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Study of
Insurance Industry
Of India
Subject: Macro Economics

End-Sem Project (Batch:2014-16)

Date: 11th March 11, 2015

Submitted to:
Prof. Vivek Raina

Submitted By:
Pooja Gandhi(G.R:258)
Dipa Nasare(G.R:239)

Transformation process:
Every organization, be it a product or service organization,
transforms certain inputs in to outputs.


Transformation process


In this project we are going to study the cashew

processing unit. How cashew nuts are manufactured. Lets
understand its transformation process in detail.
Its start with inputs. Their basic raw material is cashew nuts only
which they buying from Nigeria and South Africa.

(Raw material: cashew nuts)
Boil cashew in boiler
Cutting machine
Scooping machine
Oven (600 minutes)
Filling machine
Greeding machine

transformation process

Cashew nuts (output)

Process Design:
The transformation process is used to convert inputs into desired
outputs. The process can be various types as follow:

Continuous process
Intermittent process
1) Batch process
2) Job shop

For cashew nuts they are using continuous process.

Green operation management:

Yes, their plant is polluting the environment as they are using
boiler that is of 300 kg, it pollutes the environment.
But for using such machines its important to have food license
which has been issued by government. They have issued that.

Recycling based on the premises that the recourses required to
produce a product from scratch would be much more compared to
recycling the product.
The wastage of cashew is being used to make OIL PAINT , so it is
so much important so they are selling the wastage.

Automation means replacing human labour with machines. It can
be range from partial to full.
For this they are using partial automation. Because they are
having the machines for half of the work and half of the work they
are doing manually with the help of labours.

Which type of business grand strategies they

They are using JOINT VENTURE. They are two partners who
running this factory.

Centralized or Decentralized:
They are using joint venture but their factory is fully centralized
because only one person is handling this whole factory. Authority
is in one persons hand only.

Quality of product:
They are providing quality of product to the customers. They are
having numbers of cashew and as per the requirements they are
providing that to their suppliers.
Their main suppliers are:


420 hotels
Bliss hotels
Royal hotel
Maharaja shop

And they are proving different number of cashews like, 400# ,

320# , 240# ,210# ,180# .

Inventory management:
They have told us that in summer demand of cashew are very
less so in summer they fill their stock so they can charge more in
winter. Like this they are doing their inventory management.

Type of inventory management:

For cashew they use EOQ EITH SAFETY STOCK. As they stock
the cashew in summer at lowest cost.

Safety stock:
Safety stock is the protection against the possibility of a stockout.
Yes, for cashew they are carrying safety stock of 1 tons.

Uncertainty of demand:

For manage uncertainty of demand as we have seen that they are

carrying safety stock and its the seasonal product in winter they
having the highest demand so they forecast it as per their

Quantity discount:
In cashew they dont get any type of discount.