product or service to a customer (value-added / Non value added).

In a build-to-the-standard form Shigeo Shingo suggests that the value-

adding steps be drawn across the centre of the map and the non-value

adding steps be represented in vertical lines at right angles to the value

stream. Thus the activities become easily separated into the value

stream which is the focus of the one type of attention and the „waste‟

steps another type. He calls the value stream the process and non-value

streams the operations. The thinking here is that the non-value adding

steps are often preparatory or tidying up to the value adding step and

are closely associated with the person or machine/workstation that

executes the value-adding step. Therefore each vertical line is the „story‟

of a person or workstation while the horizontal line represents the story

of the product being created.

The goal is to create a map, with minimum delay, while observing the

target process in situation. Thus, value stream maps are usually drawn

by hand in pencil to keep the mapping process simple and allow the

simple correction.

Value Stream Mapping borne out of lean ideology captures and presents

the whole process from end to end in a method that is easy to

68

understand by those working the process - it captures the current issues

and presents a realistic picture.

Through a simple to understand graphical format, future state (a diagram

showing an improved and altered process) can be formulated and

defined. The method encourages a team approach and through the

capture of performance measurement data provides a mechanism to

constructively critique activity. Participants in the activity are encouraged

to suggest improvements and contribute towards and implement an

action plan.

As with any lean management toolset the principle aim of Value Stream

Mapping is to improve processes. This is achieved by highlighting areas

of waste within a process and therefore enable businesses to eliminate

these activities. Value Stream Mapping also has the benefit of

categorising process activity into three main areas - value add, Non

value add (but necessary) and waste.

While Value stream mapping isn‟t overtly complicated it does benefit

from some preplanning – it is important that for example a house style is

developed using common graphics for use in the diagrams so that

everyone participating does so in a common language . You need to

ensure you consider including the following:

Material Flow

Inventory

Buffer stock

Suppliers, Customers

Material Transport

IT System

69

Information Flow

Implementation :

1. Identify the target product, product family, or service.

2. Draw a current state value stream map, which shows the current

steps, delays, and information flows required to deliver the target

product or service. This may be production flow ( raw materials to

consumer) or design flow (concept to launch). There are standard

symbol for representing Supply Chain entities.

3. Assess the current state value stream map in terms of creating

flow by eliminating waste.

4. Draw a future state value stream map.

5. Work toward the future state condition.

6. Create Action Plan and deploy

7. Measure benefits

70

c. Tools and Techniques of Data Analysis

ABC analysis : In the stores there are a wide variety of items, with a

stock record for each. Some have high value and others are very cheap.

The high-value items are normally controlled tightly, whereas the low-

value items are not treated as carefully and are issued in bulk in

approximate quantities.

ABC analysis is always used for better stand. According to this analysis,

all the inventory items are divided into three categories as A type, B type

and C type depending on their cost and quantity of consumption. The

differences between these types of items are summarized below :

CRITERIA A TYPE B TYPE C TYPE

Quantity 10 % 20 % 70 %

Annual Usage 75% 15% 10%

Control Very Strict Moderate Less

Ordering Weekly Bimonthly Yearly

Safety Stock Less High Highest

ABC Analysis is based on annual consumption data. It represents the

comparable data in volume verses values. After ABC analysis, Pareto

Graphs are derived for better understanding of ABC analysis.

These can be defined as:

A = 10 per cent of stock numbers, giving 65 per cent of turnover.

B = 20 per cent of stock numbers, giving 25 per cent of turnover.

C = 70 per cent of stock numbers, giving 10 per cent of turnover

71

Following chart is the best example of ABC analysis.

Raw Material

Category

Monthly

consumption (In MT)

Percentage

contribution

Fillers 330 44

Plasticizers & Solvents 210 28

PVC Resins 127.5 17

Adhesion Promoters 30 4

Rubbers 11.25 1.5

Stabilizers 7.5 1

Thixotropic Agents 3.75 0.5

Miscellaneous 30 4

Total 750 100

In order to get the best representation of materials movement, an ABC

analysis was done on the basis of monthly usage. Out of total monthly

material handling of around 667000 kg four raw materials i.e. Calcite,

Neolight SP, DOP, DINP and Exxsol D 80 constituted around 89 %. Of

total Raw material consumptions.

