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Company profile... Products. Production plan. Aggregate planning.. Product layout... Quality for product Quality certification.. Procurement function..
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Company profile
. PAS3 & company was established in 2011, the company is an partnership firm. This partnership firm under the guidance of shobhit mittal, sanchi, shikha, apurv, anuj and paarijat has managed to conquer a segment of the market in Delhi NCR. PAS3 & company operate on the principle of appointing stockiest agents in all towns and cities. The policy is to aim at smaller profit and larger turnover. Retail outlets and door to door selling methods are not used. Though sales staff is employed to supervise, book orders and conduct promotion campaigns.
Products
We are one of the leading small scale industry unit in Delhi NCR, manufacturing synthetic detergent powder, cake, laundry detergent, laundry/washing soaps, dish washing bar and bathing bar, under our brand name power, white, fragrance, detergent powders with S3A2P formula etc.
Production Plan
Business Operation
The company fallow the 5 days a week and 22 days a month operating plan The 24 hours production is distributed in 3 eight hours shifts Which then equals 120 hours a week,528 hours a month and6336 hours yearly. The adjustments are done like over time in peak demand and under time in slack time shutdown periods The shut down periods are 4 times a month and 48 times a year respectively. Due to high demand in peak time company reduces the shutdown periods accordingly no of shifts The work is distributed in to 3 shifts production plan capacity,proceses type(auto or manual) ,purchasing material inventory ,plan suppliers ,office equipments ,labor force no of employees skill levels and types genders, age range ,compensations ,salary plans ,retirement period.
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Competitive strategy
In competitive strategy there are some sort of pressure on you, which have, you must the capability to face it like they are: Pressure of Buyers: When there is a lot of sellers lying in the market then buyer has power to influence.
Pressure of Suppliers
One supplier for a company can exploit the company. Therefore detergent company has 3 Suppliers for the purpose to bargain with them effectively. 1. Threats of Substitutes: In the detergent market people have choices as they can take Surf Excel and Ariel alternatively. 2. Threats of new entrance: New coming brands of China and other smuggled brands are huge threat for company. As concern of competitive strategy the organizations really should focus on following of three strategies Differential strategy when we see towards the company they have really provide the good quality products to the consumers like packing and beautiful appearance with beautiful colors and images as well as Unilever focusing on best quality of detergent as charging the premium on it.
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Aggregate Planning
Aggregate planning is the process of planning the quantity and timing of output over the intermediate range (often 3 to 18 months) by adjusting the production rate, employment, inventory, and other controllable variables. Aggregate planning links long-range and short-range planning activities. It is aggregate in the sense that the planning activities at this early stage are concerned with homogeneous categories (families) such as gross volumes of products or number of customers served. Master scheduling follows aggregate planning and expresses the overall plan in terms of the amounts of specific end items to produce and dates to produce them. It uses information from both forecasts and orders on hand, and it is the major control (driver) of all production activities.
concerned with planning horizon less than a year, we usually shall assume that facilities are fixed and thus this alternative is not available to the planner.
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The optimal combination of these alternatives involves proper trade-offs between the following types of costs: Production costs which include any out-of-pocket costs that is associated with production rate. Inventory holding costs. Shortage losses associated with backorders and lost sales. Costs of increasing and decreasing workforce levels. These include hiring and training costs and separation pay and other losses associated with firing or laying off workers. Costs of deviating from normal capacity through use of overtime or under time.
Product layout
In a product layout, the workstations and equipment are located along the line of flow of the work units. Usually, work units are moved along a flow line which is powered by a conveyor. Work is done in small amounts at each of the workstations on the work unit. This means that to use the product layout the total work must be dividable into small tasks that can be assigned to the workstations. Product Layout is one of the three basic types of plant layouts; the other two are process layout, and the fixed-position layout. When the workstations are relatively few in number, they can be arranged in one straight line. In more complicated plants such as the automobile final assembly plant, they can be arranged into a series of connected line segments. Because the workstations do small amounts of work, the stations are specialized in their tasks with specialized equipment and tooling, which leads to high proficiency and reduced cycle time. And this also leads to a higher production rate.
2. Soda Products :
Detergent formulations consist basically of (a) an active ingredient (b) sodium tripolyphosphate, (c) silicates, (d) sodium sulphate. Normally the active ingredients are
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fatty alcohol sulphates, primary and secondary alkyl sulphonates and alkyl aryl sulphonates. Synthetic detergents are currently based upon linear alkyl benzene sulphonates. Formulations are with variations as decided by each company.
