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INDUSTRIAL VISIT REPORT

AT

PARLE PRODUCT PVT. LTD, NEEMRANA

JAIPUR INSTITUTE OF MANEGEMENT STUDIE, JAIPUR

SUBMITTED TO: DR. R.K. SHARMA (PRINCIPAL)

SUBMITTED BY: MAHENDRA PAL SINGH

MARCH 2010

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INTRODUCTION

INDUSTRY

Indian Biscuit Industry: According to Indian Biscuit Manufacturers' Association


(IBMA), after stagnating growth of about 14 per cent in 2006-07, biscuit industry
grew by 17 per cent in 2007-08 due to excise duty exemption on biscuits with MRP
up to Rs 100 per kg, Indian Biscuit Manufacturers Association. ). Therefore, Indian
biscuit industry has demanded a reduction in value added tax to four per cent from
the current level of 12.4 per cent on biscuit, so that the growth rate can go up to 20
per cent.

The Rs 8,000-crore industry hopes that the biscuit segment will have over 20 per
cent annual growth in the next five years if VAT is reduced to four per cent

India, world's third largest biscuit producer after the US and China, produces nearly
19.5 lakh tonnes annually and the states, however, have imposed the VAT at 12.5
per cent, which is very high.

According to IBMA, organised sector produces around 55% and the balance 45%
being contributed by the unorganised bakeries. In terms of volume biscuit
production by the organised segment in 2006-07 is estimated at 1.47 million tonnes.
Per capita consumption of biscuits in the country is only 1.8 kg, as compared to 2.5-
5.5 kg in the South Eastern countries, and in Europe and US, respectively.
In India per capita consumption of biscuits is estimated at a low 1.9 kg, reflecting
the huge potential for growth of the industry. Over 900 million Indians buy and eat
biscuits with varying frequency in any year.

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The penetration of branded product in this segment is quite significant, and is
valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as
developed as the biscuits industry. The biscuit segment has developed with large
markets of mass consumption covering over 90% of the overall potential market.
The unorganised sector accounts for over 50% of the market. The market has been
growing at a CAGR of 6-7% pa.
Biscuit is a hygienically packaged nutritious snack food available at very
competitive prices, volumes and different tastes. According to the NCAER Study,
biscuit is predominantly consumed by people from the lower strata of society,
particularly children in both rural and urban areas with an average monthly income
of Rs 750.

Bread and biscuits are the major part of the bakery industry. Biscuits stand at a
higher value and production level than bread.

India Biscuits Industry came into limelight and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called
for readymade food products at a tenable cost. Biscuits were assumed as sick-man's
diet in earlier days. Now, it has become one of the most loved fast food products for
every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and
reasonable at cost. States that have the larger intake of biscuits are Maharashtra,
West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and
West Bengal, the most industrially developed states, hold the maximum amount of
consumption of biscuits. Even, the rural sector consumes around 55 percent of the
biscuits in the bakery products.
The annual production of biscuit in the organized sector continues to be
predominantly in the small and medium scale sector before and after de-reservation.

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Confectionary Industry

Production area
besides the industrial areas in leading metropolis the bakery product &
confectionery are carried on small- scale basis also at household level.
Whereas, the confectionery industry has developed remarkably with the
international brand mingling with the domestic market toffees, chocolates etc.
produced at large scale in important industrial regions of the country.

Growth promotional activities


In 1977- 78 Government reserved the confectionery bread and biscuit
manufacturing for small scale and restricted entry of large producers. During the
last 2 decades, small and unorganized players shared the growth in the industry.
Currently, there are an estimated 2 million bakeries across the country engaged
in production of bread, biscuits and other products The Indian confectionery
market is segmented into sugar-boiled confectionery, chocolates, mints and
chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy,
toffees and other sugar-based candies, is the largest of the segments and valued
at around Rs 2,000 crore.
The confectionery industry has a current capacity of 85, 000 tonnes, the
market is growing at the rate of 10-15% per annum. The estimated annual
production of bakery products in India is in excess of 3 million tonnes, of which
bread accounts for nearly 50% and biscuits 37% in volume terms in the
organized sector. The bakery sector in India is one of largest segments of the
food processing industries; annual turnover in value terms is approximately $
900 million.

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Types
Chocolates, hard-boiled sweets, chewing gum and other products are a major
growth area. The bakery industry includes basic baked products like breads,
biscuits, cakes, pastries, rusks, buns, rolls etc.

The Confectionery Industry in India was a closely held business potential for
several decades in the past predominantly driven by cost factors and limited
market and consumer perceptions. Confectionery product being an impulse
generated demand exercise was more dependent on trade push and intermittent
consumer pull thereby resulting in very narrow spectrum of brand activity. The
retail and market penetrations even today continue to be in the rural and semi
urban and urban markets where bulk of the sales activity takes place through B
and C class outlets. Confectionery being a child-oriented product, it is largely
sold by individual counts at the retail trade level. The potential child consumer
for this category of products in the past was largely influenced by the relevant
socio-economic factors and media explosions.