Pareto Analysis :

Pareto analysis is the technique which forms the basis of inventory

control thinking and is an important management principle which can be

applied to minimize effort and to obtain best results. It can also be

applied for time management, credit control and many other areas of

control. To gain best control, effort has to be directed to the most

important areas. The Pareto curve is often called the „80/20 rule‟, but the

72

values can be read off at any convenient point. For example, the graph

shows that 50 per cent of the product lines account for 97 per cent of the

sales (or that the other 50 per cent only provide 3 per cent of the sales –

a worrying thought).

The shape of the Pareto curve arises from the range of volumes and

values combined in a statistical distribution. The shape of the curve does

not always give exactly an 80/20 relationship, but this does not affect the

principles of applying Pareto analysis to inventory management. Stores

carry a wide variety of items, with a stock record for each. Some have

high value and others are very cheap.

The high-value items are normally controlled tightly, whereas the low-

value items are not treated as carefully and are issued in bulk in

approximate quantities. Most effort should be put into managing items

which are most important for achieving inventory targets.

In inventory control the best results are gained by organizing effort

correctly. There is not sufficient management time to maintain detailed

control of all individual items.

If the immediate aim is to reduce stockholding costs then studying the

stock of low-value items is unlikely to be the best place to start unless

the sales volume is very large. If service is the aim, then attention to a

few fast-moving lines often provides the bulk of the improvement

required.

73

Figure : Pareto Graph – ABC Analysis

74

CHAPTER – V

DATA ANALYSIS

75

a. Data collected through Questionnaire : As mentioned earlier

structure, disguised and multiple questionnaires have been used to

identify awareness about products, machines and critical raw material

properties and to know the level of training. In each question workers

having a choice to select from 1 to 3.

In the following section, I have represented response of various

workers first in tabular form and then in graphical form for each

questions.

76

Sl No.

Question No. of

workers responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

01

Do you check the condition

of Equipments

before starting of

Batch?

29 25 & 86 %

04 & 14 %

NIL

Data tabulated in previous page can be represented in graphical from as

Given below

86%

14%

77

Sl No.

Question No. of

workers responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

02

Do you check & confirm the

standard packing size weight of raw

materials bags before

charging.

29 Nil 01 & 3 %

28 & 97 %

Data tabulated in previous page can be represented in graphical from as

Given below

97%

3%

78

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

03

Do you verify the Liquid & Powder raw material‟s

cans / bags emptied

completely

29 20 & 69%

05 & 17%

04 & 14 %

69%

17%

14%

79

Sl No.

Question No. of

Workers responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

04

Do you Check the exothermic

property of Super 40 ( >

1200C) before addition into

each batches?

29 29 &

100 % Nil Nil

100%

80

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units & %

05

. Do all In-process

machines & testing

equipments like Weighing

Machines, Vacuum Gauge , Oven‟s

Thermometers , Glass

Thermometers are get

calibrated periodically.?

29 4 & 14%

06 & 21%

19 & 65%

14%

21%

65%

81

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

06

Process Temperature of the running batch is kept under control during batch processing?

29 28 & 97 %

1 & 3 % Nil

97%

3%

82

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

07

During

Filtration, On filter Choking,

do you bypass the

filtration process.?

29 29 & 100%

Nil Nil

0 %

100 %

83

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

08

. Preventive

Maintenance schedule is followed?

29 23 & 79 %

06 & 21%

Nil

21 %

79 %

84

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

09

Are all the Incoming Raw Material tested as per Standard Quality Test methods at the time of receiving?

29 6 &

21 % 18 & 62 %

5 & 17 %

21%

62%

17%

85

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

10

What Happened when such a Raw materials is found of sub quality standard.?

29 27 & 93 %

2 & 7 % Nil

93%

7% 0%

86

Sl No.

