A PROJECT REPORT OF POM SUBJECT
Presented to the Prof. Sandip Trada Tolani Institute of Management Studies
On April, 2010
By Group number: 4 Division B Batch 2009-2011
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Chirag padaliya Rajkumar patel Chetan pujara Milan Thacker
Production Operation Management | TOLANI INSTITUTE OF MANAGEMENT 1 STUDIES
Pintu Vaishnav Anil Vekriya
Production Operation Management | TOLANI INSTITUTE OF MANAGEMENT 2 STUDIES
We have completed our project at MATRIX CERAMIC LIMITED situated at Morvi city. The aim of the visit is to get some practical knowledge of the management fairs. which we gathered during our project in MATRIC CERAMIC LIMITED. In this report we tried our level best to accommodate all types of the information.
Production Operation Management | TOLANI INSTITUTE OF MANAGEMENT 3 STUDIES
As per the rules of the TOLANI INSTITUTE OF MANAGEMENT STUDIES (TIMS) in the syllabus of PGDM Semester – 2 each group of six students has to visit an industry.
therefore. hereby declare that project report is our original endeavor that the work being supervises by MR.2. Sandip Trada assistant professor of TOLANI INSTITUTE OF MANAGEMENT STUDIES. ADIPUR. at TOLANI INSTITUTE OF MANAGEMENT STUDIES.
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Chirag padaliya Rajkumar patel Chetan pujara Milan Thacker Pintu Vaishnav Anil Vekriya
Production Operation Management | TOLANI INSTITUTE OF MANAGEMENT 4 STUDIES
. Thus. the appropriate data and the required information’s were produced from the companies under study.
DATE: SIGNATURE: -
Roll no. acknowledge that the project has not been in any case submitted to any other institute of higher learning for any degree or diploma.DECLARATION
We undersign members of group number 4 are students of PGDM semester .
Kishore Patel (Chairman). Last but not the least we are grateful to all the staff members of Matrix ceramic limited. Mr. Sandip Trada who helped us as and when required with his guidance. Satish Patel (Production department). We are grateful to Mr.ACKNOWLEDGEMENT
We wish to express our gratitude to management of MATRIX CERAMIC LIMITED for giving us an opportunity to be a part of their esteem organization and enhance our knowledge by granting permission to do our project under their guidance. for their kind cooperation and help during the course of our project. We are also thankful to Mr. Mr. Raju Patel (Administration department) and all the employees of Matrix ceramic limited who guided us and provided their valuable guidance and cooperation during the course of the project.
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. They provided us all the information and support whenever needed that has been instrumental in completion of this project.
quality and standard. State-of-the-art ceramic goods are being manufactured in the country and the technology adopted by the Indian ceramic Industry is of international standard. mtr. Indian tiles are competitive in the international market. India ranks 7th in the world in term of production of ceramic tiles and produced 200 million sq. Ceramic products are manufactured both in the large and small-scale sector with wide variation in type. sanitary ware and crockery items.5% of world ceramic tile production Ceramic tiles industry has been growing at about 12% per annum.000 tons per annum in small scale sector. In India.500 tons per annum and. Japan and other countries there is full automation. This industry in India is highly labor intensive while in USA. size. mtr. There are. Pottery ware signifying crockery and tableware are produced both in the large scale and small-scale sector. The exports during last year were about Rs.15 sq. At present there are 7 units with capacity of 86. It comprises ceramic tiles. 16 units in the organized sector with an installed capacity of 21 lakh MT. There is significant export potential for sanitary ware. Majority of the production of ceramics tableware is of bone china and stoneware. per annum compared with 2 sq. Per annum in European countries. It accounts for about 2. With the growth in the housing sector the demand of ceramic is expected to increase.60 crore during current year. out of a global production of 6400 million sq. range. There are 16 units in the organized sector with a total installed capacity of 43. per annum in China and 5-6 sq. meters of ceramic tiles. meters during recent year.INTRODUCTION TO CERAMIC INDUSTRY
Ceramic Industry in India is about 100 years old. at present. there are about 1200 plants with a capacity of 3 lakh tons per annum. per capita consumption of ceramic tile is 0. In the small-scale sector.000 tons per annum. quality and standard. mtr. The exports were of the order of Rs. there are about 200 plants with a capacity of 50. This industry has been growing at the rate of about 5% per annum during the last 2 years. The industry has a turnover of Rs 400-500 crore. 180 corer. UK. These are presently being exported to East and West Asia. design and shapes in India are still below
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. Sanitary ware is manufactured both in the large and small sector with variations in type. Quality of finished products. Africa. These are exported to East and West Asian countries. Europe and Canada.
