Quality for product……………………………………………………… Quality certification……………………………………………………. Product layout…………………………………………………………. Products…………………………………………………………………... (GROUP 5) Page | 2 . Production plan………………………………………………………….... Aggregate planning…………………………………………………….. Procurement function………………………………………………….TABLE OF CONTENT Company profile………………………………………………………..

book orders and conduct promotion campaigns. laundry detergent. PAS3 & company was established in 2011. Retail outlets and door to door selling methods are not used. age range . white.plan suppliers . laundry/washing soaps. shikha. dish washing bar and bathing bar. fragrance.  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.Company profile . detergent powders with S3A2P formula etc.office equipments . PAS3 & company operate on the principle of appointing stockiest agents in all towns and cities. apurv. Products We are one of the leading small scale industry unit in Delhi NCR. Though sales staff is employed to supervise.purchasing material inventory .proceses type(auto or manual) . cake. 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. The policy is to aim at smaller profit and larger turnover.  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. This partnership firm under the guidance of shobhit mittal. anuj and paarijat has managed to conquer a segment of the market in Delhi NCR. manufacturing synthetic detergent powder. (GROUP 5) Page | 3 . under our brand name power.528 hours a month and6336 hours yearly.salary plans .compensations . the company is an partnership firm.labor force no of employees skill levels and types genders.retirement period. sanchi.

Pressure of Suppliers One supplier for a company can exploit the company. Threats of Substitutes: In the detergent market people have choices as they can take Surf Excel and Ariel alternatively. Therefore detergent company has 3 Suppliers for the purpose to bargain with them effectively. 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. Threats of new entrance: New coming brands of China and other smuggled brands are huge threat for company. 2. 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. 1. Made By: Paarijat – PGFA1131 (GROUP 5) Page | 4 .Competitive strategy In competitive strategy there are some sort of pressure on you.

Generally. inventory. Aggregate Planning for Production An aggregate planning is a process by which company determines levels of production capacity.  Carry backorders during the periods of peak demands. The following are some of the alternatives available for planning to meet the fluctuating demands. we usually shall assume that facilities are fixed and thus this alternative is not available to the planner. the demand rate varies over time and the associated problem becomes a dynamic planning problem but it is assumed to remain the same during a fixed period stated in the planning time horizon. (GROUP 5) Page | 5 . and it is the major control (driver) of all production activities. 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.  Use subcontracting in peak periods.  Vary capacity by changing the size of the workforce through hiring and firing. Since we typically are concerned with planning horizon less than a year.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. the goal of aggregate planning is to satisfy demand in a way that maximizes profit. stock outs and even pricing over specified time horizon. subcontracting.  Build inventories during the period of peak demand in anticipation of higher demand rates later in the planning periods. It uses information from both forecasts and orders on hand.  Vary capacity through changes in plants and equipment. inventory.  Use overtime in peak periods or under time in slack periods to vary output. and other controllable variables. 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. Aggregate planning links long-range and short-range planning activities. employment.

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. These include hiring and training costs and separation pay and other losses associated with firing or laying off workers.  Inventory holding costs. Made By: Anuj – PGFA1106 (GROUP 5) Page | 6 .  Costs of deviating from normal capacity through use of overtime or under time.  Shortage losses associated with backorders and lost sales.  Costs of increasing and decreasing workforce levels.

Inlet temperatures vary according to product. When the workstations are relatively few in number. (c) silicates. 2. the workstations and equipment are located along the line of flow of the work units. non-dusty. Normally the active ingredients are (GROUP 5) Page | 7 . Process Taken In Product Layout 1. Work is done in small amounts at each of the workstations on the work unit. (d) sodium sulphate. The fines fraction is usually returned to feed preparation. Washing Powders (Detergents. Soda Products : Detergent formulations consist basically of (a) an active ingredient (b) sodium tripolyphosphate. The exhaust air is drawn from the top of the tower. but lower temperatures are used for fine washing agents. they can be arranged in one straight line. Because the workstations do small amounts of work. Feeds are homogenized and fine-filtered prior to passing to nozzles operating at high pressure. work units are moved along a flow line which is powered by a conveyor. Product Layout is one of the three basic types of plant layouts. Co-current dryers are used for low . non-caking products in bead form are produced in countercurrent flow dryers with nozzle atomization is the preferred layout for high-bulk-density detergents.Product layout In a product layout. Surface Active Agents) : The free-flowing. And this also leads to a higher production rate. Hot air from direct-fired air heaters enters at the base of the cylindrical part of the tower with slight rotary motion. Up to 400°C (750°F) is used for some detergents. and the fixed-position layout. Open . This means that to use the product layout the total work must be dividable into small tasks that can be assigned to the workstations. which leads to high proficiency and reduced cycle time. Soaps. they can be arranged into a series of connected line segments.bulk . In more complicated plants such as the automobile final assembly plant. Usually. the stations are specialized in their tasks with specialized equipment and tooling. Product recovery from the drying tower is high (99%).cycle dryers are normally used. the other two are process layout.density detergents.