Question No. of

client units responded

Score 1 Score 2 Score 3

No. of units &

%

No. of units &

%

No. of units &

%

11

What are the

In-Job Training

schedule?

29 03 & 10%

01 & 30%

25 & 87%

10%

3%

87%

87

By the analysis of above data found from the questionnaire‟s answers, I

did not see any problem area except in three areas.

1. During Raw Material usage, Weight of standard packing‟s should be

verified for all the raw materials and during all the batch productions.

Whenever any standard pack size is to be used, it‟s standard weight

should be verified by weighing of bags. It may be possible some of

bags has lesser weights than standard packing size.

2. About the Calibration of Equipments, workers are not aware. It

should be mandatory to know about the calibration of equipments so

that workers should be more cautious after they are the end user.

3. For incoming Raw materials, Quality testing is not done for all the

raw materials. Because most of the raw materials are imported but it

is not necessary that being an imported item that Item would be of

100 % quality standard. It may also be inferior quality and their

instrument may also be non calibrated.

88

Data obtained from personal interview and Observations :

Actual Man-hours working – 8 Hours which is Standard man-

hours permitted for their job duties.

Working on Over Time duty and reasons : No such big issue

found. Certain times , workers has to stay on over time due to

absent of their reliever.

Work package is as per govt. regulations.

Job retentions ratio is found 85 %. Which means, employees are

satisfied with their job profile.

No. of Machine Brake down, severity of Brake down – is very less,

average 2 cases in a year. Since Henkel is OEM to all the Vehicle

manufacturer and due to any Brake down at Henkel, customer

may suffer. Henkel is more strict in controlling of Brake down.

Specified machines which goes under Brake down. – Triple Roll

mill and Gear Box of DPMs.

Equipments Calibration cycle and past History. – All the

compulsory equipments are being calibrated time to time. There is

no fault found in system.

Available technicians / engineers in last five years. – One

maintenance / technician is deputed in every shift to take care of

each shift.

89

Preventive Maintenance schedule.- is being followed strictly.

In Job training and Skilled Matrix. – In job training is being

imparted periodically on Quarterly basis. It is required on monthly

basis.

Awareness about Finished Goods and Raw Materials Properties –

Workers have relevant knowledge on FG and RMs. It needs more

emphasis on training on Raw Materials Handlings. It will help in

reducing the wastage. Awareness about handling of Raw Materials

is found poor among the workers.

Raw Materials inventories levels were decided so much times

before. These should be redecided in present scenario.

5S activities are very poor in store. Very poor House Keeping on

shop Floor as well as in Store. More training is needed.

90

1. Data analysis :

Raw Material Consumptions and Inventory Carrying Days

ED

OC

M R

RA

W M

AT

ER

IAL

R M

Co

ns.in

Au

g.1

0

R M

Co

ns.in

Se

pt.1

0

R M

Co

ns.in

Oct.1

0

Avg

. R

M co

nsu

m.