Equipment is old and need to be updated to meet international standard. ceramic glazed tiles and ceramic sanitary wares are manufacture and supply by Matrix Ceramic Industry in UK. The export of pottery ware during 2003-04 was of the order of Rs.international standards. ceramic floor tiles. Ceramic tiles. and India and all over world from last 5 years. 85 corer.
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. ceramic wall tiles. USA.
these long lasting tiles offer good quality. Proving superior to marble and granite tiles. With vibrant and eye catching colors. sizes and designs are at every nook and corner of the home décor coliseum to make your home look vivacious and lively.
Standing tall in the tiling arena. Fashionable sanitary ware in the finest designs gets a thumbs-up from designers and style gurus! More types are offer by us. floor tiles are complete scene stealers. attractive looks and thus are owner's pride. porcelain.
Hard core and strong vitrified tiles is an absolute choice as sturdy tiles for homes and offices. Decorating the flooring with the finest possible designs of ceramic. Tiles with diverse shapes.
Adorning the bathrooms and special rooms with the most elegant and stylish sanitary ware is the latest cult. the bathroom decorations make the space a visual treat and raise its glamour quotient. glass. Offered at the finest prices the wall tiles rejuvenate your space with style and give it a fresh look. Well-polished. granite and other form of tiles makes it absolutely breathe taking. Mind blowing floor tile designs and colors add to the beauty of the place and puts an 'A star' on its glamour quotient. In home improvement project. tiles are plays a very vital role and its necessary to choose best ceramic tile as per condition and budget.INTRODUCTION TO CERAMIC TILE INDUSTRY
Ornamenting walls with the most stunning and fashionable wall tiles is the latest buzz. these stain resistant tiles are scratch proof and demand low maintenance cost.
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by government and corporates. demand for houses is slated for growth. Various foreign Real Estate and Finance companies like GE Commercial Finance. Ascendas and Farallon Capital have entered the Indian market. bus terminals etc. The increasing focus on rural areas. both the organized and unorganized sector s play a very important role in India. The entry of two new product categories Vitrified tiles and Porcelain tiles has increased the size of the market considerably.CERAMIC TILE INDUSTRY IN INDIA
In India. Further India is expected to be among the top 5 retail markets in the world in 10 years. In India the construction sector is expected to do well in future mainly due to fiscal incentives given to infrastructure development.mt of extra office space must be completed in the premium office space alone. Ceramic tile industry emerged in the late 1950s. India is the prime destination for the IT services outsourcing. Investment commission report states that the retail sales were $206 billion in 2004 and is expected to grow three-fold in the next 10 years from $206 billion to about $660 billion by 2015. floor tile segment and vitrified and porcelain tile segment. In the coming five years at least 55 million sq. as they are found more suitable at places where there is more human traffic. the
Production Operation Management | TOLANI INSTITUTE OF MANAGEMENT 9 STUDIES
. Indian economy is poised to grow at 7-8 percent and with growing incomes and urbanization. In India the floor tiles segment is growing at a faster rate. Tishman Speyer. Organized retail was only $6. The Ceramic tiles particularly the vitrified tiles are finding increasing usage in both these sectors and the sector would benefit from an upsurge in these areas as well. As far as manufacturing of ceramic tiles is concerned. Like developed markets the financial institutions (both foreign and domestic) are beginning to show interest in the sector. The market for the wall tiles is rising at a relatively slower pace and this has resulted in high excess capacity in the wall tile segment.4 billion and is expected to grow rapidly to reach $100 billion by 2015. The Ceramic Tile Industry drives its demand from the Real Estate and Construction sector. Ceramic tiles find its maximum usage in residential and commercial buildings and are also finding acceptance in other construction projects as well like airports. Ceramic Tile Industry can be classified into three categories namely wall tile segment. It is expected that these products will gradually take away the market from the conventional ceramic tiles (wall and floor).
• The untapped rural market supported by a strong growth witnessed by Indian Agriculture provides tremendous potential for the domestic ceramic manufacturers. supply of power and gas remains the key cost-related issues impacting the industry.
• Freight. Another important driver is the distribution network of a ceramic tile manufacturing company. The ceramic industry will also benefit from the above developments.a.
• Not much importance given on brand building and network thus creating hindrance for export growth. p. Increasing demand is just one part of the story the availability of Finance is the other part. • Low per capita consumption (0. The distribution network is critical to success in this industry.15 sq.) as compared to developed nations.mt. With the availability of loans at low interest rate and tax incentives have enabled the people to buy houses and build up their own establishment.demand for housing would also increase in rural areas. • The Indian ceramic export market is rising at the rate of 15 percent per annum. With the increasing competition amongst both Banks and Housing Finance Companies the people are avail of getting better financing options and that too at a cheaper rate.
