PGCBM 22 – Group 50

Prof. Rajiv Mishra

Sharda Oil Mills Production & Process Analysis Ravipratap Singh Tomar (2224997-Gurgaon), Shashank Kumar (2224682-Vadodra), Vrishali Rajhans (2224164- Borivali), Ganesh Gopalkrishnan (2224693-Vadodra)

SHARDA - Mustard Oil Mill

Gohad Distt- Bhind (M.P.)

Introduction:-

Mustard oil can be named among the top choices of the people when it comes to edible oil,

especially in central and Eastern States of India, Bangladesh and Nepal. Only one

byproduct, the solid part (Oil cake or Khalli) is used as an admixture for milk producing

cattle’s food, which helps them to increase volume of milk production. Sharda Oil Mill is

small scale unit produces mustard oil using mustard as raw material and having a byproduct

oil cakes (“Khalli”).

This small plant can be treated as continuous / line plant, which needs very limited number

of processes and limited number of machineries / equipments are used but the processes

are not continuous lets understand it better

Identification under Product MIX

SOM = Sharda Oil Mill

History of Sharda oil mill is , they had started the business with a bull working for getting oil

mill , it was called “Kolhu ka bell“

But and he had shifted to purify the oil to , increasing oil capacity 50 kg / day to 1200 Lit/ Day

after investing almost 25 Lakh in 2 yr., where BEP was met in 6 years and now baring the

perpetual output from it, being a low maintenance machine they are able to earn more. This

company will slice for shifting to more Line and subsequently to Continuous. Since the

product type is such that where :Kacchi ghani” is becoming un popular due to heavy and

lesser refined , the type of product can also be limited in the same fashion and moving more

toward make to stock than MTO / ATO as present.

Raw Material:-

As mustard seeds are taken from a much targeted area (close villages) and grain mart

(Galla Mandi), from 1/4th part of Tehsil Gohad (Seed production Area = 140 km2). Hence in

majority, quality of seeds are of under controllable range but since the location of land is

near to Tehsil`s biggest mart, option for superior quality is easy which is done on two sample

quality assessment basis here two samples are taken randomly from one cubic feet (One

Trolley of farmer`s tractor), and checked for yellowness of seed and the moisture content in

seed under field and Lab testing facility.

After Quality assessment the material is measured and loaded in located storage place

(Refer Fig. Plant Layout).

Equipments / Machinery:-

We may list the establishment list as:-

Item Description Quantity

Oil Expeller 2

Filter Press (Oil Extractor) 1

Other support equipments like electric

motors, diesel engine, conveyor belt,

As required (having one set of Belt and tool

box , which are enough to open / pack

complete Oil Expeller / Filter press)

Testing laboratory 1

weighing scales, etc 3 (2 for up to 300 kgs 1 for up to 30 kg)

Man Power 5 (One Skilled another Semi skilled)

1. Plant Layout:-

Actual layout of this plant is as shown:-

Fig 01

2. Production Process:-

1. Raw material testing, purchase, and unloading at Storage area. Unpacking Raw

material / screening for impurity.

2. Transportation of raw material to expeller filtering and packing:

3. Feeding the hopper of Expellers in this process at first time up to 40% oil is extracted

in bottom of expeller which is collected and transported to filter , this filtered part is

called “Kachhi ghani oil” which is blackish in color , some part of it is packed at this

stage (Type 1 product) , along with oil solid flakes are extracted from expeller which

are repeatedly processed from the same hopper 3 times , from which oil is collected

stage wise and sent to filter press (Type 2 Product) and last extract oil cakes are

stored at another place.

4. Type 1, 2 and 3 both are packed in both small (20%) and drum (80%) packing and

stored for sell on the spot (retail) and on demand basis.

5. Waste is 2-3% in terms of residual sediments from Filter and 3-4 % gets spilled while

collection, filling, transporting and 2-3 % at raw material stage due to very small size

of seeds.

