Projectreportoninventorymanagement Prakirngupta 130906114655

A Project Report on
Reconciliation and Wastage reduction of raw

materials during value addition process at Henkel
Teroson India Ltd.

Prakirn Gupta
Roll No. 9811204454

Under the guidance of

Mr. Pramod Bawa, GM
Henkel Teroson India Ltd
Gurgaon

Institute of Management Technology
Ghaziabad
2
PROFORMA

NAME : PRAKIRN GUPTA
ROLL No. : 0811001951

PERMANENT ADDRESS :
929, LAXMAN VIHAR, PHASE - II
GURGAON 122001
Contact No. 9811204454
E mail ID : prakirng@yahoo.co.in

DESIGNATION AND OFFICE ADDRESS :
MANAGER - PURCHASE
PEARL POLYMERS LTD
PLOT- 2A, SECTOR - 18
GURGAON - 122001

NAME, DESIGNATION AND ADDRESS OF GUIDE :
Mr. PRAMOD BAWA, GM,
HENKEL TEROSON INDIA LTD,
74, IDC, MEHRAULI ROAD
GURGAON - 122001

3
TABLE OF CONTENTS

Chapters Page No.

Acknowledgement 5

1. Introduction :
a. Problem Introduction 7
b. Objectives of the study 9
c. Scope of the study 11
d. Methodology 13
e. Limitations of the study 15

2. Existing Systems
a. System for Incoming Raw Material Inward 18
b. Unloading process for liquid materials 22
c. Production Methods 24
d. Store & Machine Layouts 25

3. Research methodology
a. Research Methodology 27
b. Data Collection 38

4
4. Literature Review
a. Material Mass Balancing 57
b. Value Stream Mapping 66
c. Tools and Techniques of Data Analysis 70

5. Data Analysis
a. Data collected through Questionnaire 75
b. Data Analysis 90

6. Conclusion & recommendation 104
7. Company Profile 110
References / Bibliography 113

5
ACKNOWLEDGEMENT

I am glad to express my heartiest appreciation to
all those with whom I worked / interacted and whose thoughts
and insight helped me to enhance my knowledge and
understanding of the project study.

First of all, I will express my gratitude to Mr.
Pramod Bawa, my project guide for guiding and keeping me on
the right track during the project. I would also like to thank
people, factors and situations who contributed to the successful
accomplishment of the task. Though I am unable to mention all
of them individually, my depth of gratitude to them is no less.

I bear the sole responsibility in case of
shortcomings, if any.

prakirn gupta

6

CHAPTER I

INTRODUCTION

a. Problem Introduction :
7

Working title of this project is Reconciliation and
wastage reduction of raw materials during value addition process. It has
been under taken at 74, IDC plant , one of Production Unit of Henkel
Teroson India Ltd (HTIL) out of five manufacturing locations in India. In
the beginning, it is necessary to provide, information regarding nature of
work carried out in the organization.

Henkel Teroson (HTIL) is manufacturing around 180 different kind of
Automotive Sealants and Adhesive products for which at least 400
different kind of raw materials are used. 50% of raw material is sourced
from within the country whereas 50 % of inbound materials are imported
only from Henkels globally approved suppliers. Huge quantity of
imported materials forces HTIL to keep sufficient amount of inventory.
On the other HTIL has to supply finished goods on the concept of Just-
in-time for which production has to schedule in such a way that product
shortage doesnt occur to avoid any production line stoppage at
customer end.

Material reconciliation has been little difficult. There are thoughts of
material wastage during the process of value addition as well.

The biggest problem however is of severe space crunch. Henkel
Teroson (HTIL) at Gurgaon has two plants by the name of 74 IDC and
64 IDC.

74 IDC has total floor area of 9234 Sqr.ft. and 64 IDC has total floor
area of 6963 Sqr ft. (Floor plans attached).
8

The present existing process on Material reconciliation is little difficult
due to space crunch and hence is a complicated one. There are various
thoughts of material wastage during the process of value addition.

9
b. Objectives of the Study :

Proper control over raw materials, intermediate products, final products
and the associated waste streams are now being recognized by industry
as an important waste reduction technique. In many cases waste is just
out-of-date, off-specification, contaminated, or unnecessary raw
materials. The cost of disposing of these materials not only includes the
actual disposal costs but also the cost of the low cost raw materials or
product. There are two basic aspects to inventory management:
controlling the types and quantities of materials in the plant inventory;
and controlling the handling of raw materials, along with the finished
products and waste streams in the production facility.

The former aspect, referred to as inventory control, includes
techniques to reduce inventory size and hazardous chemical use while
increasing inventory turnover. The latter aspect, referred to as material
controls, includes methods to reduce raw material and finished product
loss and damage during handling, production, and storage. Handling
waste as if it were a product helps reducing waste and increasing the
potential for recovery.

The project objective is to study the material flow and institute material
wastage during the value addition process, finding out reasons for the
same, tracking reasons for difficulties in material reconciliation and
formulating plans for improving the existing system.

10
Project objectives:

To study the material flow and institute material wastage during
the value addition process.

To find out the reasons for the same, tracking reasons for
difficulties in material reconciliation and formulating plans for
improving the existing system.

To optimize individual and group efforts for minimization in
wastage and to achieving the organizational goals efficiently
and effectively by cost savings.

Here the objective of this project is to reengineering the
existing value addition process to reduce wastage of Raw Materials
during the Value Addition Processes and to have better control on
inventory management.

11
c. Scope of the Study :

The scope of the study is in problem solving process in manufacturing
companies and that too specially in fast growing Automobile sector. In
Automobile companies in addition to the Original Equipment
Manufacturer (OEMs) there are huge set up of components
manufactures. The overall turnover of Henkel (Components
manufactures) is greater even than the certain OEMs.

In order to achieve objectivity, it is necessary to Understand :

The existing system for Inward Raw Materials.
Lay out of Present Raw Material Stores.
Manufacturing Lines and Machines
Modification in work operations and any corrective action
suggestion.
Checking for continuous improvement.

First of all , There is a immense need to Understand, the Working
Environment In which whole store functions and method of usage of
Raw Materials as input.

Data are collected through observation method, interviewing
method and questionnaires method. Direct observation method is used
to understand the existing process. The personal interview with Middle
Management, Shift Supervisors, Maintenance Incharge, Store Incharge ,
Security Guards and Work Force has been carried out. The data
sources of the organization was also studied. This personal interviews
12
and internal data sources study provided a clear idea regarding current
Waste level and System of raw material inward.

In order to understand the customers actual requirements and
level of satisfaction questionnaires method is used. These
questionnaires were given to different workers in all the three shifts. After
receiving the responses those are thoroughly analyzed. A feedback
control system has been developed. This feedback system continuously
compares output of new changes and clients satisfaction level achieved
with standards. If the standards are not achieved then corrective
measures are to be carried out. In case the requirements are achieved a
slightly higher than standards, they are fixed as our aim is to achieve
these standards. Thus, it ensures the continuous improvement.

The studies show that the highest attrition is found in the Work Force
and Supervisory categories. The Supervisory and workers categories
experience lesser attritions. Hence the scope of the study was designed
to concentrate on that particular segment of higher attrition. This
segments includes the Workers and Supervisors who are generally
employed in Store and working on Machines in all the three Shifts.

13
d. Methodology :

Methodology is the specification of the method for acquiring the
information needed to structure the study.