The product is dried in a counter-current-flow drying tower at inlet temperature 350 400C (660 - 750F). The dried powder leaves the base of the drying tower and is transported via a conveyor belt to an air lift. During passage on the belt, product dosing is carried out. Dosing materials can be products that would damaged during spray drying, e.g. lauryl alcohol, enzymes. Bleach along with enzymes is also added at this stage. Perfume is added after the following air lift.
Measures for Quality of Power Detergent 1. Customer Satisfaction: Whether the customer is satisfied after its use or not. 2. Responsiveness: It refers to the turnaround time of customers. 3. Reliability: The chance that the product is completely vital to use , that it doesnt produce any kind of poisonous effect on clothes, which would hamper the quality in terms of human health and clothes. 4. Serviceability: It refers to how easily the product is available to the consumers when required. 5. Aesthetics: It refers to how the product (Surf Excel) looks, smells etc. 6. Safety: Assurance that customer will not suffer injury or harm from a product; and specially important consideration for consumption by children.
Made By: Shikha Singh - PGFA1143
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are
independently certified, making ISO 9001 one of the most widely used management tools in the world today. Despite widespread use, however, the ISO certification process has been criticized as being wasteful and not being useful for all organizations.
superior return on assets compared to otherwise similar organizations without certification. Hears et al (2002) found similarly superior performance and demonstrated that this was statistically significant and not a function of organization size. Nave and Marcus (2007) showed that implementing ISO 9001 led to superior operational performance. Many others identified similar improvements in operating performance and linked this to superior financial performance. Chow-Chua et al (2002) showed better overall financial performance was achieved for companies in Denmark. Many business firms showed that ISO 9001 certification resulted in superior stock market
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performance and suggested that shareholders were richly rewarded for the investment in an ISO 9001 system. While the connection between superior financial performance and ISO 9001 may be seen from the examples cited, there remains no proof of direct causation, though longitudinal studies, such as those of Corbett et al may suggest it. Other writers, such as success full business firms have suggested that while there is some evidence of this, the improvement is partly driven by the fact that there is a tendency for better performing companies to seek ISO 9001 certification.
Advantages
It is widely acknowledged that proper quality management improves business, often having a positive effect on investment, market share, sales growth, sales margins, competitive advantage, and avoidance of litigation. The quality principles in ISO 9000:2000 are also sound, according to Wade and also to Barnes, who says that "ISO 9000 guidelines provide a comprehensive model for quality management systems that can make any company competitive." Implementing ISO often gives the following advantages: 1. Creates a more efficient, effective operation 2. Increases customer satisfaction and retention 3. Reduces audits 4. Enhances marketing 5. Improves employee motivation, awareness, and morale 6. Promotes international trade 7. Increases profit 8. Reduces waste and increases productivity. 9. Common tool for standardization.
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The modern procurement organization is typically focused on delivering eight or nine key processes. These range from managing the transactional activities such as raising purchase orders and paying suppliers to the strategic activity of selecting new suppliers and managing relationships with the existing supply base. It is the strategic and tactical procurement processes that deliver the big improvements that companies are seeking from their procurement functions (for example, reduction in cost of goods sold, improvement in service levels), explain (2006). In the value chain analysis developed by (1985), procurement is viewed as a support activity that contributes to the competitive advantage of a business unit by adding value. The purchasing function uses various inputs to perform value-adding processes (market and value analyses, sourcing, negotiation, etc) and to provide output like quality, services, materials, etc. If purchasing performs these activities effectively, this output provides the organization with a competitive advantage (see figure1). The value-chain demonstrates that the purchasing function has a major role in adding value to the organization ( 2001).
PURCHASING ACTIVITIES
For many buyers, their new acceptance of value added is closely connected to outsourcing and the need to use the resources of suppliers to conserve their own companies' limited resources. Typical of purchasing professionals holding that view is , program manager, outsourcing, at Genus Inc.'s Ion Technology Div. in Newburyport, Mass. She notes that her company's deep emphasis on adding value through outsourcing was driven by a desire to maximize use of the company's resources. By putting as much of manufacturing in the hands of suppliers, Genus is able to deploy a greater percentage of its resources behind its core competency--product development and testing ( 1995). The main value added by purchasing, according to (2001) is assuring the continuity of supply in the organization. The illustration of the purchasing process , demonstrates the flow of action that happens within the purchasing department. The diagram is used for purchasing transactions outside of the firm, as in-house transactions require simpler and faster operations (the requisitioning activity will touch on the subject briefly). Each process will be discussed in detail including the value added elements that go with it.