3. Process layout:

Fig. 02

4. Process Analysis – Theory of Constrains

1. Identify Bottleneck – Based on above process flow diagram we can very well make

out that the Expeller is the busiest equipment. The same is used quite repetitive

process. The objective of this production process is to produce refined mustered oil.

In the whole process few Byproducts are produced and pulled out of the process. To

get the finished product the Raw material is passed through the Expeller trice. A

minute wasted at this stage will have drastic impact on the process chain.

2. Exploit the bottleneck – Expellers have to be continuously busy. We can also

consider adding another Expeller if possible to enhance the processing time.

3. Subordinate to the bottleneck – All the remaining activities need to to align to the

Expeller process. Maintenance department need to ensure that there is no

breakdown. Need to ensure constant supply to Raw material / Inventory to ensure no

ideal time for Expeller.

4. Elevate the bottleneck – At this stage now we need to process analysis again to

validate the bottleneck. It’s possible that by adding the new Expeller now Filter has

become new bottleneck.

5. Go back to stage 1 – The entire process will be repeated to identify new bottleneck.

5. De Coupling Point:

We can observe following in this product chain / supply chain.

Product is linked to customer order at retail counter.

Operations are not customer driven rather they are forecast driven.

Major inventory is held at Whole seller/dealer and small inventory is kept in factory

for retail selling from the factory itself. We consider major inventory & ignore the

inventory kept in the factory.

It is Made to Stock type of business

Hence, we conclude that De Coupling point of business is Retailer’s Inventory.

DECOUPLING POINT

FLOW OF MATERIAL

Raw Material Production Whole Seller’s Storage Retailer’s Storage Customer

6. PRODUCT POSTPONEMENT

Although, direct redesign of the product manufacturing process is not feasible but following

gives options of doing product postponement. Ways are:

1. Benchmarking

2. Modularity of product.

7. Non Value Added Activities Analysis:

1. At

stage 1-2 , at exit of unpacking area :- Wastage is created at unpacking stage from

where batches are kept in area 1 and 2 , constraint is that bags cannot be moved in

between two expellers (due to space), if batch size is directly taken from unpacking area

then will have requirement for additional 2 non skill labor

Mitigation Plan:

Creating smaller batch sized bag / temporary batch, which can be directly stacked at

same area (As at stage 2), this batch needs to be reusable.

Since the investment is low budget where conveyer belt cannot be used / purchased hence

reusable batch / smaller, stackable bags can be stored.

A. More raw material can be pushed / batch (since wastage is saved) hence under

production will be stopped and over consumption (kg/ lit) will also improve.

B. Space can be utilized more storage during low prize material.

2. Since there are less numbers stages between raw materials and output hence safety

and limited movement are not followed. Skill of workmanship can be increased by putting

information diagram and material stacking methodology (As shown in Fig 1 at stage 1 i.e.

arrival storage).

Mitigation Plan:

Posters are to be pasted at:

A. Arrival storage.

B. Between expellers

C. At Oil cake storage.

This will help to do storage / counting and control of inventory at each storage.

3. Since there is only one level of production , hence wastage due to over production shall

not be envisaged

4. The “Focus” of company was to fulfill 80% demand as bulk supply and keeping 20% of

retailers was creating waiting more longer (Avg. 5 Hr) for the same trucks to load Oil

tanks , who dumped raw material (Mustard seeds). But packing of retail and small packet

Was being at the same time.

Mitigation Plan :

A. First bulk packing needs to be done then followed by small packing needs to be

done.

A continuous improvement on the same is required to maintain PDCA action criteria.

5. Since Filter area is not the bottleneck, hence plant is underutilized, efficiency of filter is

efficiency of plant hence over discussed parameter needs to be calculated and made

efficient such that everything subordinates filter.

