A REPORT ON

STUDY THE APPLICATION OF PRODUCTION AND OPERATION MANAGEMENT CONCEPT

SHREE KRISHNA ENGINEERING WORKS

SUBMITTED BY:

Sr. No.
1 2 3 4 5 6 7

Enrolment No.
137500592067 137500592092 137500592105 137500592108 137500592111 137500592116 137500592117

NAME
PATEL EKTA G. SALIYA RIDDHI A. SONKSURE KALPESH M. THAKOR SUCHIT V. VANKAWALA DHARTI S. VORA DAXA G. WANKAWALA MOHIT S.

SUBJECT: PRODUCTION AND OPERATION MANAGEMENT (2820006)

SUBMITTED TO: Dr. VIJAYENDRA GUPTA AND Mr. PRATIKSINH VAGHELA

S.R. LUTHRA INSTITUTE OF MANAGEMENT 750/805

TABLE OF CONTENT

Sr. No. 1 2 3 4 5 6 7 8 9

Title Introduction of organisation Location: factors and methods Layout: type and production system Inventory: type and management techniques Material handling system and equipment Production and capacity planning and scheduling Quality: methods and techniques Waste management techniques Safety management Reference Appendix

Page No. 2 8 10 15 16 17 18 20 21 22 23

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INTRODUCTION TO ORGANISATION

Shree Krishna Engineering Works (Surat) established in 1965 by the late founders Shri Sarottamsinhji and Shri Krishnasinhji (Bachhubhai) has become an established manufacturer of paper corrugated packaging machineries, offering full production lines or individual modules each designed And Engineered to give Productivity, Quality and dependable Performance to customers. Engineers having more than 30 years of experience in building corrugated packaging and line machines. They utilise the very best of raw materials have achieved good economies of scale and are therefore price competitive. Having standardised many spare parts our offer sales, service is the best available With capacity to produce up to twenty full line corrugating box making plant and numerous individual machine modules per year. The company exported corrugating packaging machineries and platen punching press (Which is known No. 1 in India and aboard) to several African countries the middle-east Srilanka, Bangladesh, Nepal etc.. We are situated in Surat ( Gujarat, India) is known as Diamond, Silk City, Zari, in overseas countries. Krishna's business concepts and reputation only contributes to what we guarantee and constantly looking for win-win situation for customers as well as for Shree Krishna Engineering Works.

Mission Improving productivity of machineries through meaningful innovation

Our Vision To be a globally respected high performance organisation offering sustainable solutions towards packaging industry

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Our Team Mr. Vikramsinh Thakur (Director) Mr. Vikramsinh Thakur, or Rajubhai as he is known, is an industry professional, with over 35 years of experience in India, and the globally. Rajubhais leadership experience includes corporate governance, customer relationship management, and organization strategy. Mr. Ruchit Thakur Mr. Ruchit Thakur hold a degree of engineer of recognized university, Mr. Ruchit a unique blend of technical components and managerial abilities, to give a superior edge to KRISHNA and lead the company to greater heights of protection in the years to come. Production Team Technically sound engineers and skilled labours puts there heart and soul in manufacturing of the machinery and demonstrating their efforts toward KRISHNA.

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PRODUCT PROFILE
Krishna manufacture various kind of the machineries for paper packaging industries. Krishna manufactures customized machines according to the need of customers. Corrugation Machine X

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 Reel Stand

Reel To Sheet Cutter

Sheet Pasting Machines

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 Four Bar Rotary Creasing and Cutting Machine

Overhung Eccentric Slotter

Sheet Pasting Machine

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 Box Stitching Machine

Heavy Duty Die Platen Punching Machine

3,5,7 Ply Automatic Plant

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LOCATION: FACTORS AND METHODS

Plant location is defined as the function of determining where the plant should be located for maximum operating economy. Any company must select an ideal location at the time of establishment. An ideal pant location means a scientific selection includes nature and type of the business operation advantages, economical factor and profit orientation.

Factor affecting the selection of location

The following factors are affecting to the selection of location: -

Availability of Raw material easily Technological know-how Transportation facilities Attitude of local people Export/Import regulations Availability of efficient and cheap labour Statutory/legal condition Communication facilities Local taxes and insurances Also Availability of commercial services Historical factor also related. Cost of establishment. Trade duties

Location Evaluation Method

Our group has assessed the site selection through weighted factor rating method between current location ( Udhna) and previous location (Sahara darwaja).