Inv

. ca

rry

ing

Da

ys

Sto

ck o

n 0

1.1

1.1

0

OTF167 POLYCIZER W-23-S 0 150 0 50 1997 3840

OTF168 TAKENATE B 7105 0 115 0 38 1595 2352

FLF053 VISCOEXCEL-30 0 336 0 112 1481 6375

PRF029 DEGALAN UC 506 0 363 0 121 1147 5329

OTF174 VINIFOR ST 78 0 8 0 3 922 92

TAI005 HDK N 20 8 0 0 3 770 79

FLF052 R 972(SiO2) 0 9 0 3 588 66

PLF002 EDENOL 190 122 122 183 142 256 1402

APF032 NOURYBOND 290 15 0 88 34 236 311

APF030 Silquest A-1100 1 1 1 1 173 4

DYF011 ELFTEX 12 2 2 2 2 137 8

PRF006 VINNOLIT C12/62 0 0 320 107 97 398

PLI002 DBP 130 0 0 43 89 149

OTF068 DYHARD 100S 116 96 0 71 212 576

PRF038 PSH 10 RESIN 3150 2730 1140 2340 86 7744

PRF037 KANEKA PS 300 540 1680 2420 1547 60 3575

FLF005 SOCAL -322 63 63 63 63 59 143

APF002 DESMODUR BL-175 SN 99 165 122 129 55 274

EMI006 Epoxy resin Epikote 828 355 0 0 118 52 235

PRF005 VESTOLIT-E7031 2719 2838 2169 2575 59 5814

APIOO3 SYNPOL 125 1253 1560 1669 1494 42 2395

MEI001 CALCIUM OXIDE 36357 37519 36165 36680 8 11449

FLI012 Microncarb 2 Microns 810 853 736 800 35 1077

PRF025 PCH-72- Kaneka Resin 12008 10464 4380 8951 29 9980

DYI002 TIO2 - Anatase - Kilburn 1443 1267 1672 1460 22 1221

SLI009 EXXSOL D-80 27957 28346 28683 28328 6 6340

PRF008 VESTOLIT-P1353 K 1560 5250 2175 2995 15 1731

PRI001 PVC RESIN-120 12560 17825 23211 17865 13 9106

APF006 Ibero Tech 6023 572 519 192 427 13 216

91

PRF024 PBM-6- paste resin 7432 8371 4965 6923 12 3092

FLF022 NEOLIGHT SP 39771 50628 36933 42444 10 17116

HSI004 ZNO 866 1047 998 971 14 537

TAF003 CABOSIL M5 964 1306 929 1066 9 357

PLI001 DOP 78287 74590 79169 77349 2 5910

FLI024 CALCITE- HARYANA 80353 84704 87113 84056 2 8004

PLI005 DINP 62406 55927 61184 59839 2 3625

PLI003 ESO-IVAMOL SN 953 855 539 782 1 43

The above data are collected only for PVC Family Products. The

Inventory carrying days in certain materials shows very high i.e 1997

days , while various items have at least 1 or 2 days inventories.

On the basis of internal data collection and personal interviews, various

reasons found behind these un unique inventory carrying days. There

are various reasons given :

1. In Imported materials procurement time ( Lead time ) are different

from countries to countries. Arrivals are not certain.

2. Minimum Pack size : Henkel has to buy minimum Size packing .

For Example, Silquest A 1100 ( Item Code APF030) standard

minimum packing size is 18 Kgs pail but monthly consumption is

only 1 Kgs per month. Hence purchase of 18 Kgs pail become

compulsory.

3. Minimum Order lot Size : In certain imported Items, importers

accepts only minimum lot size order. For Example - DEGALAN

UC 506, (Item Code PRF029), minimum order lot size is 1 pallet i.e

7500 Kgs per pallet. While consumption is 121 Kg p.m.

92

4. Non regular customers orders : it is also a mazor concern for

increasing inventory carrying days.

5. Certain times it is also observed that some materials were ordered

extra to make a complete FCL (Full container Load).

6. In case of indigenous Raw materials, Henkel is following the best

Inventory control practices like JIT. Mazor Bulk and fast consuming

items has only 1 to 8 days inventories . For example DOP, DINP

and Calcite.

7. Still in some of Indian materials, Inventories carrying days are

higher like in case of Miconcarb 2 Micron or Tio2 or Exxsol D 80.

In such time of Items, Henkel should Follow strictly on JIT and

inventory carrying days can be reduced further.

8. Majority of Higher Inventory carrying days is in Imported Items.

Hence Henkel should focus on more and more on Purchase of

Imported items by the application of advanced Inventory controlling

tools like SAP (Although ERP is there) , JIT, KANBAN etc.

Ordering for FCL can be avoided etc. Lead times further need to

reduction.

93

After data collection in chapter – 3 (b), next was mapping the value

addition process to get the understanding of material flow for a few

products. The value stream mapping shows that most of the time

material is lying in stores in the lead time of conversion to finished

goods. This is happening mainly due to significant amount of imported

materials used in the process.

Value addition process has been divided into two stages for better

analysis of wastage.