Dosing materials can be products that would damaged during spray drying. 250 275°C (480 .530°F) Made By: Sanchi Malhotra . Light -duty detergents are produced in nozzle towers with either co-current or counter-current flow. The product is dried in a counter-current-flow drying tower at inlet temperature 350 400°C (660 . lauryl alcohol.g.PGFA1140 (GROUP 5) Page | 8 . 3. Synthetic detergents are currently based upon linear alkyl benzene sulphonates. The dried powder leaves the base of the drying tower and is transported via a conveyor belt to an air lift. with no tendency to instability or lumping. enzymes. Precise weighing / metering. As high a solid content as possible is used (50 . 4. Perfume is added after the following air lift. The feed can be formulated batchwise or continuously. Comp slurry preparation systems ensure the right preparation technique which improves the quality of the final dried detergent powder.750°F).65%) to give the optimum powder bulk density and best economic use of the spray dryer. During passage on the belt.fatty alcohol sulphates. Light Duty Detergents Light . Bleach along with enzymes is also added at this stage. Choice depends upon required bulk density. product dosing is carried out. The coarse powder granules in bead form are free-flowing. Heavy . They find wide application only in dish washing and light household cleaning (janitoring). homogenizing and de-aeration take place before spray drying. e.duty detergents are used less than heavy duty. Inlet drying temperatures are also lower. Shelf-life is excellent. mixing.Duty Detergents Synthetic detergents are widely used in cleaning of all types and operate successfully with hard water. primary and secondary alkyl sulphonates and alkyl aryl sulphonates. Formulations are with variations as decided by each company. non-dusty and readily dissolve in water.

that it doesn’t produce any kind of poisonous effect on clothes. smells etc. 5. 3. 6.defined as “meeting specifications at the low cost and and customer’s satisfaction” -. ISO certification is mandatory for all manufacturers and service providers selling to multinationals or governmental organization.e. Safety: Assurance that customer will not suffer injury or harm from a product. Made By: Shikha Singh . It meet its quality needs worldwide i. these standards are not specific to any industry or product but are universally applicable and recognize.is a top priority for manufacturers and industrial operations. and specially important consideration for consumption by children.PGFA1143 (GROUP 5) Page | 9 . Quality has many aspects and Surf Excel provides value at preferable cost. Serviceability: It refers to how easily the product is available to the consumers when required. It is the application of quantitative methods and human resources to improve all the processes within an organisation. Aesthetics: It refers to how the product (Surf Excel) looks. Quality Management is continuously updated by ISO. Quality Management is a combined philosophy of management for continuously improving the quality of products and processes. standardized quality throughout India. Reliability: The chance that the product is completely vital to use .Quality For Our Product And Services Delivering products with high “quality” -.. Responsiveness: It refers to the turnaround time of customers. 2. 4. Customer Satisfaction: Whether the customer is satisfied after its use or not. which would hamper the quality in terms of human health and clothes. Measures for Quality of Power Detergent 1.

the ISO certification process has been criticized as being wasteful and not being useful for all organizations. Over a million organizations worldwide [4] are independently certified. the International Organization for Standardization. and available through National standards bodies.Quality Certification For Our Detergent ISO 9000 is a family of standards related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders. however. Hears et al (2002) found similarly superior performance and demonstrated that this was statistically significant and not a function of organization size. ISO 9001 deals with the requirements that organizations wishing to meet the standard have to fulfill. with a 2011 survey from the British Assessment Bureau showing 44% of their certified clients had won new business. making ISO 9001 one of the most widely used management tools in the world today. Corbett et al (2005) showed that certified organizations achieved superior return on assets compared to otherwise similar organizations without certification. Reasons for use The ISO family of standards is the only international standard that addresses systemic change. Chow-Chua et al (2002) showed better overall financial performance was achieved for companies in Denmark. A number of major purchasers require their suppliers to hold ISO 9001 certification. Many business firm’s showed that ISO 9001 certification resulted in superior stock market (GROUP 5) Page | 10 . a number of studies have identified significant financial benefits for organizations certified to ISO 9001. In addition to several stakeholders’ benefits. Third party certification bodies provide independent confirmation that organizations meet the requirements of ISO 9001. Many others identified similar improvements in operating performance and linked this to superior financial performance. The global adoption of ISO 9001 may be attributable to a number of factors. ISO 9000 deals with the fundamentals of quality management systems. including the eight management principles on which the family of standards is based. Despite widespread use. Nave and Marcus (2007) showed that implementing ISO 9001 led to superior operational performance. The standards are published by ISO.