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Weighted factor rating method:

Factors

Weights

Site-1 (Udhna)

Site-2 (Sahara Darwaja)

40*0.15=6 60*0.03=18 50*0.10=5 40*0.20=8 40*0.20=8 70*0.10=7 60*0.02=1.2 50*0.08=4 50*0.04=2 50*0.06=3 50*0.10=6 50*0.02=1

Labour Amenities Transport Inputs Land & Climate Regulations Safety Cost of establishment Politics/culture Availability of technology Trade duties Availability of infrastructure Total =>

0.15 0.03 0.10 0.20 0.20 0.10 0.02 0.08 0.04 0.06 0.10 0.02

50*0.15=7.5 60*0.03=18 80*0.10=8 60*0.20=12 40*0.20=8 80*0.10=8 70*0.02=1.4 60*0.08=4.8 50*0.04=2 50*0.06=3 60*0.10=6 40*0.02=0.8

79.5

69.2

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PLANT LAYOUT
The most important factors for the manufacturer is to made a decision about the volume of production turned out by the existing set of machinery. Plant layout has been defined as, a technique of location machines processes and plant services within the factory in order to secure the greatest possible output of high quality at lowest possible total cost of production. A good plant lay out focuses on production, machinery, machine tools, work centers, effective inspection, material handling, storage and transport movement improving production efficiency and he better supply of services to the consumer. There are main 5 types of pant layout, which are as follows: Process layout :It is also called function layout. All machines performing similar type of operations is grouped at one location in the process layout e.g. all lathes, milling machine, cutting machines etc. in the engineering shop will be clustered in their like groups. Thus, all forging will be done in one area and all the lathes will be placed in another area. This type of process is more suitable to job ordered type of production.

Product layout :In this type of layout, the machines are arranged in the sequence as required by the particular product. All machines as required to balance the particular product line are arranged in a sequential line but not necessarily in the straight line. It is also known as the product line layout. In this layout, one product goes through all the machines lined u, in the order required by its manufacture. The best-known example of this type of layout is seen in motorcar production.

Fixed position Layout :The manufacturing operations require the movements of men, machines and materials. Generally few inputs tend to be static while the others are moving. But where the product is large in size and heavy in weight, it tends to be static, e.g. ship building. In such a production system. The product remains static and the men and machines move performing the operation on the product. The production characteristic is sufficient enough to treat it as a separate type of layout.

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 Mixed / Combined Layout :Generally pure process or pure layout is not found in practice. Both are mutually exclusive. A proper compromise reaping the benefits of both layouts is possible to some extent. So efforts are made to have the combined layout incorporation the benefits of process and product layout.

Cellular / Group Layout :Here machines are placed in different groups. Each machine group makes a family of parts, which require similar treatment. This layout lies between process and line layout. It is easier to control than a strictly process layout and has more flexibility than a line layout. The "SHREE KRISHNA ENGG. WORKS." has adopted process layout. The company adopted process layout because the product manufactured by the company is customized and each parts required different jobs.

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BLOCK DIAGRAM OF THE SITE

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Process Layout Diagram

In the above diagram shows the manufacturing process of the corrugation machine. Where different parts needs different work job to be done. Yellow Line: Yellow line shows the process needed on the main body of the machine. Brown Line: shows the process needed on the rolls of the corrugation machine Blue line: shows the process needed on the small parts i.e. shafts, wheels,etc. Green Line: shows movement of the electronic parts like motors, drives, heaters etc. Electronic parts are kept separates because threat of damages. Red Line: shows movement of the material like gears, bearings etc. directly to the assembly line

Shree Krishna Engg. Works follow fixed position layout for the 3- 5-7 ply automatic plant. Automatic plant are to be assembled at the location where it is to be installed.