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Organization
Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute baby
photo containing 10-12 biscuits with the company‟s name printed with in Red.
Times changed, variety of biscuits did come and go but nothing has changed with
these biscuits. Yes, the size of their packing has definitely changed but for the
consumer good as these are money saver packs.
The Parle name conjures up fond memories across the length and breadth of the
country.
After all, since 1929, the people of India have been growing up on Parle biscuits
and sweets.
Initially a small company was set up in the suburbs of Mumbai city to manufacture
sweets and toffees. The year was 1929 and the market was dominated by famous
international brands that were imported freely. Despite the odds and unequal
competition, this company called Parle Products, survived and succeeded by
adhering to high quality and improvising from time to time
A decade later, in 1939, .Parle products began manufacturing biscuits, in addition to
sweets and toffees. Having already established a reputation for quality, the Parle
brand name grew in strength with this diversification. Parle Glucose and Parle
Monaco were the first brands of biscuits to be introduced, which later went on to
become leading names for great taste and quality.
For around 75 years, Parle have been manufacturing quality biscuits and
confectionary products. Over the years Parle has grown to become a multimillion
dollar company with many of the products as market leaders in their category. The
recent introduction of Hide & Seek chocolate chip biscuits is a product of
innovation and caters to a new taste, being India‟s first ever chocolate chip biscuits.

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Apart from the factories in Mumbai and Bangalore Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit
and confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract.
All these factories are located at strategic locations, so as to ensure a constant
output and easy distribution.

Brands
An in-depth understanding of the Indian consumer psyche has helped Parle evolve a
marketing philosophy that reflects the needs of the Indian masses. With products
designed keeping both health and taste in mind, Parle appeals to both health
conscious mothers and fun loving kids. The great tradition of taste and nutrition is
consistent in every pack on the store shelves, even today. The value-for-money
positioning allows people from all classes and age groups to enjoy Parle products to
the fullest.
Biscuit goodies: Confectionary:
Parle-G GolGappa
Krackjack Classic Mint
Monaco Lite Mint
Monaco Funion Kismi
Kreams Orange Candy
Hide and Seek Mango Bite
Hide and Seek Milano Melody
Poppins
Eclairs- 50 p
Bourbon Melody Softe- 1Rs.
Kismi Bar
Parle Marie Chox
Kacha Mango
Milk Shakti Mazelo
Imli Bite
Kismi Gold
Parle 20-20 Cookies Munch on snacks:
Nimkin Musst Bites

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Parle biscuits: Parle biscuits are linked with factors of power and wisdom
providing nutrition and strength. Parle biscuits are indeed much more than a tea-
time snack, they are considered by many to be an important part of their daily food.
Parle can treat you with a basket of biscuits which are not only satisfying but are
also of good and reliable quality. Parle biscuits cater to all tastes from kids to senior
citizens. They have found their way into the Indian hearts and homes.

Parle G

For over 65 years, Parle G has been a part of the lives of every Indian. From
the snow capped mountains in the north to the sultry towns in the south, from
frenetic cities to laid back villages, Parle G has nourished strengthened and
delighted millions. Filled with the goodness of milk and wheat, Parle G is not
just a treat for the taste buds, but a source of strength for both body and mind.
Tear over a packet of Parle G to experience what has nourished Generations of
Indians since last sixty five years, making it truly Hindustan Ki Taakat.

Pack Sizes available: 16.5gm, 38.5gm, 60.5gm, 82.5gm, 99gm, 209gm,


313.5gm, 418gm, 825gm

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Krack jack

The original sweet and salty biscuit is one of the most loved biscuits in the country.
It‟s not just a biscuit, it‟s the taste of relationships captured in a biscuit.
A little sweet and a little salty crafted in such a delicate and delicious balance, you
can never get enough of it. Have it anytime you like with anything you like. Pack
Sizes available: 75gm, 170gm, &240gm

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light
crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to life‟s
ordinary moments. Pack Sizes available: 75 gm, 120 gm & 240 gm

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Hide and Seek

The ingredients that go into making this prized cookie are a well-guarded secret.
What is is the effect it has on those who eat it. A cookie with a reputation for
romance. Indulge in the sinful taste of Milano and everything that follows it. Pack
Sizes available: 25 gm, 62 gm, 100 gm, and 200 gm

Hide and Seek Milano

The ingredients that go into making this prized cookie are a well-guarded secret.
What is is the effect it has on those who eat it. A cookie with a reputation for
romance. Indulge in the sinful taste of Milano and everything that follows it. Pack
Sizes available: 65 gm, 135 gm

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Kreams

Orange: Tickle your senses with Parle Orange Kream – The tangy orange cream
between two scrumptious biscuits makes for a real treat.
Age no bar!

In Parle kream also some teats available like Elichi, pineapple, mango. these kream
biscuits available in same packing size.

Pack Sizes available: 80 gm, 90 gm, 160 gm, and 180 gm

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Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat category
of the Parle product range is a genuine treat for every snack lover. This category
can satisfy one's taste and at the same time create a desire for more. These
confectioneries are a sheer delight to the taste buds and have a universal appeal.
Parle Biscuits and confectioneries, continue to spread happiness & joy among
people of all ages

.Melody

Caramel meets chocolate to yield an outcome nothing less than delectable.