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Requisitioning
A requisition form always initiates the process of purchasing. The importance of requisition is often overlooked by many organizations but this initial procedure provides the purchasing officer with all the essential information that he or she needs in the actual purchase of materials. The in-house form (which means that it is for use within the firm only) usually contains these following items: (1) date of request; (2) name and department of the person requesting for the material; (3) particulars of the item/items requested i.e., product code, brand or make, etc. (4) unit and quantity of item/items desired; (5) date needed; (6) date of last request; (7) signature of the person requesting and (8) approval signature of purchasing officer. The form is then forwarded to the purchasing officer. As in the case of outsourcing materials, the purchasing officer will be the one responsible for filling up a form (this time to be sent to the supplier), with basically the same items as that of the in-house form but with additional particulars as the name of the supplier/suppliers, unit price of the item/items, when and where to deliver, a purchasing order (PO) number for the reference of the supplier, and an approval signature from the financial department. Purchasing could do away with a lot of paper work and contribute to value adding by making sure that the requisition forms that they issue to the supplier are organized and easy to read. Searles purchasing department does this by being very specific about the quantity that they order and by using forms that are consistent and easy for the suppliers to read. They have also made it easier for the employees to request for items by providing a requisitioners handbook, a step-by-step guide to filling out forms, company procedures and contact persons ( 1990).
Financial Approval
This involves the authorization to go ahead with the purchasing commitment. This will be made easier by the allotment of a space for such purposes in the requisition form. The persons usually affixing their signature for approval are the finance or the budget department heads. This process could be made easier if there is a batch grouping for requisitions. Taking of immediate action in signing the forms contributes to the speed with which the production (if the request is for raw materials or manufacturing services) and the
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employees (if the request is for office use) perform their respective functions in the firms structure.
Market Assessment
Once the purchasing officer receives the approved requisition form, an appraisal of the market should be done, with these following considerations in mind: (1) Is there a competitive market for the item? ; (2) Is the volume/value of goods required sufficient to warrant calling for quotations and tenders, and if so, should prices and other details be obtained by telephone or in writing?; (3) If there is no competitive market, should the sole supplier be given an immediate order, or can a lower price be negotiated?; (4) Is it appropriate to call for "Registration of Interest", prior to inviting formal tenders?; (5) Are suitable period contracts available?; (6) Is there a list of "approved suppliers" for the item, or is the establishment of an "approved suppliers" list warranted?; (7) Could there be scope for a bulk purchase? ( 1991) After having attended to such considerations, the purchasing officer could then proceed to making the purchase decision. Only through considering the items enumerated above could this process contribute to value adding. An excellent market assessment could prevent materials wastage, further delay of delivery and more strategic supplier selection.
Purchase Decision
The purchasing officer needs to determine the purchasing method he or she will use in acquisition. The principal methods of making a purchase are as follows: (1) tendering; (2) selective purchase; (3) emergency purchasing; (4) bulk purchasing; (5) period contracts and (6) indent purchasing. Sometimes, the purchasing officer has not decided yet on whom to buy from. Decisions can be made through bidding or asking for price quotes from a range of possible suppliers. This process must be recorded or documented for purposes of auditing and to justify the reasons for having chosen such and such supplier in case of subsequent problems. After having picked the purchasing method and the supplier suited to the firms standards, the officer could proceed to the rest of the acquisition process. Value added in the purchasing decisions comes in the strategic supplier selection. Being overly dependent on only a few suppliers could prove disadvantageous to the
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company. If these supplier potions fail to deliver, there will be delay in the production process, and delay means additional expense on the firms part. Value added can also be seen in the delivery method the business chooses. Choosing the delivery method which will best preserve the original state of the items ordered will ensure that materials used in production is in top condition, which in turn would produce top quality goods or services.
Ordering
The officer in charge of buying materials will then arrange to order from the supplier. This should be documented, as this will form an agreement between two parties: the buyer (the organization), and the seller (the supplier). The order contract should expressly reflect the transactions to be made, like the method of delivery and the terms of payment. All the legal and other significant details should appear in the documentation. This, then, should be forwarded to the supplier. The firm should also establish a formal order-tracking system to ensure the follow-up of orders. The system should include: Checking with suppliers that delivery dates are still able to be met. If timing is critical, frequent pre-delivery checks may be necessary; Documentation which acknowledges part-delivery of orders and allows follow-up on delivery of the remainder; A procedure which ensures that suppliers are paid in accordance with contracted terms. (This double-check will help to maintain good
In ordering, the purchasing department could add to value by making sure that correct specifications are indicated in the order contract which will prevent incorrect delivery. The following-up of orders could also add value by ensuring that the lead time is used effectively. Processes in production which could be done without the ordered goods or services should be done while waiting for the delivery to arrive. As such, time is maximized. Made By: Apurv Singh PGFA1108
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