1. Gate entry to material charging in the machine

2. Material charging in the machine to finished output

Establishing material wastage from material charging to finished

output

Material mass balance –

First of all we tried to determine the material loss taking place in the

machine. For that we chose a product TLN 5955 on HT#2 machine.

94

Analysis of possible mode of failure:

• Failure in bottom valve leakage

• Wrong Qty. Charging

• Bags are not emptied out completely

• Super 40 Exotherm not checked

• Synpol 125 / ESO wrong qty. addition

• DOP/DINP charging through heat exchangers may get

moisturized & affect bonding.

• Improper Chiller temperature

• Loose barrel with contamination and make-up with fresh batch

leading to customer complaint

Bottom valve of vessel closer

Vacuum checking

DOP Charging via Heat Exchanger

Exxol D80 charging

Sympol 125 / ESO Weighing

Sympol+ESO charging

Mixing for 5 minutes

Charging of powder RM

Mixing

DOP Charging via Heat Exchanger

DOP Charging via Heat Exchanger

Mixing

Cooling

Check

Temp.

PVC Charging

Maturation

DOP Charging via Heat Exchanger

Drum Arrangement

Filtration/Discharging Particles

Checking

Spillage

Spillage

Air Lose, Sticking loss

Sampling loss

Air Lose, Sticking loss

Spillage, Line Retention Loss Sticking losses

Check Homog. &

Temp.

Mixing

Check Homog. &

Temp.

Sampling loss

Check

Viscosity

.

Check

Viscosity

.

95

• RTD is not showing exact Temperature

• Non calibrated Thermometer & Load Cells and Weighing Balances

• Temperature of the batch in not checked before further processing

• Filter bypass result‟s particle in batch

• PM schedule is not followed.

• Excess usage of Plasticizers in Machine / Drums / Filters Cleaning

than required

• No Recording and No Continuous controlling on usage of

Plasticizers for cleaning purposes.

• No recording of Material Drawn for Machine washings and filter

cleanings.

• No recording of Short receiving incomings.

• No recording for Excess Plasticizers consumptions for viscosity

adjustments.

Physical observation:

Oil Observations :

• Cabosil M-5 Powder

Oil Absorption: (spec 350-450 ml/100 gm)

Quality Result : 380 ml/100 gm

• Neolite SP Powder

Oil Absorption: (spec 26-32 ml/ 100 gm)

Quality Result : 30.37 ml/100 gm

96

• Calcite Powder

Oil Absorption: (Spec. 26-30 ml/100 gm)

Quality Result : 28.06 ml/100 gm

Moisture content: Calcite Powder

Specs : Spec 0.5% max

Quality Result : 0.16 %

Table 1:

B.No. Total

Input

Total

Out put

Losses in

RM bags

& air lose

during

charging

Wastage

in

sampling

Sticking

losses in

vessel

Material

remained in

filter

Total

Difference

Input-output

DOP used

for cleaning

The vessel

Output after

cleaning

Unaccounted

losses*

In Kg In Kg In Kg In Kg In Kg In Kg In Kg In Kg In kg In kg

4141 3954 3534 4 0.05 Not

checked

added into

next batch

22 420 Nil Nil 25

4142 3964 3961 4 0.05 10 79 3 110 365.3 23

4141

+

4142

7918 7495

(94.65%)

8

(0.10%)

0.1 10 101 423 110 365.30 48

The table implies that material wastage from material charging to

finished output is around 0.56% of the input mass.

A Separate Mass balance study was also conducted specially for

Plasticizers :

Please see the attached diagram for Process Flow and Material Mass Balance

Mapping for Plasticizers.

97

98

Possible Failure Modes

• Excess usage of Plasticizers in Machine / Drums / Filters Cleaning

than required

• No Recording and No Continuous controlling on usage of

Plasticizers for cleaning purposes.

• Leakages and spillage in Plasticizers valves and Tapes.

• Weighing Error in Balances.

• No recording of Material Drawn for Machine washings and filter

cleanings.

• Malfunctioning in Load Cell of DOP / DINP Tanks.

• No recording of Short receiving.

• No recording for Excess Plasticizers consumptions for viscosity

adjustments.