Parle Melody comes with an irresistible layer of caramel on the outside and a
delightful chocolate filling within. Pop it in your mouth and relish the unique
experience. It won‟t be too long before you find yourself asking the age old
question „Melody itni chocolaty kyon hai?'

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Mango Bite

Need a quick escape from everything ordinary? Just pop a Mango Bite and dive
into a tropical mango paradise. Sit back, roll it around and enjoy one wave after
another of juicy mango treats that go on and on and on.

Kachcha Mango Bite

The glider got copied and became a jet plane. Western hits got copied and
became Anu Malik songs. The typewriter got copied and became a keyboard.
Similarly, we have managed to copy the tangy flavour of raw mangoes in a
candy which is a little sour, a little sweet and certainly a little mischievous. We
call it Kaccha Mango Bite. It truly is a „kacche aam ka copy‟.

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Kismi Toffee

It‟s everything that the Kismi Toffee Bar is, only smaller. Wrapped in the
distinct flavour of elaichi (cardamom) this toffee is sure to send your sweet
tooth on a joyride.

Golgappa

Mention Golgappa to lovers of roadside snacks and watch them get excited.
Just the very memory of the sweet tangy taste of Golgappa is enough to make
the taste buds tingle, the mouth water and the senses to party. Now imagine if
you can have the Golgappa whenever and wherever you want it, even as you
are reading this, for example. It is possible with Parle Golgappa. It captures the
same magic of the popular street side Golgappa in a Goli or a hard boiled
candy, if you prefer. So pop in a Golgappa and treat your senses to a fun filled
trip, whenever and wherever.

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Parle Snacks:
Salty, crunchy, chatpata and crispy caters to the bunch of Parle snacks. Parle
snacks are a complete delight to the taste buds and can create the desire for more
and more. These snacks will not only satisfy your tummy but will also sustain a feel
in your mouth to associate you with the bond of Parle.

Musst Bites

Cheesy fluffy baked snacks that are so irresistible that you don‟t want to share
them. Available in mouthwatering Garden Spices, sweet and sour Tangy
Tomato, tantalizing Chatpata Chat and heavenly garden spices, you are going
to have a hard time deciding which one you want for yourself.

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PARLE PRODUCTS PRIVATE LIMITED

Many of the Parle products - biscuits or confectioneries, are market leaders in


their category and have won acclaim at the Monde Selection, since 1971. With a
40% share of the total biscuit market and a 15% share of the total confectionary
market in India, Parle has grown to become a multi-million dollar company.
While to consumers it's a beacon of faith and trust, competitors look upon Parle
as an example of marketing brilliance. Parle G, a premium glucose biscuit is the
world‟s largest selling biscuit.
A factory of these glucose biscuits is situated in Neemrana is producing 7000
metric tonnes every month. A list of premium quality biscuits and
confectioneries is produced and distributed across nations.

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We visit the Parle industry in NEEMRANA. Parle is a big biscuit manufacturing
industry in India. They provide world class quality biscuit to there customer.
This industry giving us very important knowledge about the industry culture.
I give u my personal view about the PARLE. When I visit this industry.

The plant‟s boundaries and grounds secured to prevent entry by unauthorized


Persons. Positive identification is required to control entry of visitors to the plant e.g.,
picture IDs or sign-in/sign-out at entrance. They provide self locker to us for our
mobiles & bags. Because mobiles are not allow in the industry. There is sufficient
outside lighting to allow detection of unusual activities on any Part of the
establishment outside premises during non-daylight hours. Emergency exits have self-
locking doors and/or alarms in industry and also securities system like Heating,
Ventilation, Air Conditioning systems, Propane Gas, emergency alert systems
Disinfection systems, Clean-in-place (CIP) systems, Water systems. After that we
enter in industry waiting room. We look there a chart of organizational structure.

MD

GM

ENGINEER FINANCE
PRODUCTION PRINTING DEPUTY
MANAGER HR MANAGER MANAGER
MANAGER MANAGER MANAGER

SENIOR SENIOR
SHIFT INCHARGE SHIFT ENGINEER SUPERVISOR
EXECUTIVE EXECUTIVE

SUPERVISOR WORKER WORKER EXECUTIVE

WORKER ADMIN

IT

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Vijay k. Chauhan is the Chairman& MD of Parle industry.

Parle industry follows the Japanese 5s theory. The 5s theory is Gateway to Quality,
Productivity, and Safety.

Seri (Say ree) - Sort and Discard


Eliminate All unneeded items.

Seiton (Say ton) - Arrange and Order


Arrange all items that are left.

Seiso (Say zo) - Clean and Inspect


Clean all areas.

Seiketsu (Say ket soo) - Standardize and Improve


Maintain the first 3S

Shitsuke (Shee tsoo kay) - Believe and Discipline


Believe that the 5S are important.