There are Some basic strategies to minimize wastes are as follows:

Inventory management
Inventory control
Material control
Production process modification
Operation and maintenance procedures
Material change
Process equipment modification
Volume reduction
Source segregation
Concentration
Recovery
On-Site recovery
Off-Site recovery

Proper control over raw materials, intermediate products, final products
and the associated waste streams are not being recognized properly at
Henkel India (HTIL) as an important waste reduction technique. There
are two basic aspects to inventory management: controlling the types
and quantities of materials in the plant inventory; and controlling the
handling of raw materials, along with the finished products and waste
streams in the production facility.
14
To apply these strategies following techniques were identified for this
project to successfully minimization of Waste through production process
modifications.

1. Mass flow balancing
2. Value Stream mapping
3. ABC analysis
4. Theories of Total quality management.

15
e. Limitations of the Study :

Following Limitations were observed while study carrying out on the
project :

1. Lack of time: - Mass flow balancing technique require process
sequencing and continuous time bound studies on a particular chosen
batch till the batch production is completed (End of Batch cycle time).
There are approximately 200 Nos. of Finished goods, which HTIL make
to feed OEMs monthly requirements. Out of these, Approx. 80 Nos.
products are regular in demand as well as in regular production. These
80 Nos. regular finished goods comprises 65 % of the volume of total
monthly production. Since my self is employed and It was not possible
for me to exercise Mass Flow Balancing and Value stream mapping
study on each & every finished products. Hence as a sample, certain
regular finished products were selected to conduct the studies..

2. Since HTIL is using approximately 400 Nos types of Indian and
Imported raw materials. Hence this Study could not be conducted on all
the raw materials / products, hence random FG products were selected
for the study. Various Raw materials are common in usage.

3. It is a general phenomenon, due to casual attitude of people working
at lower ranks, it is very hard to get informations from them.
Respondents lack of time and unwillingness to give information due to
their casual attitude was a big hindrance in the study.

As this project is limited to Gurgaon, its findings cant be taken as the
findings for other Henkel plants in the India because other plants are
16
newer than Gurgaon Plants with advanced machines (Blenders etc)
and equipments. The other plants have different kinds of machines with
extra capacities than Machines available with Gurgaon Plants. Hence
studies carried out in Gurgaon can not be co-related with the other
HTILs plants in India.

17

CHAPTER II

EXISTING SYSTEMS

18
a. System for Incoming Raw Material Inward

In this chapter, I have discussed the existing process for incoming Raw
materials into Store. This process has different procedures for incoming
Powder and liquid raw materials.

As I have mentioned earlier that Henkel Teroson (HTIL) is manufacturing
around 180 different kind of Automotive Sealants and Adhesive products
for which at least 400 different kind of raw materials are used. 50% of
raw material is sourced from within the country whereas 50 % of inbound
materials are imported only from Henkels globally approved suppliers.
Huge quantity of imported materials forces HTIL to keep sufficient
amount of inventory.

The biggest problem however is of severe space crunch. 74 IDC has
total floor area of 9234 Sqr.ft. and 64 IDC has total floor area of 6963
Sqr ft. (Floor plans attached in the last of this chapter). Monthly
inventory level is Approx. 750 MT. Owing to space constraints ,
maintaining of store activities, reconciliation of stock is little difficult
work.

The procedure for accepting Imported in-warding raw materials is
different then Indian raw materials. And raw material accepting criteria
for bulk materials and liquids bulk materials are different than small
items.

Certain Imported items are very old and their past quality record are
good and these certain items are declared as self certified and used
without any pre quality testing. While various bulk and fast consuming
19
Indian items are unloaded after sample testing and approval of quality
tests. For Example Plasticizers like DOP/ DINP/ Exxsol D 80 etc.

Certain Materials are unloaded without testing but are used only after
getting the sample testing and quality validation. In such materials
quality testing lead time is 3 5 days. Small pilot batches are made,
results are validated before approving the quality standards. For
Example Neo light SP etc.

The whole process is summarized in below steps.

Step 1 : The Raw Material is received at receive reported by Security
Guard.

Step II : Store Officer checks whether all the raw materials are
available as per the Purchase order and material is unloaded in the
Material under Testing Area

Step III : Random Sampling is done as per the sampling plan. Sample
is sent to QC department for Quality testing with Sample Requisition
Slip.

Step IV : The Quality Assurance Department checks the Physical &
Chemical properties of sample material as per the methods and
generates the test report for Quality Approval or non Approval.

Step V : In case of Quality Approval, material is shifted to OK Store
for production purpose.

20
Step VI : In case of Non quality approval, Supplier is intimated and whole
rejected lot is sent back to Supplier.

Step VII : Fresh material is received and whole procedure Step 1 to VI is
repeated.

Step VIII: Due to bulk materials and space constraints, Store Areas are open
and are available at different locations. Hence these store can not be put into
Lock.

Step VIII : Whenever required, Production department issues the Production
plan and Material requisition slip to Store and store issue the materials by
updating their store records.

21
Flow Chart :

No
Yes
Quality officer
carries out Physical
& Chemical test
Material is shifted to
Store , Store records
are updated

Sent back to
Supplier
If Result
Satisfacto
ry
Material are
unloaded into Under
Testing Area and
sampling is done
Physical Condition
and Quantities are
verified from P.O.
22
b. Unloading process for Liquid Materials Tankers :

The Unloading Process for Liquid Plasticizers materials are summarized
below : (See the flow Chart also)

1. Bulk Plasticizers are transported by suppliers through 16 MT or
20 MT tankers

2. On the arrival of Tanker, Physical checking of tankers is
thoroughly carried out for any leakage of discharging valves, any
mal practice by tanker drivers in Transit. Sealed broken or Intact
etc.

3. Sampling of plasticizers is done from each cuppa of tankers by
removing initial 20 25 lts plasticizers, to avoid any moisture,
rust , dust within pipe line.

4. Tanker is moved to two nos. local weighing balances in the
custody of Store officer and Security Guard.
5. Dip measurement is carried out for the existing storage tankers
by dip rods to measure current stock available in empty storage
underground or overhead tanks.

6. Meanwhile Quality Test Report is received from QC. In quality Ok
condition, Discharging Flange are fitted on discharging vales of
tankers.

23
7. Motor fitted flexible plastic pipes are fitted connecting to Tankers
flange and mouth of empty tanker through flame proof electrical
motor. And motion tanker is unloaded into the empty tanks.

8. After emptification of Tanker, emptification is verified by
searching inside the tanker through Torch light and quantity
unloaded is verified by dip measuring of filled under ground
or over head tanks in the presence of Store officer. In dip
measurement, previous dip measured quantity is reduced.

9. Again, empty tanker is weighed in the custody of Store officer
and Security Guard at destine two previous weighing balances.

10. Average Weight (In Kgs) of said plasticizer of weighment slips
are verified with cross checking of suppliers invoiced quantity.
only 0.5 % shortage due to transportation loss is accepted as
quantity received as full for commercial purpose only while for
inventory purpose actual quantity received is recorded into
inventory stocks.

11. Empty tankers are released to return to supplier after weight
verification.

12. Now the said plasticizer is available for use to production
department. It is issued to production (in Kgs.) on the material
requisition slips (MRS Slips) received from production.

13. Here it is found there is no control of Store in issuing the liquid
plasticizers to production. The production department has control
24
over it and they use or can manipulate the quantity what ever
they are doing. This is the grey area of possible wastage.

c. Production Methods :

Since Sealants are of two types :

1. PVC Based
2. Mastic (Rubber) Based

For both types of Sealants different types of machines are used. These
are :

1. Blender # 1 ( HT # 1) Capacity 4 MT
2. Blender # 2 (HT # 2) , Capacity 4 MT
3. Double Planetary Mixer (DPM), Capacity 1 MT
4. RAM Press for Discharging
5. Double Planetary Mixer (DPM), Capacity 400 Kgs
6. RAM Press for Discharging
7. Sigma Mixer Capacity 500 Kgs
8. Sigma Mixer Capacity 300 Kgs
9. Kneader Mixer Capacity 300 Kgs
10. Triple Roll Mill (TRM)
11. Mahale Filters
12. Static Filters
13. Churners.

