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  • 7/30/2019 Indian Food Specialities Ltd.

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    Assignment 2

    Operations Management I

    Indian Food Specialties Limited

    Section No. 5

    Group No. AA1

    Total Marks

    Marks Obtained

    Sr No. Name of Students Roll No

    1

    2

    3

    4

    5

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    1. Draw the R Chart and X bar for Mango Salt contentAns-

    Sample size

    X bar

    chart R bar chartN A2 D3 D4

    7 0.419 0.076 1.924

    R' LCLr UCLr LCLx UCLx X''

    0.865965 0.065813 1.666116 12.76445 13.49013 13.12729

    0.00

    0.25

    0.50

    0.75

    1.00

    1.25

    1.50

    1.75

    2.00

    2.25

    2.50

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57

    Range

    Sample number

    R-Chart

    R'

    LCLr

    UCLr

    R''

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    2. What are your interpretations about the process, from each of the above charts?Comment on the specific observations and probable causes, if you find that the

    process is not in control.

    Ans- Process variability& average are clearly not in control& show that there are

    some assignable causes which must be investigated to bring the process back in

    control. Above charts show that process is not generating output, on average,

    consistent with a target value set by the management for the process.

    Probable causes are:-

    Poor mango crop may have led to process variability getting out of control Workers may not be adhering to specific instructions given to them which

    may have led to above issues

    Chemical hazards such as aflatoxins, microbial hazards such as bacteria &physical hazards such as flint stones, hair etc might have led to the above

    issues

    12.25

    12.50

    12.75

    13.00

    13.25

    13.50

    13.75

    14.00

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57

    Average

    Sample number

    X-bar Chart

    X'

    LCL X

    UCL X

    X''

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    As the process is out of control so as of now the company is having problem in

    meeting specifications required by markets in UK & US

    3. Draw the R Chart and X bar chart for Mango Acidity.Ans

    Sample size X bar chart R bar chart

    N A2 D3 D4

    7 0.419 0.076 1.924

    R' LCLr UCLr LCLx UCLx X''

    0.140 0.011 0.269 1.573 1.690 1.631

    1.250

    1.500

    1.750

    2.000

    2.250

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57

    Average

    Sample Number

    X Bar Chart

    x'

    LCL

    x"

    UCL

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    4. What are your interpretations about the process, from each of the above charts?Comment on the specific observations and probable causes, if you find that the

    process is not in control.

    Ans

    R Chart

    The process went out of the upper control limit two times. The process also exhibits a run pattern i.e. it is sloping continuously

    downwards

    Though the process is within the control limits for all other values, it showssome variability across the LCL and UCL

    The company has been using the process from past when the qualityspecifications were not stringent.

    0.00

    0.05

    0.10

    0.15

    0.20

    0.25

    0.30

    0.35

    1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57

    Range

    Sample number

    R - Chart

    R

    LCL

    R'

    UCL

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    X Chart

    The acidity content was above the upper control limit for the initial daysafter which it was under control for some time post which it went below the

    lower control limit As observed from the chart, the level of acidity is out of control for most

    part of the sampling process

    This could be due to the fact that the company hasnt been stringent on thequality specifications front in the past. Thus, as the quality specifications

    were implemented initially, the workers may not have been trained to handle

    such quality checks and the acidity levels went above the upper control

    limits

    With the intention to bring acidity levels below UCL, the workers mighthave tried to lower down the content which could have resulted in the in-

    control acidity for a short period

    But again may be due to lack of training the process could have went belowLCL as workers must have tried to control the acidity and might have ended

    up using low acids

    A method to control these variations would be to train the workers in termsof quality. Since, they must have been used to the original quality and

    composition standards from the past they need to be adequately trained.

    Another probable cause could be an improper mixing process. The processshould be monitored so as to gauge the reason for any deviations from the

    recently set standards

    5. Is the process capable of meeting the acidity and salt specifications?Ans - To check if the salt and acidity is capable of meeting the process

    specification we have to calculate the process capability index and processcapability ratio for both processes.

    Salt Specifications:

    Sigma

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    (Ref:http://www.itl.nist.gov/div898/handbook/pmc/section3/pmc321.htm)

    Where d2=3/(A2*sqrt(n))

    Where A2 is 0.419

    Sigma is calculated as 0.321

    Xmean of mean=Grand Mean =13.13

    Lower specification=12.5 Upper specification=13.5

    Cpk=Min[(UpperSpecification-GrandMean)/(3sigma),(GrandMean-

    LowerSpecification)/(3sigma)]

    =Min[0.388,0.653]

    =.388

    A check for Variability

    Cp=(13.5-12.5)/(6*.321)=.5192

    The Value for Cpk is way below the critical limit 1(for a three sigma process and

    the critical values need to get higher as we move towards better quality control

    process like Five Sigma and Six Sigma). And going by the value of Cp we can say

    that process variability is the main cause for the systems not being able to meet any

    of the quality standards.

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    Acidity:-

    Sigma =

    (Ref:http://www.itl.nist.gov/div898/handbook/pmc/section3/pmc321.htm)

    Where d2=3/(A2*sqrt(n))

    Where A2 is 0.419

    Sigma is calculated as .05185

    Xmean of mean=Grand Mean =1.63

    Lower specification=1.50 Upper specification=1.70

    Cpk=Min[(UpperSpecification-GrandMean)/(3sigma),(GrandMean-

    LowerSpecification)/(3sigma)]

    =Min[0.84,0.45]

    =.45

    A check for Variability

    Cp = (1.70 -1.50)/(6*.05185)=.643

    Even the acidity level shows that the process variability is extremely high to meet

    any quality processes. Though the variability in acidity is lesser than in the salt

    level its still below acceptable limits. The management should take measures to

    reduce variability and run the test again to check for improvements.

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    6. Mr Hemant Patil, QC manager is convinced with the idea of implementing SPCon the shop floor immediately, to control the process. What control limits

    should he adopt? A qualitative discussion is sufficient.

    Ans - As none of the processes meet any quality standard, we can start by applyingthe control limit for salt level (12.76-13.49) and for acidity(1.57-1.69). So using

    this as the base we can reduce the causes of variability in this process. Once

    significant steps are taken to reduce the variability, take another set of observations

    and compute the value of CPk and Cp again.

    SL NO Sigma Process CPk values

    1 6 2

    2 5 1.67

    3 4 1.33

    4 3 1.0

    5 2 .67

    6 1 .33

    7. SPC is being followed, is it necesary to follow HACCP? Discuss.Ans -

    The food industry cannot function completely based on statistics, apart from salt

    and acidity levels there are certain other factors that are of more importance, likebacterial level, microbe level, and potential causes of health issues like food

    poisoning. Here variability wont help much, since even one rare case could lead to

    potential legal issues.

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    As IFS has expanded abroad it has to be more stringent with regards to the quality.

    HPCC would be essential since it would improve the overall hygiene, safety and

    quality of their products. HPCC will also enable the system to identify various

    risks and helps monitoring such activities. Managers should use HPCC to identify

    various systems risks and examine the cases of failure. SPC would give us howmuch these measures have helped reduce the variability and improve the overall

    consistency in the product.