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A parson with a formal industrial uniform appoint to us for industrial visit. He told us
all the process of manufacturing biscuits.
He told us these processes step by step. He also gives the answers of our question.
The Parle industry, NEEMRANA manufacturing PARLE G biscuits. So he told how
the Parle G biscuits manufacture?

Parle-G making process


MIXING: This is a process where all ingredients are put together in right proportion for
dough formation. These ingredients are then fed into Mixers where mixing is done and
dough is prepared for molding .Major ingredients are flour, fat, sugar and others as per the
product one would like to have.

MOULDING: In this section we laminate the dough into sheet which then passes down to
gauge rollers and sheet thickness achieved for cutting. Here we have a cutter or a molder
as per the variety where one gets the shape and sizes of biscuits.

BAKING: This is the area where we pass these mounded wet biscuit into baking oven.
The oven temperature is 230°C. The biscuits are baked on desired temperature. The oven
which are use very effective.

COOLING: These baked biscuits are then passed on to cooling conveyors for natural
cooling prior to packing .The temperatures are brought down to room temperatures.

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PACKING: These biscuit are then stacked and fed into packing machine for packing.
Different packing material are available for packing of these biscuit in different packs
.slug packs, pouch pack or family packs etc. These packs are then put into secondary
packaging like cartons to be transported to retailers.

EQUIPMENT USED FOR AUTOMATED BISCUIT MANUFACTURING

Mixers

Laminators

Gauge Rolls or Pre Sheeters

Molder / Cutter

Baking Oven

Cooling Conveyor

Packing Machines

Material Handling Equipments

Biscuit / Sugar Grinder

Milk/Oil Sprays

Salt / Cashew Sprinklers

INGREDIENTS USED

Flour , Fat , Sugar , Salt , Ammonium bicarbonate , Milk , Butter , Flavors , Emulsifiers ,
Invert syrups, Dough Improvers and many additives.

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Process of packing paper printing

Plain BOPP (Bi oxalic polypropylene)


Printed by ink


Inspection (defect eliminator)


Lamination
(Lamination & opaque BOPP with adhesive)


Curing Room
(Lamination reel treated at 45-50°C for curing)


Slitting
(Lamination reel sited in roll form as per requirement)

↓ ↓
Ok not ok

↓ ↓
Dispatch to store ← Doctoring

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After all the process we go to in next candy manufacturing plant of Parle. In this
plant Parle manufacturing two type candies.
1. Lacto bite
2. Kaccha Mango Bite

Candy Manufacturing

This is candy manufacturing process:

o Candy Mixing and Cooking


o Candy Aerating
o Candy Molding
o Candy Stamping
o Candy Drawing
o Candy Cooling
o Candy Coating
o Automatic Decorators

Candy Mixing and Cooking


Cooking vats are used for candy mixing and cooking. They are sophisticated pieces of
equipment and can be integrated with mixers and cookers. These types of machines are
often used in hard candy and chocolate candy manufacturing. They have variable speed
agitators, hydraulic lifts, digital temperature controllers with alarms, sophisticated
atmospheric gas burners as well as tilting functions. The vats are often insulated and
designed of foam fitted aluminum without rivet joints. They are one of the first pieces of
equipment used in many candy manufacturing processes.

Candy Aerating
Marshmallows, snowballs and aerated chocolate are examples where aeration technology
would be used. Each application can use a specifically designed mixing head. These
devices also facilitate perfect temperature control during the aeration process.

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Candy Molding
Three popular molding techniques include polycarbonate injection molds, thermoformed
spinning molds and silicone rubber molds. These types of molds are often used in the
manufacture of chocolate candy.

Candy Stamping
stamping is done with dies that cut the candy to shape from a slab. An example is in the
manufacture of chocolate or taffy.

Candy Drawing
The drawing of candy is similar to the drawing of metal or plastic. A candy bullion is
pulled through a series of dies reducing it in size or forming its perimeter to a shape. The
dies can be temperature controlled to help in the process.

Candy Cooling
Cold water is often used to cool the equipment that actually is in contact with the candy.
Through this the candy is kept cool as it is manufactured. An example is in the cooling of
forming and drawing dies. Other solutions include the use of a refrigerant.

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Candy Coating
Enrobe machines are used for coating candy. For example the delicious thin coating found
on chocolate coated cookies or a candy bar is often applied by an enrober. Some of these
machines are extremely sophisticated and can be quite large. They are of manufactured
from stainless steel and designed to run 24/7. They contain pump units and high end ones
are packed with advance electronics to optimize chocolate consumption minimizing
waste. This can be a big money savor.

Automatic Decorators
These machines as the name indicates are used in decorating candies and cakes. The
decorators apply icing or chocolate designs on cookies, cakes, other baked items and
chocolates. Designs range from thick to thin, zig zags to curves, straight lines to single
and double loops, cross-hatching and random designs. Designs can often be changed
rapidly to afford a variety of decorated product. Decorators can be often custom designed
to fit most speeds and sizes of conveyors or enrobes.