25
PVC Based sealants are made in PVC Blenders and Double Planetary
mixers while Mastic sealants are made in Sigma mixers and kneader etc
RAM Press , Triple Roll Mill are supporting units..

Both Sealants are manufactured by the application of Blending
technique. In blending technique, is a chemical processing technique in
which various ingredients are combined in such proportions as to give a
product of some desired composition.

The overall production method for the both types of sealants are same,
Blending operations are performed under vacuum at ambient temp ( <
30
o
C) at high speed.

d. Store & Machines Layouts :

Following Layouts are attached for Store. Since Henkel store approx
750 MT inventory in more than 400 Nos Raw materials hence large
space are occupied by store which are very congested. Layouts are
self explanatory.

1. Layout of Liquid Raw Material Area ( 74 IDC, Ground Floor)
2. Layout of raw Material Store (74 IDC, Ist Floor)
3. Layout of Raw Material Store for Racks (74 IDC 2
nd
Floor)
4. Layout of Liquid Raw Material Area ( 64 IDC)
5. Layout of raw Material Store, Bags (64 IDC)
6. Layout of raw Material Store (64 IDC, AC Room I)
7. Layout of raw Material Store (64 IDC, AC Room II)
8. Layout of DPM and RAM Press
26

CHAPTER III

RESEARCH METHODOLGY

27
a. Research Methodology

The term waste minimization means the reduction, to the extent feasible,
of waste that is generated prior to treatment, storage, or disposal of the
waste. Industrial waste minimization technologies include source
reduction, pollution prevention, recovery, and reuse. Application of
technologies that decreases waste percentage per unit production and
increase in Raw material chemical dosage, improve efficiency. Of the
industrial waste minimization processes carried out in Henkel Teroson
plants, source reduction is usually the lowest cost alternative, particularly
for improving management and production process.

Data have been collected through observation, personal interviews and
questionnaires methods from internal sources. Primary data are those
collected specifically by or for, the data user for a definite purpose. There
is intervening party to summarize the original data. As the original data
from each unit or respondent are available, they can be re-tabulated or
reanalyzed in as many different ways as choose. Primary data can be
tailored to needs. In this case, data are primary in nature. Data have also
been collected from internal resources of organisation.

It is possible to classify questionnaires studies on a variety of
bases. Three such bases, which are of importance, are :

(a) The degree to which questionnaires is formalized or
structured.
(b) The disguise or lack of disguise of the objectives of
questionnaires.
(c) The communication method used.
28
Questionnaires studies can be conducted either with or without
formal lists of questions. When no formal questionnaires is used,
interviewer adapt either questioning to each interviewee as it progresses
or perhaps elicit responses by indirect methods, such as sowing pictures
on which the respondent comments. The process of following a
prescribed sequence of specific questions is referred to, as structure
study while other is non-structure. Questionnaires can be constructed so
that objectives clear to the respondent, or they can be constructed so as
to distinguish the objective.

When information to be collected by asking questions to people
who may have the desired data, a standardized form called
questionnaire is prepared. The questionnaire is a list of questions to be
asked to respondents. Each question is worded exactly as it is to be
asked and the questions are listed in an established sequence.

Questionnaire construction is still much more of an art than a
science. Questionnaire construction is basically a nine step procedures.
These nine steps are as follows :

(i) Decide what information is wanted.
(ii) Decide what type of questionnaires (Personal interview, mail,
telephone)
(iii) Decide on the content of individual question.
(iv) Decide on type of question.
(v) Decide on wording of question.
(vi) Decide on sequence of questions.
(vii) Determine form layout and method of questionnaire
reproduction.
29
(viii) Make a preliminary draft and present it.
(ix) Revise and prepare the final questionnaires.

Type of questionnaire used : This above discussion gives a brief
idea regarding classification questionnaires and method to be used for
eliciting information from customers. The aim is to measure satisfaction
level of customer.

In order to elicit information from Workers and Supervisors
structured, disguise and multiple-choice questionnaires is
formulated. Further, in order to formulate these questionnaires
necessary attention is given to nine steps as mentioned above.

Type of Communication : These different methods of communication
with questionnaire are available :

(i) Personal interview
(ii) Telephone
(iii) Mail

In this case, Telephone & mail survey method is not applicable .
Mail survey method is used where a vast area is required to cover and a
huge number of customers are taken for consideration. In mail survey
method there is no interviewer to explain the purpose of study, to ask the
questions, to record the answers and in general to cope with the
problems. Mail surveys are particularly versatile in reaching all type of
people, in different geographical area, in urban or rural areas at the
same cost.

30
Thus, from above discussion it can be written in brief :

Type of questionnaires : Structured, disguised,
multiple choice.
Type of communication : Personal Interview.

A copy of questionnaires is given below :

QUESTIONNAIRE
Please Tick ( ) the Right Answer
1. Do you check the conditions of Mixers and In process equipments before batch
starting. Water Leakage from Jacket of Mixer, Vacuum air Leakage from Discharge
Valve and from Rubber Gasket will increase the moisture in batch and hence batch
may be rejected.

Every Once On Problem
Batch a day Existence

2. Do you check & confirm the standard packing size weight of raw materials bags
before charging into mixers . Weight of Raw Materials bags may varies..

Every Every Random
bag batch lot Selection

3 Do you verify the Liquid & Powder raw materials cans / bags emptied completely
during or after raw materials charging into mixers.

Yes No Randomly

4. Super 40 is Exothermic, it is used in all finished goods to repel moisture from batches
during process. Presence of moisture in batch will increase poor Bonding and hence
there are chances of Rejection of batch or Reprocess of batch. To avoid moisture , Do
you Check the exothermic property of Super 40 ( > 120
0
C) before addition into each
batches.

31
Every Lot Randomly
Time Wise

5. Do all In-process machines & testing equipments like Weighing Machines, Vacuum
Gauge , Ovens Thermometers , Glass Thermometers are get calibrated periodically.

Yes No Not Known

6. In-Process Temperature of the running batch is kept under control during batch
processing as per batch process standards (Standard Manufacturing Process).
Processing of PVC at more than 30
0
C will tends to Gelation on Batches.

Yes No Not Aware

7. During Filtration, On filter Choking, do you bypass the filtration process. Unfiltered
material will be rejected at customer site.

Never Slightly Frequently

8. Preventive Maintenance schedule is followed to avoid Water Jacket leakage, Vacuum
machine failure, Torn of Gear boxes of High speed mixers, Non Functioning of
Weighing Balances .

Strictly On demand Never

9. Are all the Incoming Raw Material tested as per Standard Quality Test methods
at the time of receiving.

Random
Completely Partially Selection

10. What Happened when such a Raw materials is found of sub quality standard.

Rejected and Used under Alternative
Returned to supplier Deviation RM is Used

32

11. What are the In-Job Training schedule.

Monthly Half Yly Quarterly

THANKS FOR THE YOUR CO-OPERATION.

Measurement of response rate : It is very important to determine
response rate of Questionnaire. Response rate may be defined, as
number of completed questionnaire received divided by number of
participated workers.