• No recording of Plasticizers used for churning of Finished goods.

• Inferior quality of Plasticizers.

Below is the project report conducted on Plasticizers : Before

Monthly Consumption

Material used as per MRS

Material used without MRS

Wastage

Month Percentage

Aug.10 168650 166342.7 2307.3 1.37

Sept 10 158863 157056.9 1806.1 1.14

Average 163756.5 161699.8 2056.7 1.25

99

After

Monthly Consumption

Material used as per MRS

Material used without MRS

Wastage

Month Percentage

Oct. 10 169036 167924 1112 0.66

To achieve the above results : following actions were taken :

1. Issuing of MRS for less than 0.5 % of Short receipt of Liquid

Materials.

2. Removal of two Loose points from Storage tank behind DPM &

Sigma.

3. Controlling and Issuing of MRS for Machine Cleaning at 64 IDC &

Others.

4. Corrections in Conversion Factors with respect to Sp. Gravity In

ERP

5. BOM Correction for Extra Plasticizers being used in addition to

BOM

6. Controlling & Rationing of Plasticizers being used for Floor

Cleaning & MRS Issuing by recording in Register.

100

7. Recording of Qty of liquids being used in Machines (Sigma/ DPM/

TRM/ Churner/Kneader) Cleaning in both plants and Blender

Washing at 74 IDC.

8. Routine Calibration of Load cell and Weighing Balances being

used for Plasticizers weighing. Weekly checking & Error correction

of Weighing Balances

9. Recording of Plasticizers used in Filter Cleaning and Churning of

F. Goods

10. Following Action Taken sheet was applied for this project.

Grey Area required for Action Starting

Date

Closing

Date

Responsibility %

Completion

Issuing of MRS for less than 0.5 % of

Short receipt of Liquid Materials

Removal of two Loose points from

Storage tank behind DPM & Sigma

Controlling and Issuing of MRS for

Machine Cleaning at 64 IDC & Others

Corrections in Conversion Factors with

respect to Sp. Gravity In ERP

BOM Correction for Extra Plasticizers

being used in addition to BOM

Controlling & Rationing of Plasticizers

being used for Floor Cleaning & MRS

Issuing by recording in Register.

Recording of Qty of liquids being used

in Machines (Sigma/ DPM/ TRM/

Churner/Kneader) Cleaning in both

plants and Blender Washing at 74 IDC.

Routine Calibration of Load cell and

Weighing Balances being used for

Plasticizers weighing. Weekly checking

& Error correction of W. Balances

Recording of Plasticizers used in Filter

Cleaning and Churning of F. Goods

101

Establishing material wastage from material gate entry to material

charging

ABC analysis of raw material inventory:

In order to get the best representation of materials movement, an ABC

analysis was done on the basis of monthly usage. Out of total monthly

material handling of around 667,000 kg four raw materials i.e. Calcite,

Neolite SP, DOP and DINP constituted around 89 %.

Raw Material

Category

Monthly

consumption (In MT)

Percentage

contribution

Fillers 330 44

Plasticizers & Solvents 210 28

PVC Resins 127.5 17

Adhesion Promoters 30 4

Rubbers 11.25 1.5

Stabilizers 7.5 1

Thixotropic Agents 3.75 0.5

Miscellaneous 30 4

Total 750 100

Table – 1 : ABC Analysis

A mass balancing study was conducted for around 7 days to assess the

wastage of material and to determine the extent of reconciliation.

Procedure:

1. Take physical inventory of all the raw material at the beginning

102

2. Check the stock position in the ERP

3. Record consumption machine wise

4. Take physical inventory again

5. The value of “Beginning inventory –Consumption –End inventory”

gives an idea about losses.