Candy Wrapping and Packaging


wrapping machines are another category of candy manufacturing equipment. Some
wrapping machine manufactures also offer art work consulting as a service. This allows
the customer to custom design a wrapping for their candy as well as wraps it. An example
might be a foil holiday wrapper for a chocolate candy product. Also fitting into this class
of manufacturing equipment is high speed packing equipment and sealers. These solutions
include completely automated packaging systems capable of denesting, filling, tray
sealing, sleeving and cartooning. Some leading edge automated systems can seal at a top
speed of 400 ppm and load 800 bars per minute.

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After visiting all the plants we all the students go to Auditorium of Parle.
This Auditorium specially made for visitors. It‟s well furnished and all the facility
available in this Auditorium like computer system, projector, and Air conditioner.
400 to500 sitting capacity in this Auditorium.

Senior officers S.K. Jiana coordinate the program. He has given more knowledge about
Parle. He told us that the Parle is not a industry. This is a family.

They called “PARLE PARIWAR”. Because the working condition of Parle is very open
and creating a family environment. Every member of Parle working with effectively and
efficiently so they achieve their targets. In Parle family many types of activities conducted
day by day. Example Yoga, sports, cultural programs. Yoga is necessary for every member
of Parle.

After the entire thing we saw animated movie. It is based on Parle history and about all the
process of making Confectionary. We enjoy the movie. After that some cultural events
organized by all the students.

Example: - solo song, group dance and acting. We enjoy all the movements.

Then Mr. S.K. Jaina told a dream fixing plan.

After the entire thing our Principal DR. R.K. SHARMA give a feedback and PARLE
family give a certificate to our institution.

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ABOUT 5S JAPANESE THEORY

When Japanese industry was in its infancy stage, the Japanese market was too small to
absorb the increasing domestic production. Japan needed a global market in order to
further develop. By creating an export market, Japan was able to structurally transform its
economy, thereby granting it access to the technology it needed to develop.

The Japanese goal became one of full employment through industrialization. This called
for dominating the market in very select product areas. They carefully chose areas in
which they had the confidence to dominate and concentrated on them rather than diluting
their efforts over many areas.

A number of tactics were utilized to support this strategy. First of all, the Japanese
imported their technology, thus avoiding the risks involved with major R&D expenditures.
Instead, they negotiated license agreements to make workable new products. Then the best
engineering talent was directed to the plant floor rather than to the product design
department, thereby concentrating their ingenuity on high productivity and low cost rather
than innovative design. Finally, they strove continuously to improve quality and reliability
to the highest possible levels and then beyond; to levels competitors could not or would
not supply. Implementation of these tactics was guided by a solid respect for people and
the belief that waste must be eliminated (these two areas are discussed in depth below).

The Japanese example of success shows that neither massive research and development
investment nor abundant natural resources is necessary for sustainable industrial
development. For years Japan was well known as an imitator not an innovator as they
copied, borrowed, and licensed technology from other countries. By building competence
in adapting existing product designs and speeding up the processes the Japanese were able
to manufacture superior quality at competitive prices, giving them a distinct advantage in
world markets.

Japan showed the world that efficient production and quality control methods could
overcome transportation cost disadvantages and tariff costs. They proved that cultural

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differences could be overcome and that the critical cultural points necessary for successful
production could be transferred across national boundaries.

Japan's success as an economic superpower strongly implied that the West might lose its
world dominance as the leader in technology. Emboldened by the success of the Japanese,
other Pacific Rim countries began to follow their example, thus accelerating the diffusion
of innovative technology through-out the industrial world. Actually, new centers of
industrial superiority were created as a result.

Japan's success is also an indicator of the importance of quality as a strategic variable.


When it looked like Japan could only hope to carve out a niche as a producer of outdated
Western goods for the Asian market, Japanese leadership came to the conclusion that it
could play a leading role in global industry by changing its quality image; a change made
by producing quality goods for a sustained period of time. The Japanese learned from the
price they paid for their reputation for inferior-quality products. They learned that quality
reputations are built by producing quality products with a painstaking attention to detail
and craftsmanship. They were also willing to make the necessary investment in human
resources and technology needed to improve their quality image.

Synonymous with the improvement in quality was a profound improvement in Japan's


position in global markets. From a weak position in the television market in the 1960s,
Japan became the world's largest producer and exporter of household television sets in the
world. They are sure to dominate the market for the coming revolution in high-resolution
television. They totally dominate the VCR market and are challenging companies such as
Intel in the market for large-scale integrated circuits.

In the early 1960s North American, British, and German motorcycle manufacturers lead
the market. Today, Harley-Davidson is the only serious competitor for Japanese made
motorcycles. In fact, Harley-Davidson teetered on the brink of nonexistence until
wholeheartedly adopting Japanese manufacturing techniques, most notably just-in-time
and Total Quality Management. Another example, Xerox, suffered embarrassing market
share losses to Japanese manufacturers Canon, Sharp, and Minolta.