However, in our case I have selected all the workers in all the
three shifts. i.e 35 workers, which are working on Double Planetary
Mixers (DPM), PVC Blenders, Sigma Mixers, Triple roll mills and RAM
press machines, these are eligible to response through questionnaire. In
order to determine response rate to questionnaire, following table is
useful :

Eligible Non-Eligible Response Obtained Non Response
35 0 29 6

From the table it is clear that out of 35 workers 29 workers responded to
the questionnaires and 6 workers did not response to it. Hence,

33
29
Response rate = -------- X 100% = 82.86 %
35

The response can be reflected in the pie chart as given below :

Figure 3.1

Personal Interview : In order to obtain crucial information, personal
interview with Maintenance Engineers, Personal Manager, Shift
Supervisors, Store In-charge, Store officer and Workers working in Store
has been conducted. Personal interview is a method of data collection
where face-to-face contact with person from whom information is to be
obtained occurs.

However, personal interview can be classified according to their
basic characteristic as given :

No Resonse
17.14 %

Response Response
82.86%

34
CLASSIFICATION OF PERSONAL INTERVIEWS

Personal Interviews

Formal Interview Informal Interview

Fig : 3.2

In formal interview, the interviewer presents a set of well defined
questions and notes down the answers of informants in accordance with
prescribed rules. Here, emphasis is given on the order and sequence of
questions. In informal interview the interviewees has the freedom of
alternations of questions to suit a particular situation. Questions may be
recorded, revised or rephrased to suit the needs of respondents.

Thus from above discussion it can written interview conducted is
basically informal interview. However, during this interview following
rules were observed as :
Allowed maximum opportunity of self-expression to the
interviewee.
It was a free and frank interview.
Interviewee was heard with full interest.

During personal interview some useful information were obtained.
Information obtained regarding are listed as follows :

35
Personal Department

Actual Man-hours working against Standard man-hours permitted
for their job duties.
Working on Over Time duty and reasons (in this case interviewee
took help of internal data base)
Work package.
Job retentions ratio.
Population Ratio.

Maintenance Department

No. of Machine Brake down, severity of Brake Down (in this case
interviewee took help of internal data base)
Specified machines which goes under Brake down. (interviewee
took help of internal data base)
Specific reasons for Brake Down. And time period in which
machine get repaired. Any corrective action Taken in past.
Equipments Calibration cycle and past History. (in this case
interviewee took help of internal data base)
Available technicians / engineers in last five years.
Preventive Maintenance schedule.

Production Department

Production level of last five years (in this case interviewee took
help of internal data base)
In Job training and Skilled Matrix.
36
Basic Education level.
Awareness about Finished Goods and Raw Materials Properties
Awareness about handling of Raw Materials.
Awareness about machines operations.
Precautions about raw materials and machines.
Raw materials consumptions record and entries into system
(interviewee took help of internal data base)

Store Department

Awareness about Finished Goods and Raw Materials Properties.
Raw materials Handling methods for safety purpose.
Raw materials storage norms and storing conditions.
Inventory Levels. (interviewee took help of internal data base)
Raw materials procuring lead times. (interviewee took help of
internal data base)
Medical First Aid awareness.
Efforts on RM wastage minimizations.
Raw Materials Receipt and Issuing activities. (interviewee took
help of internal data base)
JIT etc..

Observation Method : Observation is the process of recognizing and
noting people, objects and occurrence rather than asking for information.
This is the most commonly used method of data collection aspect in
studies relating to production management and behavioral sciences.
Accurate watching and noting down phenomenon, as they occur in
37
nature or at shop floor with regard to cause and effect, is called the
observation method of data collection. In this case, direct observations of
the overall process have been made.

This direct observations was done to collect following data :

To identify what Workers , technician , Shift Supervisors are
actually doing in workshop.
How much time technicians spend effectively on working
equipments.
What is the actual time required for completion of various
operating steps in the process.
Time spend in between operating steps for value stream mapping.
Total activities time and process time ratio.
Time spend effectively on equipment as a percentage of total
process time.
What are the raw materials storing conditions and how material
reconciliation activities are being carried out.
Raw Materials Inward system and finished goods outward.

38
b. Data Collection

In this case, at Henkel Teroson, raw Materials are categorized as per
their inherit properties and end usage. See Figure 3.3, Raw materials
are categorized into 9 Nos. of the main categories, in which all the raw
materials are grouped.
Classification of inventory item : The inventory of all categories
of items cannot be determined by using same method. This is because
some of items are consumed very less, some items consumed in very
large quantity and some items consumed in average quantity. Therefore,
ABC analysis is used for inventory items.

ABC analysis : ABC analysis is always used for better stand.
According to this analysis, all the inventory items are divided into three
categories as A type, B type and C type depending on their cost and
quantity of consumption. The differences between these types of items
are summarized below :

CRITERIA A TYPE B TYPE C TYPE
Quantity 10 % 20 % 70 %
Annual Usage 75% 15% 10%
Control Very Strict Moderate Less
Ordering Weekly Bimonthly Yearly
Safety Stock Less High Highest

Figure 3.3 : ABC analysis - RM Categories

39
At, Henkel (HTIL), monthly consumption of raw materials is
approximately 750 metric tone. Below mentioned table, is derived from
ABC Analysis, shows their monthly consumption volume and
percentage contribution as per their groupings. ( Fig. 3.3).

Raw Material
Category
Monthly
consumption (In MT)
Percentage
contribution
Fillers 330 44
Plasticizers & Solvents 210 28
PVC Resins 127.5 17
Adhesion Promoters 30 4
Rubbers 11.25 1.5
Stabilizers 7.5 1
Thixotropic Agents 3.75 0.5
Miscellaneous 30 4
Total 750 100
Figure 3.4 : ABC analysis - RM Categories
Monthly Raw materials consumptions

Fillers
Plasticizers & Solvents
PVC Resins
Adhesion Promoters
Rubbers
Stablizers
Thixotropic Agents
Misc.

Figure 3.5 : Contribution of RM Categories

40
FAMILY : A (Seam sealant, Underbody coating)

1. ANSEAL 123
2. ANSEAL V22
3. TEROLAN 792 I
4. TEROTEX 3558 I
5. TEROTEX 3010 / 100
6. TEROTEX 3041 / 15
7. TEROTEX 3599 / 5
8. TEROLAN 1909 AAIN
9. TEROTEX 3860
10. TEROLAN 4209 / 50S
11. TEROLAN 5955/ TEROLAN 1946 LV
12. TEROLAN 5950
13. TEROLAN 3041/ 16
14. TEROLAN 1946M/ TEROLAN 1946 LV
15. TEROTEX 3599M
16. TEROTEX 6008-272
17. TEROLIN 3558 F
18. TEROLIN 1946 F
19. ANSEAL 125
20. ANSEAL V22D
21. TEROPHONE 4910 AAIN
22. TEROPHONE 4912 AAIN

FAMILY : B (MASTICS)

ANSEAL V58 H
ANSEAL Z73 H
ANSEAL Z73
ANSEAL Z71 S
ANSEAL Z41
ANSEAL E56
TEROKAL 5027
TEROSTAT 3207
ANSEAL A26
ANSEAL Z55 M
ANSEAL V58 M
ANSEAL E54
TEROKAL 4520
TEROSTAT 3213
TEROSTAT 3215

FAMILY : C (PUTTY)

ANSEAL 124
TST 1163
41
ANSEAL Z800

FAMILY :D (EPOXY ADHESIVE)

1 ANLITE 297

FAMILY : E (RTV SILICONS SEALANTS)

ANSEAL S70

FAMILY F (PLASTISOLS)