Oct-12 Rapid Plant Assessment Rating--Table 1 Rating Considerations Chart 1 No Measure Factors

1 Customer Satisfaction

Customer ratings, quality certifications & ratings, warranty & product liability costs, employee knowledge of external and internal customer requirements, visitor materials & welcome, market share, rate of new product introduction & acceptance

2 Safety, environment, cleanliness, & order

Safety & environment record, place for everything & everything in its place, cleanliness of operations--exterior & interior, floors, equipment, spills, leaks, noise, lighting, paint, dust, air quality, employee dress, restroom conditions, desks & workbench order & cleanliness, degree of "spiffing" for visitors (negative), inventory order, material flow order & cleanliness, color & other coding for safety & order

3 Visual Management Deployment

Operations mission & performance objectives visible; visibility of labeling & coding of product lines, inventory, equipment, & tooling; color coding & differentiation ; visibility of customer identification & ratings; visibility of charts tracking operation's & teams' safety, quality, & productivity, control room showing status of total operation, customer order & order fulfillment visibility, Kanban deployment, inventory count can be made visually, machines & tool labeling--costs, preventive maintenance visibility, product displays, audit results visible

4 Scheduling system Degree of scheduling to customer order, order process efficiency, product line scheduling at single point, scheduling buckets (each order, hourly, daily, weekly, or monthly), supplier scheduling & delivery, replenishment versus order fulfillment, computer scheduling versus kanban, pull versus push systems, flow time efficiencies, backroom costs of scheduling, MRP costs, data entry costs

5 Product & material flows; space use

Product line versus shop layout, rolling carts pulled by tractors or by hand or conveyers versus forklifts, travel distances between processes, material movement responsibility--process owned or separate material staff, container size (forklift requirement?), containers designed for parts families, single versus multiple docks to minimize material travel, space utilization, goals for space use reduction

6 Inventory & WIP Levels

WIP levels at each process, WIP in transit in plant, separate stores versus line side storage, number of inventory storage areas, finished product levels, total inventory to sales ratio, process cycle time to flow time ratios, countability of inventory, WIP movemend triggered by computer, material department or next process, theoretical versus actual flow times

7People teamwork,

skill level, & motivation

Team problem solving capability & history, employee willingness to talk about customers, products, & company; uniformity of dress; communications & recognition environment; sales per employee; team meeting areas & performance charts; training investments, educational support, benefit package & costs, unionization activity, workforce-management relationship, community support, company-supported activities (picnics, open houses, sports teams, local involvement, employee knowledge of & support of customers & business, work instructions standards

8 Equipment & tooling state & maintenance

Preventive maintenance system, setup change times, integrated go-no go quality checks, machine performance data availability, knowledge & utilization of bottleneck processes, process control capability, total asset utilization, operator routine maintenance, maintenance staff & teams, MRO replenishment efficiency, tool & fixture orderliness, cleanliness, & storage location, equipment improvement policy, equipment technology strategy

9Ability to Manage

Complexity & Variability

Use of common parts, processes, & procedures prototype process, paper transactions required on floor, keyboard entries versus bar coding, backroom paperwork & computer transactions costs, matching of data collected with data needed, simplicity & clarity of operations layout, indirect to direct labor ratio, support staff to total workforce ratio, overhead cost ratios, commonality of tooling & fixturing, commonality of equipment & tools, commonality of support software & applications programs across the operation & among sister plants, equipment efficiencies, ability to handle variable demand, ability to eliminate controllable variations, ability to smooth demand, ability to handle supply chain, number of suppliers

10 Supply Chain Integration

Number of suppliers, supplier release system--from inventory levels or customer order, supplier certification, sourcing policies--short-term or long-term, supplier quality ratings, delivery, & productivity objectives & history, new product development responsibility, responsibility for kitting parts, C-stock replenishment efficiency, supplier material scrap & rework, supplier cost-saving ideas implemented, supplier knowledge of lean

11 Quality System Deployment

Quality certification, quality process & measurement at each process & for each product, scrap & rework, problem solving process, product & customer quality data, quality ratings, new product startup process, continuous improvement environment, degree of focus on customer satisfaction , implementation of best practices, degree operational strategies are linked to corporate strategy, total quality system well-developed & deployed