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• The construction and Housing Boom to provide bolstering demand for ceramic tiles. This would further increase the demand for tiles.
SWOT ANALYSIS OF CERAMIC TILE INDUSTRY
• Consistent growth of 12-15 percent in spite of slowdown in economy.
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.• Basic Customs Duty on import of ceramic tiles from China and raw materials imported from abroad should be corrected to prevent dumping of tiles from China.
its new plant Atom ceramic limited is under construction for production of wall tiles. pioneers and one of the largest selling designer tiles Company.
Facilities of Matrix ceramic Limited:
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. It is engage with production of floor tiles.INTRODUCTION TO MATRIX CERAMIC LIMITED
Matrix ceramic limited is ISO 9001 certified company situated at Morvi city. In the following images you will be introduced to the latest collection of the rarest. "The first among the equals" brand that rolls out through the state-of-theart Italian machines which are operated under the supervision of Italian technology team. The world of Matrix Ceramic. most unconventional and imaginative designer tiles you'd have ever set up your eyes on.
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Raw material inventory
Dryer line lineLine
• Average lot size of clay is 20 tons. but quantity of chemicals depends upon quality of Clay.
1 2 3 4 5
Raw Daily material requirement (In ton)
Morvi clay Kachchh clay Bikaner clay Chemicals Water 87 57 12 6 Up to 170
BOLL MILL: • Here various sizes of bolls are in boll mill. • Boll mill has batch process of 20 tons/2hr.RAW MATERIAL: • Requirement of raw materials except Chemicals are fixed in proportion. • Resultant uniformed mixture is directly entered into spray dryer.
SPRAY DRYER: • Grinding (Uniform powder) of lignite is used as a fuel of spray dryer. so during the rotation of tank. No. mixture of clays grinded by bigger size balls and uniformed by smaller size balls. • Lignite is responsible for problem of carbon dust in tiles. (Disadvantage)
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. a capacity of one truck.
PRESS: • It is a simple molding machine for mold tiles from dry clays. • Length of mold is 1500 mm. mixture of various clay flows from up to down & dry air flows from down to up. • Capacity of spray dryer is 180 tons/day. • Capacity of press is 1400 HP. • Stroke means one up & down movement of press mold.
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. • Press has minimum 6 and maximum 14 strokes per minute. so as a result mixture of clay become dry or moisture free. o Corner brittleness. instead of standard requirement of 200 HP. • There are 2 major criteria for adjustment of press stroke: o Thickness of tiles. • Desired temperature for production of floor tiles is 200 C. within this tile size is adjusted.In spray dryer.
• Color chemical quantity will vary with quality of dried raw materials. o Design printing. • There are 2 types of color printing: o Background printing.• Raw tiles after pressing directly enter into dryer line. • Here company has maximum 3 workstations in glaze line for maximum 3 colors printing. (Half of Killen length) • Natural gas is used to maintain or achieve temperature in dryer.
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GLAZE LINE: • It is an assembly line during where. • Temperature of dryer line is 100 C. GLAZE DEPARTMENT: • This department prepares color mixture for background printing on tiles. • On an average 1 tile spend 26 minutes in dryer. prepared glaze color applied on glaze. (Boiling point of Water) • Desired length of dryer line for wall tiles is 40 meter.
SORTING: • Finally tiles are divided in 4 different grades.size (1 mm)
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. 06. 12. • Temperature of Killen is 1170 C. second. • Tiles are graded on following most common problems: o Carbon dust o Glaze dust o Improper printing o Crack in body o +. maintain by natural gas. third and Reject grades in the ration of 80.dimension o +. and 02.KILLEN: • Length of Killen is 90 meters. • Killen is divided in 3 zones.
PACKAGING: • Different color boxes are used for different grade tiles. LABORS: • All are on contract basis. SAFETY EQUIPMENT: • Hard hat cap • Ear protection • Safety gloves • Back belt
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. STORAGE OR WAREHOUSE:
• Entry & exit of raw materials has separate path for movement of finish goods. • Multi skill workers. because production of first class goods is also 80% of total production. it almost takes gas of 5 lakh rupees to achieve 1170 C. • Production will continuously run for 24 hours in 3 shifts. • All are on rotation base work. • If production is stopped. • Each box contains 10 tiles or 10 feet2. PRODUCTION SCHEDULE: • Two days prior planning. • First red arrow shows entry direction & Second arrow shows exit of direction. • Here first class goods occupy almost 50% of total warehouse area.