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The emphasis placed on quality by Japanese manufacturers has been continuous since the
inspiration derived from the first visit of Dr. W. Edwards Deming. Today, Japan is
certainly seen as the worldwide symbol of quality. While Western firms measure quality in
parts per thousand (the acceptable quality level or AQL), the leading Japanese
manufacturers are achieving defects that are barely measurable, perhaps 3.4 defective parts
per million. The Japanese turnaround in quality can clearly be attributed to such variables
as worker training, employee involvement, and firm wide delegation of authority and
responsibility for quality. A change in attitude and vision on the part of Japanese top
management brought quality to the forefront as a strategic mission, one that allowed them
to liberate the creative talent and resources necessary for long-term improvement and the
eventual mastery of the quality concept

RESPECT FOR PEOPLE

There are a number of facets to the Japanese respect for and treatment of workers. One of
the most prominent is lifetime employment, which gained notoriety from William Ouchi's
book "Theory Z". When many Japanese workers are hired for permanent positions in
major industrial firms, they can generally consider it a job for life. However, this kind of
benefit applies only to permanent workers, about one-third of the Japanese workforce. It is
felt that if workers can stay with one firm for life, they more easily identify with the firm's
goals and objectives.

Unlike the case for American labor unions, workers who are members of Japanese labor
unions identify more with the company than the type of work they are doing. Also,
Japanese unions tend to share the management's view. The better the company performs,
the more the worker benefits. As a result, Japanese management believes in giving the
workers more opportunity to expand their job boundaries rather than waiting until the
worker proves himself. The Japanese also spend more on education and training, for all
levels, than any other industrial nation. Also, because the Japanese believe that robots free
people for more important tasks, they have invested heavily in robotics and automated
equipment, making theirs perhaps the most automated manufacturing sector in the world.

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Another area in which Japanese management has successfully tapped into worker potential
is in the use of small group improvement activities (SGIA). One example is quality circles,
a small group of volunteer employees who meet once a week, on a scheduled basis, to
discuss their functions and the problems they are encountering. They then propose
solutions and make a sincere attempt to implement real change.

Finally, the Japanese believe in what they call "bottom round" management. This concept,
sometimes called consensus management or committee management, is an innate part of
Japanese culture. It involves a slow decision-making process that attempts to reach a true
consensus rather than a compromise. While the decision-making process is slow the
implementation process is quite fast.

ELIMINATION OF WASTE

When the Japanese say elimination of waste they mean anything other than the absolutely
essential minimum amount of workers, equipment, and materials necessary to meet
demand. This means no safety stock, no inventory stored for use in smoothing production
requirements, and so forth. If it can't be used right now it is considered waste.

A number of concepts are central to this idea of waste elimination. Instead of building a
large manufacturing plant that does everything, the Japanese tend to build small plants that
are highly specialized and form them into focused factory networks. It is difficult to
manage a large facility; the bigger it is the more bureaucratic it tends to be. Bureaucracy is
not conducive to the Japanese style of management. Also, a specialized plant can be more
economically constructed and operated.

Along with the idea of smaller plants, the Japanese make considerable use of group
technology. Japanese engineers examine each operation required to make a part and
attempt to group dissimilar machines into clusters designed to be work centers for a given
part or family of parts, thus eliminating or at least greatly shortening the time necessary for
set-up and changeover.

Just-in-time (JIT) production is an important part of waste elimination. In fact, JIT has
often been defined as the elimination of waste. JIT is the production of precisely the
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necessary unit in the correct quantity at the correct time in order to maintain perfect
performance to schedule. Over producing is considered just as bad as under producing
since unnecessary inventory would be wasteful.

In order for JIT to work effectively, production must flow smoothly. Any changes can
cause disturbances in the flow, which can be amplified throughout the supply chain,
causing disruptions and delays. In order to ensure a more uniform flow, the Japanese adopt
a uniform plant load. This means that they simply plan to build the same mix of products
each day. If you run some of everything you need each day, it only takes one day before
you have more (as opposed to large lot sizes which tie up capacity for lengthy periods,
causing delays in shipping).

Uniform plant loading requires that everything be produced in small lot sizes, implying
that the number of set-ups required will increase. The principle of economic order quantity
(EOQ) states that as lot sizes increase set-up costs decrease but as lot sizes decrease set-up
costs increase. Therefore, this emphasis on small lots requires that set-up times be
minimized. Instead of taking established set-up times as a given, the Japanese have
managed to reduce set-up times tremendously, often to the point of single digits (i.e., less
than ten minutes).

The Japanese also use a self-regulating system for production control known as kanban. It
uses dedicated containers and recycles traveling requisitions/cards (often known as
kanbans themselves) to regulate the system. It is also referred to as a "pull" system since
the authority to produce or supply comes from downstream operations.

Finally, the Japanese utilize a number of quality control techniques to ensure maximized
quality and minimized waste. Among these are jidoka, bakayoke, and poka-yoke.

Jidoka is a quality concept that means "stop everything" whenever an error occurs. It is
controlling quality at the source. Instead of using inspectors to find problems someone else
created, the Japanese worker is his own inspector, responsible for his/her own quality.
When an error or defect is discovered, the worker has the authority and the responsibility
to halt the production process. Usually, this is controlled by some mechanism such as push

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buttons. When the line stops, lights flash, bell ring, and flags wave as all attention is
directed at the problem.