PGFA1144 (GROUP 5) Page | 11 . Advantages It is widely acknowledged that proper quality management improves business. 9. and avoidance of litigation. often having a positive effect on investment. Enhances marketing 5. who says that "ISO 9000 guidelines provide a comprehensive model for quality management systems that can make any company competitive. the improvement is partly driven by the fact that there is a tendency for better performing companies to seek ISO 9001 certification. Promotes international trade 7.performance and suggested that shareholders were richly rewarded for the investment in an ISO 9001 system. awareness. though longitudinal studies. market share. Reduces waste and increases productivity. Increases customer satisfaction and retention 3. Common tool for standardization. Reduces audits 4. there remains no proof of direct causation. The quality principles in ISO 9000:2000 are also sound. such as those of Corbett et al may suggest it. competitive advantage. Made By: Shobhit Mittal ." Implementing ISO often gives the following advantages: 1. Increases profit 8. effective operation 2. such as success full business firm’s have suggested that while there is some evidence of this. While the connection between superior financial performance and ISO 9001 may be seen from the examples cited. and morale 6. Other writers. according to Wade and also to Barnes. Creates a more efficient. Improves employee motivation. sales growth. sales margins.

apart from the sales department. production and firm use is in a continuous process of development. This could lead to an overall increase in the business’ profit. particularly in its people. “The perception of "value added" is critical to every function/department in any organization in today's business environment. He said that a sharpened focus on buying can reduce a business’ costs by as much as 20%. what matter more is senior management's perception of the purchasing department’s actual contribution” ( 1993). There are four main recipients of value added by the purchasing department. With the increased focus on finding ways to economize on purchasing costs." It matters less what any person or group in purchasing thinks about their ability to contribute. processes. as more cost-effective and efficient ways are being introduced in the field of procurement. according to (1999): the organization. Unless there is a clear understanding at the senior management levels that purchasing does contribute at a significantly higher level of adding value. as cheaper prices. the procurement function has been elevated to a strategic component of creating value.PROCUREMENT FUNCTION: AN EXAMINATION OF ITS VALUE ADDED ELEMENTS The procurement philosophy of every organization must be to obtain the most suitable goods and services at the most reasonable contract prices. the employees. the biggest area of expense for most businesses is purchasing. the consumers and the suppliers.This maximization of the company’s resources in terms of the acquisition of materials for manufacture. less wastage in materials and fewer delays in the production of goods and/or provision of services are products of careful purchasing.d. (n. delivered when and where required . technologies and the framework under which they are governed and measured ( 2006). (GROUP 5) Page | 12 . Thus. he argues that no other area of the business could potentially have so much impact on the bottom line. The purchasing function has received considerable attention in the past decade as firms are constantly finding ways to increase the effectiveness and the efficiency of the task of acquisition.) stated that apart from salaries. then purchasing people probably will continue to be considered simply as "order placers.

etc) and to provide output like quality. It is the strategic and tactical procurement processes that deliver the big improvements that companies are seeking from their procurement functions (for example. demonstrates the flow of action that happens within the purchasing department. program manager. materials. By putting as much of manufacturing in the hands of suppliers. as in-house transactions require simpler and faster operations (the requisitioning activity will touch on the subject briefly). Mass. The value-chain demonstrates that the purchasing function has a major role in adding value to the organization” ( 2001). Each process will be discussed in detail including the value added elements that go with it. in Newburyport. If purchasing performs these activities effectively. services. The illustration of the purchasing process .'s Ion Technology Div. reduction in cost of goods sold. etc. 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. negotiation. outsourcing. explain (2006). 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.“The modern procurement organization is typically focused on delivering eight or nine key processes. this output provides the organization with a competitive advantage (see figure1). at Genus Inc. PURCHASING ACTIVITIES “For many buyers. Typical of purchasing professionals holding that view is . (GROUP 5) Page | 13 . The main value added by purchasing. according to (2001) is assuring the continuity of supply in the organization. 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. improvement in service levels)“. In the value chain analysis developed by (1985). Genus is able to deploy a greater percentage of its resources behind its core competency--product development and testing ( 1995). 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. The diagram is used for purchasing transactions outside of the firm.