BENEFITS OF LOCATION
• Favorable labor climate: o Labors are Cheap & disciplined. Kachchh is almost nearby Morvi. company can minimize material handling cost & waste of raw materials. • Proximity to resources: o Clay of Morvi.PRODUCTION PLANT LAYOUT
• Production plant is designed in such way that. Hospital (Multispecialty hospitals). • Proximity to market: o Morvi emerges as a ceramic hub. o Morvi is directly link with National Highway -8. So buyers come at Morvi to purchase Tiles.B. • Transportation facility: o Kandla & Mundra ports have been distance within 200 km.
PRODUCTION PLANT LAYOUT
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. • Quality of life: o Morvi has very good facilities regarding Bank (Almost all nationalized bank as well as Private also). o Almost all type of consultancy services has been situated in Morvi.
o Supplier relationship process: Company also make on time payments to their suppliers.
Here workers are working in their respective department only. o Logistic activities: Generally. • Right now company produces 5000 boxes / day. Company has very strict policy regarding credit time of customer. company change its supplier quickly.
• Company has a capacity of producing 6000 boxes / day. o Welfare of workers: Company provides one time health checkup in one month for their workers & Employees. If company found some quality related problems of raw materials. Company schedule the production in such a way that minimize set up cost as well as time. o Customer relationship process: Company focus on time delivery of tiles. Company cannot be changed worker to other department because special skill is required for particular department. o Recruitment: Company has not defined recruitment system. transport of goods has been carried out by its suppliers & customers. (Minimum switching cost) • Supportive processes:o Raising fund: Company raises funds from its owner only.
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. • So capacity utilization of company is approximately 83% (5000 / 6000). Company scheduling its production to ready goods one day prior than promised date.• Core processes:o Order fulfillment process: Here company focus on the planning of production schedule of various varieties of tiles.
o Assemble to order: Matrix produces tiles from 60 tons of materials. because output of one station is input of other workstation. so sometime Matrix sell raw materials to other ceramic company on the base of order.•
Workers can be adjusted within department in different work stations.
MANUFACTURING PROCESS STRUCTURE
• Structure of manufacturing process is continuous line flow.
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• Here manufacturing process is able to produce only one type of product (Floor tiles). • Manufacturing process has been carried out in 24 hr. Matrix daily send its inventory report to somany. Somany almost sells 60% of total production of Matrix. while its spray dryer capacity is almost double than it. Is only major client of our company.
• Company has been follow 2 types of production strategy: o Make to stock: Somany ceramic Ltd. so it has fixed automation.
• Company use push strategy. it produce popular varieties of tiles. because huge cost is incurred to achieve 1170 C in Killen. then Somany gives an order based on its inventory report. Company has not been focus on some innovative design of tiles. & 360 days in a year.
we can say that if company removes Glaze dust & Carbon dust error. Company is able to improve quality by 75%.10 9 8 7 6 5 4 3 2 1 0
Glaz dus C e t arbon dus D ention t im
S e iz
120 100 80 60 40 20 0 Gla dust ze C rbon a dust D ention im S ize D efects
By use of Pareto chart. • But practically. 1 Capabili Priorities ty Cost Low cost leadership
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. Company can minimize its defects. it is impossible to remove Glaze & Carbon defects completely.
CAUSE AND EFFECT COMPETATIVE PRIORITIES & CAPABILITIES
No. • Safety stock of Morvi clay is very less. (Spray dryer & Boll mill have more capacity) • Company has to order Press. so most of transportation activities have been done by Road. Dryer & Killen from only one Supplier Company because it is interrelated with each other. because it is very easily accessible. • Company try to maintain its quality. still company try to deliver goods at promised date.
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. company must have to change all these equipments. (Preventive cost) • Morvi has not linked with rail track. 1 2 3 4 5 Raw material Morvi clay Kachchh clay Bikaner clay Chemicals Water Daily consumption 87 57 12 6 Up to 170 Safety stock 20 160 120 10 NA
(Figures are in ton) Lot Cycle size inventory 20 10 20 10 20 20 NA 10 10 NA
• Here suppliers of chemical are available in Morvi.
Here bottlenecks are Press. so lot size is not fixed. so company replace its all moving parts of plane after every 3 years. Dryer line & Killen because it constrains production. • Company has around 10 types of different varieties and 45 types of designs for floor tiles. • Company cannot increase production by simply increasing capacity of any one from them.
Sr.2 3 4
Quality Time Flexibilit y
Consistent quality On time delivery Variety
• Company focus on low cost leadership. by reducing unnecessary expense of company.
• Cycle inventory is half of lot size.
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.• Company has been very conscious to maintain safety stock of Bikaner clay. because lead time of this clay is almost 1 week to 10 days. • Here lot size is depend upon capacity of truck. generally is has capacity of 20 tons.