The Japanese also believe that, whenever possible, inspection should be performed by a
machine, for the sake of speed and accuracy. A technique known as bakayoke is used for
this purpose. Bakayokes are devices that are attached to machines to automatically check
for abnormalities in the process, such as malfunction or tool wear, as well as measuring
dimensions and warning when tolerances are close to being exceeded. For manual
assembly, the Japanese utilize poka-yoke or mistake proofing.

Today, all these Japanese techniques have been repackaged and are now know as "Lean"
management techniques. Even though JIT, kanban, and other tools have not changed in
their application, the new "lean" label has removed some of the Japanese stigma and has
made the tools more palatable. With the introduction of the lean label has also come a
broader application of these principles to where they are now being used in the service
sector and in the front office, with the same high degree of success.

JAPANESE KEIRETSU

A keiretsu is an organizational structure unique to Japanese major corporations. While not


all major Japanese businesses are keiretsu, most of Japan's major corporate entities are.
Moreover, the influence of the keiretsu on the Japanese business world is important even
to non-keiretsu organizations. There are two types of keiretsu: the classical keiretsu and
the vertically integrated keiretsu.

The so-called Big Six Japanese business groups are all examples of classical keiretsu.
These are the Fuyo/Fuji Group, Sumitomo, Sanwa, Mitsui, Mitsubishi, and Daiichi-
Kangyo Ginko. Classical keiretsu are bank-centered with no specific central industry.

While not considered classic keiretsu, many major single-industry companies in Japan are
increasingly becoming viewed as vertical keiretsu. These include Hitachi, Toyota, Nissan,
Toshiba, and Matsushita. These keiretsu are more pyramid-shaped, with a single industry
or company at the pinnacle of the pyramid and the member companies collected beneath.

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KEIRETSU DEFINED

Japan's keiretsu are not single entities. Each keiretsu is formed of an interdependent
collection of individual firms woven into a common enterprise. In this, the keiretsu are
similar to the Korean chaebol, but there the similarities stop.

The keiretsu form a type of family of member companies, each connected to the others
through cross-share holder ship. In other words, each company within the keiretsu holds
significant shares of stock in each of the other keiretsu members. The companies remain
independent of each other, and are not subsidiaries of holding companies, as holding
companies were outlawed after World War II.

Additionally, the size of the keiretsu corporate families can be deceptive. Most keiretsu
have well over 100 members, while many far exceed that amount. Hitachi alone has over
680 member firms and subsidiaries. While shareholder control is coordinated, technically
the stock of each member firm in the keiretsu can be traded independently.

Table 1. 5S Definitions

Japanese Term English Equivalent Meaning in Japanese Context

Throw away all rubbish and unrelated


Seiri Tidiness
materials in the workplace

Set everything in proper place for


Seiton Orderliness
quick retrieval and storage

Clean the workplace; everyone should


Seiso Cleanliness
be a janitor

Standardize the way of maintaining


Seiketsu Standardization
cleanliness

Practice 'Five S' daily - make it a way


Shitsuke Discipline
of life; this also means 'commitment'

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Seiri

The first step of the "5S" process, seiri, refers to the act of throwing away all unwanted,
unnecessary, and unrelated materials in the workplace. People involved in Seiri must not
feel sorry about having to throw away things. The idea is to ensure that everything left in
the workplace is related to work. Even the number of necessary items in the workplace
must be kept to its absolute minimum. Because of seiri, simplification of tasks, effective
use of space, and careful purchase of items follow.

Seiton

Seiton, or orderliness, is all about efficiency. This step consists of putting everything in
an assigned place so that it can be accessed or retrieved quickly, as well as returned in that
same place quickly. If everyone has quick access to an item or materials, work flow
becomes efficient, and the worker becomes productive. The correct place, position, or
holder for every tool, item, or material must be chosen carefully in relation to how the
work will be performed and who will use them. Every single item must be allocated its
own place for safekeeping, and each location must be labeled for easy identification of
what it's for.

Seiso

Seiso, the third step in "5S", says that 'everyone is a janitor.' Seiso consists of cleaning up
the workplace and giving it a 'shine'. Cleaning must be done by everyone in the
organization, from operators to managers. It would be a good idea to have every area of
the workplace assigned to a person or group of persons for cleaning. No area should be
left uncleaned. Everyone should see the 'workplace' through the eyes of a visitor - always
thinking if it is clean enough to make a good impression.

Seiketsu

The fourth step of "5S", or seiketsu, more or less translates to 'standardized clean-up'. It
consists of defining the standards by which personnel must measure and maintain
'cleanliness'. Seiketsu encompasses both personal and environmental cleanliness.
Personnel must therefore practice 'seiketsu' starting with their personal tidiness. Visual
management is an important ingredient of seiketsu. Color-coding and standardized
coloration of surroundings are used
for easier visual identification of anomalies in the surroundings. Personnel are trained to
detect abnormalities using their five senses and to correct such abnormalities immediately.