Plant Rapid Plant Assessment Date Oct-12

No Table 2--Assessment Questionnaire Yes/No1 Are visitors welcomed and given information about plant layout, workforce, customers, and products? YES2 Are ratings for customer satisfaction and product quality displayed? YES3 Is the facility safe, clean, orderly, and well lit? Is the air quality good and noise levels low? NO4 Does a visual labeling system identify and locate inventory, tools, processes, and flow? YES5 Does everything have its own place, and is everything stored in its place? NO6 Are up-to-date operational goals and performance measures for those goals prominently posted? NO7 Are production materials brought to and stored at line side rather than in separate inventory storage areas? NO8 Are work instructions and product quality specifications visible at all work areas? YES9 Are updated charts on productivity, quality, safety, and problem solving visible for all teams? NO

10 Can the current state of the operation be viewed from a central control room, on a status board, or on a CRT? NO11 Are production lines scheduled off a single pacing process with appropriate inventory levels at each stage? NO12 Is material moved only once as short a distance as possible and in appropriate containers? YES13 Is the plant laid out in continuous product flow lines rather than in "shops"? YES14 Are work teams trained, empowered, and involved in problem solving and ongoing improvements? YES15 Do employees appear committed to continuous improvement? YES16 Is a timetable posted for equipment preventive maintenance and continuous improvement of tools and

processes? NO17 Is there an effective project management process, with cost and timing goals, for new product start-ups? YES18 Is a supplier certification process--with measures for quality, delivery, and cost performance--displayed? NO19 Have key product characteristics been identified and fail-safe methods used to forestall propagation of defects? YES20 Would you buy the products this operation produces? YES

Total number of Yeses 11

Rated by:_ Group (VR GG SK RPT) Rapid Plant Assessment Oct-12

Tour Date:______________ Table 1--Rating Sheet Plant:_Sharda Oil Mill

Ratings Poor Below Average Average Above

Average Excellent Best in Class

No Measure Score 1 3 5 7 9 11 Scores

1 Customer Satisfaction 1,2,20 9 9

2 Safety, environment, cleanliness, & order 3,4,5,20 5 5

3 Visual Management Deployment 2,4,6,7,8,9,10,20 5 5

4 Scheduling system 11,20 5 5

5 Product flow, space use & material movement means 7,13,12,20 7 7

6 Inventory & WIP Levels 7,11,20 3 3

7 People teamwork, skill level, & motivation 6,9,14,15,20 5 5

8 Equipment & tooling state & maintenance 16,20 5 5

9 Ability to Manage Complexity & Variability 8,17,20 9 9

10 Supply Chain Integration 18,20 5 5

11 Quality System Deployment 15,17,19,20 7 7

Totals 65 6

Study of a car engine manufacturing

Engine is the heart of any automobile and when it comes to an engine of a car which is

a vehicle used by millions across the world ,the following parameters are very important

for a car engine manufacturing company

While a study is conducted to identify areas of improvement while manufacturing or

assembly of an engine ,the following parameters are important and needs to look at

No of components in an engine and optimization ,if possible

Sources of the components and their cost

Mettallurgy of construction of each component

Manufacturing lead time to assemble the engine.

Quality requirements of the components to ensure long life of the engine

Cost of manufacturing.

Min inventory holding.

Fuel Efficiency and BHP

Reduction in the no .of parts being sourced

Optimisation of Vendors for sourcing

Reducing transportation costs

Normally a Car engine consists of the following components and is being sourced from

various parts of the world which is received in the engine assembly plant ,be it Honda

,Toyota ,Skoda ,Volvo or any other car engines

The car engine manufacturing companies source all the above materials from different

suppliers and assemble it in the plant

These engines are internal combustion engines and has the following components

Cylinder Blocks,Crankcases ,Pistons ,Piston Rings ,Piston pins ,Piston pin locks

,Connecting Rods ,Rod Bearings ,Shims ,Crank Shafts ,Camshafts ,Valve Lifters,Timing

Gears ,Valves ,Engine Bearings,Flywheels ,Cylinder Heads ,Oil Pans ,Manifolds ,Oil

Pumps ,water pumps ,Carburatos,Fand and Gaskets

We went through the engine manufacturing operations of Honda Car Engine .