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Planning Machine

Lathe Machine

Milling Machine

Boring Machine

5- Ply Automatic Plant manufacturing at Ankleshwar (Fixed Position Layout)

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INVENTORY: TYPES AND MANAGEMENT TECHNIQUES

Types of Inventories Several types of inventories are maintained by organizations. Some of the major inventories are: Raw materials: Raw materials, required for production of finished products are one of the basic components of inventory for a manufacture. Shortage of raw materials can cause production stoppage or change in production Schedule which in turn may result in a shortage of finished goods. However Shree Krishna Engg. Works dont maintain raw materials as they are producing customized product. When they received order from the customer, they order for the raw material according to the requirement of the client. Finished Goods: Finished goods are another important part of inventories, especially for the wholesalers and manufacturers. While holding finished goods inventory, it is important to have an adequate and not excess stock of inventories as they may incur cost as well as loss if the excess inventory is not sold out in time. Shree Krishna Engg. Works maintain limited amount of the finished goods i.e. spare parts of the final products. W.I.P.: Work In Progress (W.I.P.) inventory is often maintained between manufacturing operations within a plant to avoid production hold ups in case a critical machine or equipment were to breakdown and also to equalize production flow, since not all manufacturing units produce at the same rate. Shree Krishna Engg. Works faces the huge size of semi-finished goods. Spare parts: Spare part inventories are mainly held for purpose of coping up with untimely breakdowns in machinery and facilities. This may form a minor part of the inventory, however are as necessary as holding raw materials inventory. Shree Krishna Engg. Works maintain few stocks of the spare parts of the machines so as to reduce the breakdown of the machine. Shree Krishna Engg. Works has unique inventory where they are following a SAP inventory management model. They are importing few parts from countries like China, Japan etc. Parts like the flat belt, Oil Pumps and air suction machine (Vacuum Suction Device ). They even have their local inventory supplier in cities like Delhi, Mumbai, Ahmedabad etc. Where they supply small inventories ranging from bolt and nut to electrical heaters, motors, adoptors etc.

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MATERIAL HANDLING SYSTEM AND EQUIPMENTS

Material management is indispensable core activity of all types of organization whether manufacturing, trading or even non- profit organization. All organization are continuously involved in procurement, storage and stock replenishment of different types of production materials. Material management refers to the integrated management approach to planning, acquisition, conversion, flow and distribution of production materials from raw materials stage to finished product stage. The material management is help in the procurement of material at low price, higher rate of inventory turnover, to ensure continuity of material supply, to minimize the acquisition and storage costs, maintenance of supplier relation, development of personnel etc. In the manufacturing organizations the important inputs are men, machine and materials which are the results of the monetary commitments materials being a key and inevitable input, directly affects the fundamental economic objective viz profitability of any manufacturing organization. Efficient management of any of the input directly affects the output and reacts in the profitability of the organization. As material consume lions share of the investments and that too with a possibility of turnover, its efficient management directly contribute to the profitability of the organization. Shree Krishna Engg. Works has Overhead cranes and manual moving cranes for the movement of the materials within the organisations and for the dispatch of the product organisations hires services of Hydraulic Cranes and Mens.

Manual Moving Crane

Overhead Bridge Crane

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PRODUCTION PLANNING AND CONTROL

Production planning and control is comprise the planning, routing, scheduling, dispatching and follow up function in the production process as organized.

The nature of production planning and control department can be divided in their broad categories viz., centralized and de-centralized and through progress men. Production Planning & Control Manager

Production Engineering Section

Materials Management

Inventory Control Section

Receiving Shipping Section

The company decides, the production planning is not governed by market demand. It is governed by research and development. Shree Krishna Engg. Works are exclusively based on specification of the product required by the customers. They developed different models of machines. A to Z operation in area connected with mechanic and electronic faculties and carried out at Krishna workshop. In this company, first the company receives the corporate order form the market and then after the company thinking about production planning and control, like how much time will require? How much material will require? All these type of questions solved in the production planning and control by the company.