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Shitsuke

The last step of "5S", Shitsuke, means 'Discipline.' It denotes commitment to maintain
orderliness and to practice the first 4 S as a way of life. The emphasis of shitsuke is
elimination of bad habits and constant practice of good ones. Once true shitsuke is
achieved, personnel voluntarily observe cleanliness and orderliness at all times, without
having to be reminded by management.

5s Principles of Japanese Management


Dear Friends,

I need to prepare a ppt on the "5s of Japanese Mgt ie: the principles of :

1) Seiri - sort
2) Seiketsu - sanitize
3) Seiso - Sweep
4) Seiton -Systematize
5)Shitsuke - Self discipline

Why you need this product ?

The 5S concept has its origin in Japan (first within Toyota) in the later part of 20th
century. Each of the five S's denote the first letter of five Japanese words (Seiri, Seiton,
Seiso, Seiketsu, and Shitsuke) that outline the steps involved in modern workplace
management / housekeeping.

The logic behind the 5S practices is that organization, neatness, cleanliness,


standardization and self-discipline at the workplace can help production of high quality
products and delivery of high quality services with little or no waste, and with high
productivity.

The 5S has become the way of doing business not only to impress the customers but also
to establish effective quality processes as prerequisites for good products and services.

You may carryout the 5S training and implementation separately or as part of


ISO9001:2008 / Lean Manufacturing / Six Sigma implementation.

With its universal appeal, 5S can be effectively implemented in any organization from any
business sector.

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38
.ANALYSIS

After visiting the PARLE factory for preparing a project report we analyzed that the
best selling branded biscuit company offers its customers with large variety of
biscuits (parle-g, krack-jack, Monaco, hide and seek etc.), confectionaries
(mangobite, melody, poppins) and snacks (Musst bites)

It aims “TO SERVE PEOPLE AND NATION”

The privately owned self financed company provides motivation and confidence to
its staff and other related members by providing various facilities and organizing
certain events. It has a very open work culture. The atmosphere is so comfortable
and relaxed that helps in increasing productivity and efficiency. It lunches and
outstation team-building exercises that augment inter-personal relations and mutual
understanding.

Parle has found its way into the Indian hearts and home. It spreads happiness and
joy among the people of all ages.

As one comes to visit their plant, they welcome them whole-heartedly and
cooperate with them in the best way they can. They are the strict followers of
Japanese culture.

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40
SWOT ANALYSIS OF PARLE PRODUCTS

STRENGTH WEAKNESS

1. Low price as compared to 1. Breakage of biscuits while


competitors delivering to retailers
2. Sizeable market share in the 2. No proper replacement
country. system for broken biscuits to
3. Offers variety of products retailers
under its brand. 3. Improper and irregular
4. Different sizes of packets are supply.
available. 4. Fewer shares in Premium
5. An experienced team of sales biscuit market.
and marketing executives. 5. Dependent on its flagship
6. Deep and effective coverage brand, Parle-G
7. Largest distribution system. 6. Poor packaging in family
pack of glucose biscuits.
7. Lack of schemes for retailers
and distributors.

OPPORTUNITY THREAT
1. Rising demand for innovative 1. Highly advertised brands such
packaging in packaged foods. as Britannia.
2. Retaining loyal retailers or 2. Ever increasing competition
wholesalers. from multinationals and local
3. Improving supply system for companies.
established brands. 3. Increase in sale of cheap local
4. Huge scope for some Parle bakery products.
products in medical shops. 4. Emerging substitutes like
5. Information revolution brought wafers, snacks and toast.
about by the television. 5. Margin war among the major
6. Good scope for snacks and Brands
namkeens, if launched and
properly promoted by Parle.

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CONCLUSION
After visiting the factory, we found that Parle is the biggest biscuits and hard
boiled candy manufacturing industry.

We also concluded that Parle is the first preference of both the customers and
retailers (Organized and unorganized both) because of its price and brand image.

Brand Parle G dominates the volume-dominated biscuit market. Even in today‟s


times when multinationals are beefing up their operations and trying to change the
dynamics of the market, Parle G‟s numero uno position is unchallenged. Its
competitors have roped in superstars like King Khan and Sachin Tendulkar, but
Parle G has only gone from strength to strength. Brand Parle G is iconic and has
evolved over the years. Trust, relevance, affordability are its hallmarks, which have
withstood pressures from the hyper-competitive marketplace.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,
Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite enjoy
a strong imagery and appeal amongst consumers across the world. Which has
resulted into Parle-G being the “world‟s largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating
and catering to new tastes PARLE-G has built its reputation. This can be seen from
the success of its new brands such as Mazelo, Imli Bite etc.

Parle Products Pvt Ltd., is now lagging in services to retailers because of improper
supply and distribution in some areas and competitors taking advantage of these
points

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BIBLIOGRAPHY

I. PARLE INDUSTRY, NEEMRANA


II. Reference Book: PHILIP KOTLER & KELLER KEVIN LANE
III. Websites:

Google search: (www.google.com)

Wikipedia search: (www.wikipedia.com)

www.parleproducts.com

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