Material HT#1 HT#2 Blender sigma DPM1 DPM2 ID76 64 IDC Total

Calcite 2043 1840 3850 955 749.55 1103 1525.4 57 12122.95

Neolite 2547 1760 2985 0 947.42 1711.89 68 31 10050.31

DOP 2390 2580 2935 0 54.16 0 67.05 10.64 8036.85

DINP 625 0 130 612.44 726 1221.9 956.46 4271.8

Table 2: Consumption of raw material from 18-09-10 to 25-09-10

Material

Current status of

raw material physically as on 18-

09-10

New receives

Consumption

Status of raw material physically as on 26-

09-10

Unaccountable material

%age loss

Calcite 19580 15000 12122 22405 123 0.27

Neolite 37560 18000 10050 45250 260 0.692225772

DOP 14543 16000 8500 20686 1357 9.330949598

DINP 8231 16000 4271.8 19759 200.2 2.432268254

Table 3: Tabulation of unaccounted materials

Material

Current status of raw material physically as on 18-09-10

Current status of raw material in ERP as 0n

18-09-10

Status of raw material physically as on 26-09-

10

Status of raw material in ERP as on 26-09-10

Calcite 19580 19619.56 22405 17992

Neolite SP 37560 40608 45250 47439

DOP 14543 15786 20686 19558

DINP 8231 9125 19759 17972

Table 4: ERP vs. Physical inventory

103

Outcomes of the exercise:

1. Difference has been noted between physical inventory and the

stock position in the ERP system.

2. Stock position on subsequent day would exceed previous day

position without any discernable statement in ERP

3. Different stock position was observed in different navigation

screens of ERP system.

4. There is no provision to record the returned material receipt (MRN)

in ERP system which makes reconciliation little difficult.

5. Difficulties were faced in taking physical stock position due to

material being placed in so many places.

6. More than one sacks/bags were found opened at all the machine

locations making inventory measurement job little difficult. It is one

of reasons of material wastage as well.

7. Measurement of liquid items was little difficult due to the absence

of flow measurement device in the line.

104

CHAPTER – VI

CONCLUSION & RECOMMENDATION

105

Following suggestions for improvement in existing process may be given

Better application of existing inventory management procedures should

be coupled with education programs for purchasing personnel on the

problems and costs of disposing of excess materials. Additionally, the

set expiration dates on materials should be evaluated, especially for

stable compounds, to see if they are too shot. Another approach to

inventory control is to purchase the material in the proper amount and

the proper size container. If large quantities of a material are used, then

purchasing it in bulk will produce less waste, both I product loss and

empty packaging, than if it were purchased in drums or bags. On the

other hand, small containers may be better than bulk purchases if the

material has a short shelf life or is not used in large amounts. If surplus

inventories do accumulate, steps should first be taken to use the excess

material within the plant.

The ultimate in inventory control procedures is just-in-time (JIT)

manufacturing, since this system eliminates the existence of any

inventory by directly moving raw materials from the receiving dock to the

manufacturing area for immediate use.

The summary :

1. There are large import inventories lying at Henkel from so

many days. Either they are slow moving or they are dead.

Henkel should focus on JIT by reducing the Lead time and

by reducing the minimum inventory level and by reducing

the order size.

106

2. Although Henkel India is exploring and developing the

local sources for Imported raw materials but pace of

developing is slow. For Example – Phthalic Anhydried is

available in India.

3. Process improvement for waste reduction during value

addition process.

4. Better visuals required for identification of different raw

materials and finished goods.

5. For better material identification and reconciliation, all

cartons/sacks to be given a unique sequence number and

consumption to be done in that sequence only. A few

steps have already been discussed with Manger Stores in

this regards how to go about this.

6. Strengthening of ERP system is required for better

reconciliation of raw materials.

7. Devise methods to avoid double or triple handling of raw

materials.

8. Relocation of a few machines and testing facilities to 64

IDC from 74 IDC so that made up space is utilized for

keeping raw material so as to avoid unnecessary material

movement.

107

9. Procurement of bins to keep the torn bags into that.

10. Do not throw the bags from large distances.

11. Regularly standard weight of packings should be

verified by weighing of lots or each and every bag.

12. Inculcating discipline among workers to consume “in

hand” material first before re issue of fresh material.

This will help in reducing material wastage as well as

better material tracking.