Key information Annual Production – 2,40,000 engines per annum

Honda produced their first engine in 1989 The plant has the capacity to produce 1,000 engines per day Only Honda assemble both petrol and diesel engines on the same line More than 500 associates work across three different shift patterns

Business Processes

Honda Engine Manufacturing Process

Engine Material

Services

High Pr Die

Casting Machining &

Tooling

Low Pr Die

Casting

Engine Assembly

Engine Quality

Despatch

Business Process

High Pressure Die Casting

This facility produces the cylinder block. Aluminium ingots are loaded into furnaces and

melted. These furnaces are capable of melting 800kg of aluminium an hour and are

unique as they combine both the melt and holding furnace. The dies are then forced

together, at which point molten aluminium is poured into the shot cylinder and fired into

the dies at around 2.7 metres per second. Once casting is complete, the dies open and

the cylinder block is transferred to the inspection platform before being passed to

Machining Machining and Tooling

Machining

Here the block and head cast components undergo various cutting, milling, drilling, boring, honing and reaming operations. The layout of the Machining Lines is extremely compact, with Computer Numerically Controlled (CNC) machines achieving consistent high-precision results. Although the machines have a number of automatic test features, Honda associates still carry out manual checks at every stage to ensure a consistent level of quality is maintained.

Tooling

Associates who work in Tooling maintain and control all the specialist cutting tools used within both head and block machining.

Engine Material Services

Engine Material Service (EMS) receives component parts from all over the world. All parts for die-cast, machining and engine assembly are managed using ‘first in first out’ principles.

Low Pressure Die Casting

This facility produces the cylinder block. Aluminium ingots are loaded into furnaces and

melted. These furnaces are capable of melting 800kg of aluminium an hour and are

unique as they combine both the melt and holding furnace. The dies are then forced

together, at which point molten aluminium is poured into the shot cylinder and fired into

the dies at around 2.7 metres per second. Once casting is complete, the dies open and

the cylinder block is transferred to the inspection platform before being passed to

Machining

Engine Assembly

This is where the machined engine blocks, cylinder heads and clutch and transmission cases meet with the other engine components for the final engine assembly process. First the engine blocks, clutch and cylinder heads are sub-assembled on separate lines. At this stage the pistons, crankshafts, con rods and oil pan are installed into the block and the springs and valves are built into the cylinder heads. Once the sub-assembly process is complete, the modules are joined together to form the complete engine. The engine then undergoes a series of in-built process tests before being transferred by overhead conveyor to the Engine Control Centre. This houses a High Speed Server with a fully automated engine storage and retrieval facility

Engine Quality

The Engine Quality (EQ) Department's role is to support in the design and development of engine components right from initial concept to mass production. EQ also supports the Die Cast, Machining and Engine Assembly sections with process confirmation and calibration, as well as the maintenance of all inspection, measuring and test equipment. In addition, EQ is also responsible for four onsite dynamometers which carry out static, dynamic and endurance testing to quality assure all engine and transmission components.

Improvement Areas

The following areas could be focused

Performance Productivity –no of hours /engine

Layout –Space required per engine assembly

Inventories

Workforce : no of persons working per engine

Automation

Reduce WIP

No of stations in an operation

Suggestions

1. Form Cells

2. Sequential Operations

3. Decouple operator from machine

4. Reduce downtime during change over increases flexibility

5. Level and balance

6. Propagate low WIP to vendors

7. Reduce vendors

8. Make ontime performance part of expectation

9. Make it a pull systemSixSigma