ANCOR 5520
ANCOR 5710

FAMILY H (NON (CURING 2)

1 ANSEAL B33C
2 ANSEAL B33N

FAMILY :I (MASS-BUTYL SEALANT)

1 TEROSTAT 273

FAMILY : J (MASS-NVH PRODUCTS - 1)

3 HSTM 102 ADHESIVE
4 HSTM 301 P
5 HSTM 301 G
6 HSTM 203 H
7 DYNAFIX 7116

FAMILY : K (MASS-NVH PRODUCTS -2)

8 HSTM 102 BLOWING
9 HSTM 451 WIE

FAMILY : L (PREFORMED TAPES)
TEROSTAT 273
TROSTA 2710

42
FAMILY : M (PILLER FILLER)
HSTM 102
HSTM 451WEI

FAMILY : N (REINFORCEMENT PAD)
HSTM 301G
HSTM 301P
DYNAFIX 7116
TEROCORE 1900

FAMILY : O (ANTIVIBRATION PAD)
HSTM 203H

FAMILY : P (SEALING STRIPS)
TEROSTAT 962
ANSEAL Z900
ANSEAL Z91A (SS20AAIN)

FAMILY : Q (PILLAR FILLER INJ. MOULDING)

TEROPHON 6081
TEROPHON 6140

FAMILY : R (PRIMER REFILLING)
TEROSTAT 8517H GLASS PRIMER
TEROSTAT 8521 BODY PRIMER

43
74 IDC

Monthly demand of finished goods manufactured at 74 IDC and
Machines employed.

Product
Monthly
demand
(MT)

Machine
employed

processing
time for each
batch(hrs)
ANSEAL A26 40 LAB DPM 8
ANSEAL B33N( PULSAR) 400 DPM 9
ANSEAL B33N-AAIN-T 2000 DPM 10
ANSEAL E-54 15 LAB DPM 12
ANSEAL S 70 400 LAB DPM 10
Anseal V-22/MUL-cost red. 40000 BLENDER 14
ANSEAL V-22ED 24000 BLENDER 14
Anseal Z 901 0 SIGMA 10
ANSEAL Z55M 40 LAB DPM 9
Anseal Z-71S 1400 DPM 9
ANSEAL Z71S(H) 10000 DPM 9
ANSEAL Z77 20000 DPM 9
ANSEAL Z-900 100 SIGMA 10
ANSEAL-860 4000 NIDDER+DPM 12+2
ANSEAL-B33N 4000 DPM 9
ANSEAL-E56 2000 DPM 14
ANSEAL-Z41 3100 DPM 10
ANSEAL-Z800 600 SIGMA 10
BPR 500 DPM 9
Cavity Wax AP-21 2000 PARWANOO
CEMEDIENE S 440- T 2000 DPM 12
CEMEDINE S 340 6000 DPM 9
CEMEDINE S-440 2000 DPM 9
CEMEDINE S-440-NEW DPM 9
CURING PASTE FOR 1027 373.79 TRM
CURING PASTE FOR 1108 32.30 TRM
DYNAFIX-7116 ORIGINAL
FROM SAIM FRANCE 6000 SIGMA 12
HSTM 102 BLOWING MASS 3102.40 NIDDER 4
HSTM 301G(GETZ) 0 NIDDER
HSTM-102 ADHESIVE
COMPOUND 1500 SIGMA 16
HSTM-102 BLOWING
COMPOUND 3500 TRM 5
HSTM203H 1000 NIDDER 5
HSTM203HT 4500 NIDDER 5
44
HSTM-451 (M) 10 TRM 16
HSTM-451W BLOWING MASS 187.92 NIDDER 5
HSTM451WEI 200 LAB SIGMA 7
IMPERMASTIC 1108 4200 DPM 9
IMPERMATIC 1027ACBV 1200 DPM 11
PASTE 3207 0.30 LAB DPM 9
PASTE ACCELERATOR (Z800) 10.86 HX MIXER 1.5
PASTE BPR 0.00
PASTE C BLACK(DINP) 1094.80 DPM 6
PASTE CELTON 0.08 HX MIXER 2
PASTE CURING(Z55M) 1.44 TRM 1
PASTE D-3 3791.81
SIGMA or
NIDDER 8
Paste D4 for S440 0.00
SIGMA or
NIDDER 8
PASTE D-5 2645.88
SIGMA or
NIDDER 8
PASTE DPL PT 0.61 TRM 1
PASTE FOR ANSEAL 860M 3480.00 NIDDER+DPM
4X6 NIDDER + 6
HR ON DPM
paste for cavity wax AP-21 847.00 HX MIXER 5
Paste for V-22 ED 30.00 BLENDER 16
PASTE GM 212.79 TRM 3
PASTE GM FOR S440 49.24 TRM 3
PASTE HEXAMINE 142.39 TRM 3
PASTE INTER.PDT (Z55M) 1.52 TRM 1
PASTE KETZEN BLACK(A26) 2.77 LAB DPM 9
PASTE KNEADED RUBBER
PASTE Z800 179.16 SIGMA 4
PASTE M-10 4072.98
NIDDER or
SIGMA 8
PASTE TACK DINP/DIDP 39.33 TRM 3
PASTE TIO2 WITH DINP 35.00 TRM 3
PASTE Z61S 282.19 TRM 3
PASTE-QUINTON 25.49 TRM 1.5
PST AC 1000 FOR S 440 96.00 TRM 2
PT - 590 10225 BLENDER 22
Resin solution for Cavity Wax 889.60 HX MIXER 4
Rot1& Gelb paste 64.00 TRM 3
RUBBER PASTE FOR 1108 1660.26 NIDDER 7
Rubber paste for S-440 3935.32
SIGMA or
NIDDER 8
Terocore 1900 (Mass) 200 SIGMA 10
TEROCORE-1414 400 SIGMA 10
TEROKAL 4520-34GB 1200 DPM 16
TEROKAL 5027 30 LAB DPM 6
TEROKAL-4520-34GB-H 600 DPM 12
Terolan 792/Honda 25000
BLENDER or
HT1/HT2 22
45
TEROSTAT 3207 10 LAB DPM 9
TEROSTAT 3213-138 300 DPM 10
Terostat 3213-138( M &M) 4500 DPM 10
TEROSTAT 3215 H/41 (GMI) 25 LAB DPM 8
TEROSTAT-2710 7000 SIGMA 12
TEROSTAT-273 2000
SIGMA or
NIDDER 8
TEROSTAT-273(AN) 1500
SIGMA or
NIDDER 8
TEROSTST-2703 AAIN 250
SIGMA or
NIDDER 9
Terotex 3600/Mark Auto 200 BLENDER 16
TEROTEX 5955 LV 10000 BLENDER 24
TEROTEX 5972AC 7150 DPM 10
Terotex-3028 9000 BLENDER 24
TEROTEX-3860IDW 32000 BLENDER 16
TEROTEX-6008 3500 DPM + TRM 16+6
TKL 4520 50 LAB DPM 6
Tln 792-Jamshedpur 2000 BLENDER 22
TRA paste 39.42 TRM 4
TST 273-MUL 6000 NIDDER 8
TTX 3558-H-Cost red 35000 BLENDER 22
ttx 3558-telco jamshed 8000 BLENDER 28
XM1305 PST FOR Z-77 3177.60 NIDDER 5
Z 900 ( MUL) 5 SIGMA 10
Z-900 ACCELERATOR PASTE 2.40 HX MIXER 1.5

64 IDC

List of finished goods manufactured at 64 IDC is as follows:

Product Dimensions Customer/Model

TST 273 - Hyundai 6x2.5mm; 24 mtr Hyundai
TST 273 - Telco 3.5 mm; 5 mtr Telco(Pune)
TST273 3mm;5 mtr Telco(Jamsedpur)
TST 273 - MUL 5 mm, 5 mtr MUL
TST 273 - GMI 5x3 mm;24 mtr GMI
TST 273 - GMI 5x2.3 mm;24 mtr GMI
TST273 Mass A.N
HSTM 102 4x30x135 JBM
HSTM 102 5.5x40x150 JBM
HSTM 102 5.5x40x115 JBM
46
HSTM 102 5.5x40x475 M&M
HSTM 102 5.5x20x675 M&M
Z900 6x500 AUTO.STAMP.
TST 273 5x25x10 VOLVO
HSTM 451WEI 1.2x50x215 MCI
TER1414 1.0x80x360 INNOVA
TER1414 1.0x80x250 INNOVA
HSTM 203S 1.8x180x310 L- Model
HSTM 203S 1.8x135x195 M - Model
HSTM 203H 1.6x100x250 Ace
HSTM 203S 2x120x350 VOLVO
HSTM 203 S 1.8x185x75 MUL
HSTM 203 S 2x100x165 TOYOTA
TST 2703 2x40x405 REPL
HSTM 102 5.5x40x105 JBM
HSTM 102 5.5x60x145 JBM
HSTM 102 4.5x30x180 Sonata
HSTM 102 5x30x95 Hyundai
HSTM 102 8.5x60x120 Hyundai
HSTM 451WEI 6.5x30x40 ICML
HSTM 102 5.5x40x95 M&M
HSTM 102 2.5x40x300 MUL/TKM
HSTM 451WEI 8x20x300 MUL
Z91 1.2x10x170 GMI
Z91 1.2x10x550 GMI
Dynafix 7116 1x150x260 HONDA
Dynafix 7116 0.9x180x75 MUL
Dynafix 7116 1X150X280 TM
Dynafix 7116 1x100x200 ICML
Dynafix 7116 1x75x150 ICML
Dynafix 7116 0.9x80x215 M-Model
Z-900 2x50x200 MUL
Z-900 6.5x18x200 HONDA
Z-901 8x13x260 HONDA
TER 1900 2.0x150x210 GMI
TER 1900 2.0x110x170 GMI
TER 1414 1.1x170x200 TOYOTA
47
HSTM 102AD 20 mm; Rolls
TST 8517 10 ML
TST 8517 100 ML

Raw materials being procured for value addition process are as follows:

74 IDC procures more than 400 raw materials. However following is the
list of prominent items:

BAGS

Sr.
No.
Item code Item desc
1 WAF005 4610-Tixogel
2 NVHF0025 AC 1000(AZODICARBONAMIDE)
3 NVHI019 ACCICURE-BSM
4 NVHI012 ACCINOX B RODS
5 NVHF037 ACCINOX TDQ
7 OTF014 ADDITOL VXL 1105
8 PLF006 ADIKA ED 503
9 CUF021 AER HARDENER D-610
10 NVHF085 AEROSIL RY - 200S
11 FLF055 AF-240
13 NVHF048 AJICURE PN23
14 APF028 ALRESEN PA-101
15 FLI004 ALULMINIUM SILICATE
16 FLF026 ALUMINIUM SILICATE(64041K)dexie
17 OTF127 ANTIOXIDANT OMB (59001G-372755)
18 TAF006 ARBOCEL BWW-40
19 APF020 BAKELITE HARZ 022(45091M)
20 CUF011 BARIUM SULPHATE
21 FLI009 Barium Sulphate Off Colour
22 FLI008 BARIUM SULPHATE SuperSnowWhite
23 NVHF003 BASO4-BARIUM SULPHATE
24 FLI010 BENITE-100
25 OTF017 BENZOQUINONE DIOXIME
48
26 CUF016 BHT powder(59012T)
27 NVHF001
BK 1675N(SOBUTYLENE-PRENE CO-
POLYMER)
28 PRF019 BORDEN VC 260-S
29 NVHF0011 BP-32E(BARIUM ZINCORGANO COMPLEX)
30 NVHF0019 BR 01(POLYBUTADIENE RUBBER)
31 RUF003 BUTYL RUBBER 065
32 RUF001 BUTYL RUBBER 268
33 RUF013 BUTYL XL 1000 (27011K)
34 TAF003 CABOSIL M5
35 TAF002 CABOSIL TS 720
36 FLI001 CALCITE
37 MEI001 CALCIUM OXIDE
40 FLF056 Calsec Po
41 API007 CAPOLYTE CP-90
42 DYI001 CARBON BLACK - HAFN-330
43 DYF007 CARBON BLACK (66196C)
44 DYF011 CARBON BLACK-ELFTEX 12
45 DYF016 C-Black-P287H
46 NVHF0026 CELLEX-A (SURFACE COATED UREA)
47 OTF011 CELLIMIC C22
49 OTF160 CELSTAR T 36
50 OTF010 CELTON NP
51 NVHF086 CG 1400
52 OTF118 CH CL-220
53 FLF021 CHINA CLAY
54 RUF023 Cht 100
55 RUF034 CLEANING RUBBER
56 MEF001 CML 31
57 OTF157 CP 0565
58 OTF117 CP 0765
59 NVHF005 CP 427 PVC RESIN
60 APF001 CURAZOLE 2PHZ
61 OTI001 DCO
62 TAI002 DEG(500ml)
63 RUF003 DEGLAN
64 NVHF0031 DENKABLACK
65 NVHF061 DER-671
66 APF002 DESMODUR BL-175
67 POF004 DIANA PROCESS OIL NM-280
68 ACF004 DIANAL LP 3105
69 FLI011 DICAL-S(TC-301)
70 OTF005 DIERLON 6500
71 OTI019 DPL-80
72 OTI018 DPL-PT
49
73 FLF014 DUALITE-M 6001 AE
74 CUF014 DURALINK HTS
75 DYF002 DYE GELB
76 DYF003 DYE ROT 1
77 OTF067 DYHARD 100 (51055V)
78 OTF068 DYHARD 100S (51075 R)
79 HSI001 DYHARD 100SH
80 CUF323 DYHARD UR 300
81 OTF015 EDAPLAN LA 411
82 RUF017 Efrolen P 150
83 NVHF087 EH 3366 S
84 CUF024 EH 3636 S
85 NVHF069 EP-96
86 EMF002 EPICLON-4901
87 CUF012 EPICURE-108 FF
88 EMI001 EPOXY PG-100
89 APF019 ESCOREZ 1102
90 APF003 ESCOREZ 1202
91 PLI098 ETHANOL
92 APF006 EURETEK-507
93 NVHF051 EXPANCEL 091 DU140
94 OTF027 EXPANCEL 092 DU 120
95 RUF016 EXXON BUTYL XL-1000
96 APF009 FACTIC 2
97 FLF067 FEF
98 FLF078 FIBER
99 FLF033 FILLER CC
100 FLI002 FORCAL So
101 PRF018 FORMOLON F40
102 POF001 FUKOL P-100
103 POF003 FUKOL P-400
104 DYI005 GREEN DYE-2724
105 APF026 GRILBOND 9477 (149773)
106 EMF006 Grinolit RV-1812
107 NVHF0029 H-130W (HYDROGENATED HYDROCARBON)
108 NVHF0013 H3842(MODIFIEDDICY)
109 FLF001 HANKUNKA CCR
110 DYI006 HBL 53
111 HSI059 Hexamethyl
112 CUI001 HEXAMINE
113 EMF012 HME-500
114 FLF035 HUBERCARB Q325
115 FLF015 HYDROCARB
116 RUI001 IPCL 1220
117 PLF007 IPU 22G
50
118 PBF003 ISOBUTULENE
119 RUF007 JSR-BR31(BUTADIENE RUBBER)
120 FLF010 JURAPERLE BS 100(omyacarb 4hd)
121 FLF045 K WHITE
122 RUF028 KALAR 75 (CROSS LINKED BUTYL RUBBER)
123 FLF048 KANSUI NO. 70
124 DYF001 KETZEN BLACK EC-10
125 NVHF0016 KR450(DGEB-A)
126 OTF158 KYOWANOL - D
127 PRF009 LACOVYL PB-1302
128 NVHF0030 LIR 410(MODIFIED POLYISOPRENE)
129 NVHF0010 LP090(PVC RESIN PASTE GRADE)
130 OTF017 LS 770
131 NVHF009 LS100(PVC STRAIGHT)
132 TAF005 MAGNISIUM OXIDE
133 TA0F51 MBT
134 CUF002 MBTS BAYER
135 TAI001 Meg
136 NVHF046 MICA N280
137 FLI007 MICA POWDER
138 OTF227 MICRO GLASSBEADS
139 OTF542 MICRO MICA W-160
140 FLI015 Microchina 4080-for TST 273
141 FLI012 Microncarb 2 Microns
142 OTF080 Micropearl 102 D
143 OTF163 Micropearl F-78D
144 OTF165 Microsol
145 NVHF049 MILLISIL C 400
146 RUF021 MIRAVITHEN D-18002
147 NVHF002 MML 140-POLYISOBUTELENE
148 OTF003 MS POLYMER 20A/203
149 DYI010 N 234 PB- CARBON BLACK
150 FLF171 NATRIUM-BICARBONATE
151 FLF044 NEOLIGHT 60
152 FLF022 NEOLIGHT SP
153 FLF043 NEOLIGHT SS
154 FLF045 NEOLIGHT -T
155 APF010 NIKANOL NP 100
156 RUF025 NIPOL 1009
158 CUF003 NO. 918
159 OTF007 NO.210
160 OTF006 NO.320
161 CUF015 Noccelar TRA
162 CUF004 NOCELLAR F
163 CUF005 NOCELLAR TS
51
164 CUF006 NOCRAC NS 6
165 NVHF044 NOIR FLAMMRUSS 101
166 OTF161 NOPCOSTAT HS
167 RUF012 NR TUBE RECLAIM (T-1010)
168 CUF007 NUC SILICON 187A
169 OTI002 OLEIC ACID - RANBAXY
170 FLF023 Omaya 10
171 FLF054 OMYACARB-10
172 FLF041 OMYACARB-6-AL
173 FLF007 ORGANITE
174 NVHF0014 OXIDE BLACK
175 PRF305 OXY 6338
176 PRF024 PBM-6-Kaneka Kanevinyl paste resin
177 PRF025 PCH-72- Kaneka kanevinyl Paste Resin
178 CUF010 PF RESIN (45042 J)
179 API010 PF resin-Powerplast 1815 for TSt 273
180 WAI082 Pfinder 4300
181 WAF002 Pfinder 4600
182 EMF013 PG-207P
183 OTF019 PHTHALIC ANHYDRIDE pta
184 FLF024 PLASTORIT 0000
185 OTF130 PLEX 4087 F (380260)
186 OTF131 PLEX 4893 F (108274)
187 API012 POLYAMINO AMIDE-SUNMIDE 135
188 PBF002 POLYBIS 10N
189 RUF014 POLYBUTADIEN CIS-1 4 (26034Y)
190 RUF027 Polybutadine
191 PBF008 POLYBUTENE HV-1900
192 PLF011 POLYBUTENE-10 (37026W)
193 RUF010 POLYISOBUTYLEN (35008C)Tetrax
194 NVHF0015 PolyPox 1000
195 DYF005 PRINTEX G
196 DYF015 PRINTEX U POWDER (66038F)
197 POF13 Process oil f-262
198 PRF001 PVC RESIN LP-170
199 PRI001 PVC RESIN-120
200 PRI002 PVC resin-124
201 APF015 QUINTON U 185
202 NVHF0015 R1415-1(DGEB-A)
203 APF023 R-1636-2
204 Taf004 R-805
205 DYF012 RAVEN 1170
206 DYI004 RC RED DYE
207 RUF027 RECLAIM RUBBER
208 HSF006 REOFOS 65
52
209 OTF132 RHENOFIT ZBS
210 OTI016 RT-115
211 CUI002 Rubber Chemical
212 NVHF055 RUTAPOX VE 3726 / epr 881
213 FLF045 CARBON BLACK
214 OTF080 SASOL WAX
215 NVHF0027 SBR1778 (STYRENE BUTADIENE RUBBER)
216 FLF170 SCHIEFERMEHL DIN 130/16900MF
217 OTF002 SCONOC #5
218 NVHF078 SCOTCHLITE VS 5500
219 HSI001 Shita Stab
220 APF012 SHONOL5904
221 FLI006 SILICA POWDER
222 APF030 Silquest A-1100
223 FLF016 SL-300
224 PRF023 Slovenyl EP
225 FLF005 SOCAL -322
226 FLF003 SOCAL U1S1
227 FLF025 SOCAL U1S2
228 OTF162 Sodium Hydro oxide
229 PRF002 SOLVIC-266 SF
230 PRF003 SOLVIC-372 HA
231 PRF012 SOLVIC-373 MC
232 PRF004 SOLVIC-374 MB
233 PRF022 SOLVIN 561 SF
234 APF029 STAYBELITE ESTER-10
235 APF029 STEARIC ACID
236 FLF047 ST-FM
237 CUF013 SULPHER (57030P)
238 OTF162 SUNATTACH
239 MEF002 SUPER 40
240 MEI003 SUPER 40- LOCAL( CaO)
241 NVHF045 SYLOTHIX 53
242 FLF027 TALC (64176G)
243 FLF037 TALC (AT-1)-for 2460
244 FLF032 Talc matsu
245 FLI003 TALC POWDER indian
246 FLI017 Talc Powder-H for Tst 273
247 FLF006 TALC SS
248 FLF023 TALKUM NANINTCH C-60
249 HSI003 TBLS
250 nvhf034 TC
251 NVHF0032 TCR (CALCIUM CARBONATE)
252 NVHI017 TDCURE-TMTD
253 NVHF066 Terocore Mass(Tacky)
53
254 OTI046 Terolan 8293
255 EMI003 TETA
256 FLF027 THIA EPOXY TD011
257 CUF008 TINUVIN 327
258 DYI002 TIO2 - Anatise - Kilburn
259 HSF005 TITANE-KA-100
260 NVHF0018 TM-506(BUTYL TIN MALEAT ESTER COMPLEX)
261 NVHF0020 TR1101(STYRENE BUTADIENE RUBBER)
262 OTF151 TRACOMB PO 3142
263 NVHF0023
TS (TETRAMETHYL THIURAM MONO
SULPHIDE)
264 RUF002 UBEPOL BR 150
266 RUF026 UBEPOL VCR - 412
267 NVHF0033 ULTRA MARINE BLUE
268 APF014 VERSAMID 66
269 FLF169 VERTAL 1500
270 PRF005 VESTOLIT-E7031
271 PRF008 VESTOLIT-P1353 K
272 FLI014 Vimcrocarb 1250
273 PRF006 VINNOLIT-C14/60V
274 PRF014 VINNOLIT-EX 69CQ
275 PRF021 VINNOLIT-P-70F
276 PRF013 VINNOLIT-SA 1062/7
277 PBF001 VISTANEX LMMH
278 CUF009 VOLNOC GM
279 DYF006 VULCAN XC-72R
280 FLF009 WINNOFIL T
281 FLF008 WOLLASTONITE
282 NVHF008 YD011GLYCIDYLEATHEROFBIHENOL
283 NVHF007 YD128DIGLYCIDYLEATHEROF BIHENOL A
284 NVHF081 YD134
285 OTF115 Z900 BLOCK
286 OTF116 Z91A BLOCK
287 NVHF0012 ZEOSIL155
288 PRF027 Zest pbzxa
289 PRF011 ZEST PNHA RESIN
290 HSI004 ZNO
291 HSF003 ZnO (65139D, FOR 2710)
292 FLF008 Flex 91 AF1