13. Installation of flow meters in the liquid lines.

14. Preventive Maintenance schedule is to be strictly follow

15. More control on Plasticizers for cleaning purpose is

needed.

16. Periodically Calibration of Load cells, Vacuum

Gauge ,is compulsory. Workers should also be aware.

17. Quality management system is in place. Strict

adherence is required.

18. Material wastage is happening mainly on account of

scrap generation. Reducing scrap generation needs

serious consideration. Special projects are required for

the same.

108

19. All the incoming Raw Materials viz. Indian and

Imported should be tested before the approval of

quality, no material should be use.

20. In job training is being imparted periodically on

Quarterly basis. It is required on monthly basis.

21. 5S activities are very poor in store. Very poor House

Keeping on shop Floor as well as in Store. More

training is needed.

Inference:

1. Space constraint

2. Multiple storage location

3. Double or triple material movements.

4. Employee training for raw material handling is required

5. Use of raw material for cleaning of reactors.

109

110

CHAPTER – VII

COMPANY PROFILE

111

Henkel Teroson India Limited (HTIL) is a 200 Crore company with 51:49

Joint Venture company of Henkel KgaA, Germany and Anand Group.

Henkel KgaA is a 24 Billion US Dollar company with vide range of

product portfolio including Automotive Sealants , Adhesives and

Coatings, Car Care products , Detergents, Cosmetics and other

Industrial Chemicals.

Anand Group is the leading Auto Component Manufacturing Group in

India comprising of Companies-M/s Gabriel India Limited, Mahale Filters

India Limited, (previously Purolator India Ltd) , Perfect Circle Victor

Limited , Spicer India Limited, Behr India Limited

The Major customers of HTIL are : Maruti Suzuki India Ltd, Hyundai

Motors, Honda Motors, Tata Motors, Toyota Motors, Volkswagen,

Mahindra & Mahindra, General Motors, Ford India Ltd, LML Ltd etc. It

has approx. 70 % Market Share in Indian Automotive Sealants and

Adhesives business.

Henkel Teroson India Ltd. has 5 manufacturing Plants in India. There are

two plants in Gurgaon to cater North Indian Automobile companies

Maruti Suzuki India Ltd in Gurgaon and Honda Seil Motors in Noida.

HTIL‟s Chennai plant feeds Hyundai Motors, Toyota Motors and Ford

Motors while HTIL‟s Pune unit caters Tata Motors, Volkswagen Motors

and General Motors. Among all the 5 Plants, Henkel, Parwanoo plant is

smallest plant and produces only one product – Direct Glazing Sealant

(DGX). It supplies DGX sealant to all the Indian Automobile companies

as well as it imports DGX sealants to China origin companies.

112

All the Indian Branches of HTIL are TS 16949 certified companies by

RW TUV Germany, and also has Technical License from Sunrise MSI

Corporation , Japan, for Automotive Sealants and Adhesives.

Gurgaon Plant -1 ( 74 IDC) is the Head office and all the top

managements resides in Gurgaon. This central Plant provide all type of

necessary help to all the locations as and when required like Technical

assistance , Customer Support, Product Support and logistic & Raw

material support.

Certain times, in any emergency due to any reason, Gurgaon Units

provide all type of support to all the locations.

There are 65 Staff members employed in Gurgaon‟s central plants. All

the staff members are well educated and trained in their responsibilities

and manpower retention is 85 %.

113

BIBLIOGRAPHY

114

Reference / Bibliography

1. Operations management by Stevenson

2. Supply chain management by Chopra, Mendel and Kalra

3. The management and control of quality by James R Evans,

William M. Lindsay.

4. Lean Evolution : Lessons from the workplace by Nick Rich, Ann

Esain, Nicola Batman.

5. A Revolution in Manufacturing : The SMED System, Shongo,

Shigeo, Productivity Press, 1985,p5

6. Energy audit reports of National Productivity Council

7. Energy Management Handbook, John Wiley and Sons - Wayne C.

Turner

8. Operational Research - V K Kapoor

9. Management of production system - Manohar L Gulati

10. Research Methodology - CR Kothari