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QUALITY METHODS AND TECHNIQUES

QUALITY CONTROL Quality control refers to the technical process that gathers, examines, analyse & report the progress of the project & conformance with the performance requirements. QUALITY CONTROL NORMS, TECHNIQUES & PROCEDURES AT COMPANY In Shree Krishna Engg. Works Once quality standards & other things are laid out, inspection becomes a routine matter In quality control programme, actual inspection & measurement is an undetectable factor, which is to be planned properly to meet with the overall objective of quality control. Various stages at which inspection are carried out are: Material inspection at suppliers end Material inspection at stage of receipt Material inspection at stage of issue Inspection of process @ the time of initial setting of machine/ equipment Inspection of finished goods after the job is done Inspection of machines/ equipments that are commissioned They have decided on various stages of inspection & various quality characteristics to be inspected, it is also important to decide who will inspect so the Mr. Ruchit Thakur itself checks the quality. Some of the basic information required is design specification, product specification, quality characteristics, quality standards, tolerances & detailed inspection procedures. INSPECTION: In Shree Krishna Engg. Works monitoring in the production process at three points: Before production, During production, After production.

The logic of checking conformance before production is to make sure that inputs are according to the standards. The logic of checking performance during the production is to make sure that the conversion of inputs into output is proceeding in an acceptable manner. The logic of conformance of finished product is to make final verification before dispatching.

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P.D.C.A CYCLE AT KRISHNA Shree Krishna Engg. Works follow the Shewart Cycle P.D.C.A for quality management. The original Shewart Cycle consists of a simple circle or wheel divided into four quadrants: one for each of Plan, Do, Check and Act. This a way to achieve the outcomes you desire through increased quality awareness. The complete cycle can be used to determine the detail of each quadrant. It is a virtual, never ending process and is key to achieving transformation.

PLAN: Design or revise business process components to improve results. What we are going to do. In this step they assess where we are, what we need to make, why this is important, and plan how to close the gap. Identify some potential solutions. This is the important for them to meet the client requirement and there need. DO: Implement the plan and measure its performance on a small scale i.e. test the solutions. CHECK/STUDY: Assess the results and report after the inspection to take critical decision. ACT: Decide on changes needed to improve the process or not.

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WASTE MANAGEMENT TECHNIQUES It is important how you carry out waste disposal. In todays world where population is on the rise and so is rapid industrialization, creation of waste material is a common phenomenon. These wastes are harmful to the environment and how you dispose them off depends on how they affect the environment. Proper disposal of waste material helps keep the environment free from disease causing pathogens and keeps it green. Given below are four methods of proper waste management that will help you keep your environment clean Various Techniques to manage waste in industries are Recycling Composting Land fills Burning the waste material

Recycling of the Scrap (Waste) at Krishna Recycling is one of the most well know method of managing waste. It is not expensive and can be easily done by you. If you carry out recycling, you will save a lot of energy, resources and thereby reduce pollution. You can also save money if you recycle. You can recycle papers, glass, aluminium and plastics. If you want to reduce the volume of your waste material, the best way to do so would be to recycle if you recycle, you can eliminate batteries, tires and asphalt from your waste material and this prevents them from ending up in the landfills and incinerator. The municipality of almost all cities encourages their citizens to take up recycling. Be a responsible citizen and reduce your waste by recycling. All the scrap accumulated from the processing of the job are gathered and sold it to the scrap dealers. Scraps in the form of the small pieces accumulated from the lathe machine, planner, boring drilling etc.

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SAFETY MANAGEMENT
There is evidence of great technological revolutions in every field with serious amazing discoveries. It has been found that engineering can prevent accident. It has also been found that workers could be reached through educational techniques and bought to greater awareness of the problems and methods of combating accidents. Though trial and error, it has also been discovered that safety rules could be established and enforced. In this discover called as engineering in design, enforcement of the factory inspectorate, education and enthusiasm industry has found the means to make drastic improvement in the prevention of accident. Shree Krishna Engg. Works are very much concern about the safety of their employee. They provide various safety equipment to their employee according to the job level. They provide gloves, eye gears, safety suits for the worker in lathe department, for welding they provide welding helmet, welding gloves etc. and many more.

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REFERENCE: OPERATION MANAGEMENT FOR MBAs - JACK R. MEREDITH

PRODUCTION AND OPERATIONS MANAGEMENT - RUSSELL AND TAYLOR WEBSITE: http://www.shreekrishnaengineering.com/ http://www.scribd.com/doc/7372471/PRODUCTION-PLANNING-ANDCONTROLPPC-notes

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APPENDIX Plant Location

NSIC ACCREDIATION CERTIFICATE

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