with basically the same items as that of the in-house form but with additional particulars as the name of the supplier/suppliers.Requisitioning A requisition form always initiates the process of purchasing. brand or make. and an approval signature from the financial department. (7) signature of the person requesting and (8) approval signature of purchasing officer. Searle’s 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. company procedures and contact persons ( 1990). product code.e. The in-house form (which means that it is for use within the firm only) usually contains these following items: (1) date of request. The persons usually affixing their signature for approval are the finance or the budget department heads. unit price of the item/items. 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. a step-by-step guide to filling out forms. (5) date needed. They have also made it easier for the employees to request for items by providing a requisitioner’s handbook. etc. (3) particulars of the item/items requested i. This process could be made easier if there is a batch grouping for requisitions. 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. 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 (GROUP 5) Page | 14 . (4) unit and quantity of item/items desired. a purchasing order (PO) number for the reference of the supplier. when and where to deliver. As in the case of outsourcing materials. (2) name and department of the person requesting for the material.. The form is then forwarded to the purchasing officer. the purchasing officer will be the one responsible for filling up a form (this time to be sent to the supplier). This will be made easier by the allotment of a space for such purposes in the requisition form. Financial Approval This involves the authorization to go ahead with the purchasing commitment. (6) date of last request.

Only through considering the items enumerated above could this process contribute to value adding. an appraisal of the market should be done. After having picked the purchasing method and the supplier suited to the firm’s standards. Sometimes.employees (if the request is for office use) perform their respective functions in the firm’s structure. The principal methods of making a purchase are as follows: (1) tendering. should prices and other details be obtained by telephone or in writing?. and if so. (5) Are suitable period contracts available?. An excellent market assessment could prevent materials wastage. Purchase Decision The purchasing officer needs to determine the purchasing method he or she will use in acquisition. further delay of delivery and more strategic supplier selection. Being overly dependent on only a few suppliers could prove disadvantageous to the (GROUP 5) Page | 15 . the purchasing officer could then proceed to making the purchase decision. Decisions can be made through bidding or asking for price quotes from a range of possible suppliers. (5) period contracts and (6) indent purchasing. (3) emergency purchasing. 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. (2) selective purchase. Value added in the purchasing decisions comes in the strategic supplier selection. (4) Is it appropriate to call for "Registration of Interest". (4) bulk purchasing. (2) Is the volume/value of goods required sufficient to warrant calling for quotations and tenders. prior to inviting formal tenders?. Market Assessment Once the purchasing officer receives the approved requisition form. or can a lower price be negotiated?. (7) Could there be scope for a bulk purchase? ( 1991) After having attended to such considerations. should the sole supplier be given an immediate order. or is the establishment of an "approved suppliers" list warranted?. (3) If there is no competitive market. with these following considerations in mind: (1) Is there a competitive market for the item? . the officer could proceed to the rest of the acquisition process. (6) Is there a list of "approved suppliers" for the item. the purchasing officer has not decided yet on whom to buy from.

All the legal and other significant details should appear in the documentation. As such. This.company. A procedure which ensures that suppliers are paid in accordance with contracted  terms. frequent pre-delivery checks may be necessary. Documentation which acknowledges part-delivery of orders and allows follow-up on delivery of the remainder. the purchasing department could add to value by making sure that correct specifications are indicated in the order contract which will prevent incorrect delivery. there will be delay in the production process. 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. If these supplier potions fail to deliver. which in turn would produce top quality goods or services. time is maximized. (This double-check will help to maintain good supplier/purchaser relations). and the seller (the supplier). as this will form an agreement between two parties: the buyer (the organization). This should be documented. The system should include:    Checking with suppliers that delivery dates are still able to be met. Made By: Apurv Singh – PGFA1108 (GROUP 5) Page | 16 . like the method of delivery and the terms of payment. then. Processes in production which could be done without the ordered goods or services should be done while waiting for the delivery to arrive. The following-up of orders could also add value by ensuring that the lead time is used effectively. should be forwarded to the supplier. Value added can also be seen in the delivery method the business chooses. Ordering The officer in charge of buying materials will then arrange to order from the supplier. If timing is critical. The order contract should expressly reflect the transactions to be made. and delay means additional expense on the firm’s part. The firm should also establish a formal order-tracking system to ensure the follow-up of orders. In ordering. A record of supplier performance (1991).

(GROUP 5) Page | 17 .

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