Liquid

Sr.
No. Item code Item desc
54
1 APF022 34051M-DUPLEIX SEALER
2 WAF004 4235-oil
3 WAF001 4438-calcium sulphonate
4 NVHF0021 A-2(PETROLEUM HYDROCARBON)
5 ACF001 ACRONAL 18D (RM TEROKAL 3199)
6 API001 ANLAK-313
7 WAF003 AP 21/1 concentrate
8 WAI001 Benzoplast (CPS 300 TBN)
9 EMF004 CARDOLITE NC 513
10 POI003 CORTIS - 220 OIL
11 PLI002 DBP
12 NVHF053 DER 331-VE
13 POF004 DIANA PROCESS OIL NM-280
14 PLI004 DIDP
15 PLF008 DIETHYL HEXYLSEBACATE
16 OTF008 DIMETHYL CYC.PHTHALATE
17 PLI005 DINP
18 NVHF006 DOA
19 PLI001 DOP
20 PLF002 EDENOL 190/EDENOR
21 EMI003 edonol 344
22 POI001 ELASTO-245 OIL
23 POF010 ENERPAR-3036
24 EMF009 EPI REZ 58005
25 EMF001 EPICLON TSR 515
26 NVHF077 EPIKOTE 834
27 NVHF054 EPIKOTE 872
28 API012 EPOXY RESIN EFW
29 EMI006 Epoxy resin Epikote 828
30 EMI005 EPOXY RESIN GY 260
31 EMI001 EPOXY RESIN PG 100
32 PLI003 ESO-IVAMOL SN
33 SLI014 Ethanol for cavity wax
34 APF006 EURETEK-507
35 SLI009 EXXSOL D-80
36 EMI003 GY-250
37 NVHF052 HYCAR 1300X8
38 RUF022 HYCAR CTBN 1300 X 13
39 PLI006 Indofil G-54-Polymeric plasticiser
40 NVHF068 INDOPOL H 18000 (37017L)
41 PBF005 INDOPOL H-18000
42 PBF004 INDOPOL H-300
43 SLI010 ISOPAR-L(S)
44 PRF022 JAYFLEX 77
45 OTF172 JEFFAMINE D-2000
55
46 WAF010 Jeffsol PC- Propylene carbonate
47 APF024 LAROMIN C 260
48 OTF151 LYON
49 TAI001 MEG
50 PLF005 MESAMOLL
51 SLI007 METHANOL
52 SLI016 MRPL-10/14N
53 SLI004 MTO - B.P. MAKE
54 SLI013 MTO-low flash point (14/20)
55 NVHF082 N-30 L (Acrylonitryl Butadine Copolymer)
56 WAF011 Novares C 10- resin for underbody wax
57 POF002 NP.24
58 OTF020 OCTYLTIN THIOESTER
59 POF014 OEST SPEZOIL V 2409
60 NVHF004 PB1400-POLYBUTENE
61 NVHF0017 PLEXXIGUM V(TRIMRTHYLOPROPANE TRM)
62 PLF010 PN-260
63 API012 POLYAMINO AMIDE-SUNMIDE 135
64 PLF011 POLYBUTENE-10 (37026W) (INDOPOL H-100)
65 PLF012 POLYBUTENE-30 (37027X)h-300
66 POF007 POLYOEL 110 (37031B)
67 POF006 POLYVEST OC 800S (26046L)
68 POF13 PROCESS OIL F-262
69 PBI003 PV - 10 (K-VIS 10)
70 PBI001 PV 30/HV-300- kvs-30
71 PBI002 PV-200
72 WAF009 Ralufon 528- corrosion protection additive
73 HSF006 REOFOS 65
74 EMF005 RUETAPOX VE 3356
75 PLF003 SANTICIZER 278
76 POF012 Shell Catenex S725
77 POF009 SHELL EDELEX-945
78 APIOO3 SYNPOL 125
79 EMI003 TETA
80 SLI017 XYLENE
81 NVHF007 YD128DIGLYCIDYLEATHEROF BISPHENOL A
82 SLI001 IPA
83 FLI004 Monarch Resin

56

CHAPTER - IV

LITERATURE REVIEW

57
a. Material Mass Balance

Doing a Mass Balance is similar in principle to accounting. In
accounting, accountants do balances of what happens to a Companys
money. Chemical engineers do a mass balance to account for what
happens to each of the chemicals that is used in a chemical process.

Material quantities, as they pass through processing operations, can be
described by material balances. Such balances are statements on the
conservation of mass. If there is no accumulation, what goes into a
process must come out. This is true for batch process
1
. It is equally true
for continuous process
2
over any chosen time interval.

Material and energy balances are very important in an industry. Material
balances are fundamental to the control of processing, particularly in the
control of yields of the products.

Basic Principles

If the unit operation, whatever its nature is seen as a whole it may be
represented diagrammatically as a box, as shown in Figure. 4. 1. The
mass and energy going into the box must balance with the mass and
energy coming out.

1
A Batch process is a process where the feed streams are fed to the process to get it started.
The feed material is then processed through various process steps and the finished products
are created during one or more of the steps. The process is fed and products result only at
specific times. Examples are making a batch of a product, like soup or a specialty chemical.

2
A Continuous process is a process that has the feed streams and product streams
moving chemicals into and out of the process all the time. At every instant, the
process is fed and product is produced. Examples are an oil refinery, a power grid and
a steady salaried job.

58

Figure 4.1: Mass and Energy Balance

The law of conservation of mass leads to what is called a mass or a
material balance.

Mass In = Mass Out + Mass Stored

Raw Materials = Products + Wastes + Stored Materials.
m
R
= m
P
+ m
W
+ m
S

(where (sigma) denotes the sum of all terms).
m
R
= m
R1
+ m
R2
+ m
R3
= Total Raw Materials
m
P
= m
P1
+ m
P2
+ m
P3
= Total Products.
m
W
= m
W1
+ m
W2
+ m
W3
= Total Waste Products
59
m
S
= m
S1
+ m
S2
+ m
S3
= Total Stored Products.
If there are no chemical changes occurring in the plant, the law of
conservation of mass will apply also to each component, so that for
component A:

m
A
in entering materials = m
A
in the exit materials + m
A
stored in plant.

At Henkel plant that is producing Automotive Sealants by Blending
Technique
3
in Batch operations by the applications of mechanical
Blenders and Double Planetary Mixers. if the total quantity of Raw
Materials going into the processing is not equalled by the total of
the Sealant produced and the Sealants in the waste, then there is
something wrong. Sealants are either being burned (chemically
changed) or accumulating in the blenders or mixers or else it is
going unnoticed down the drain somewhere. In this case:

M
A
= (m
AP
+ m
AW
+ m
AU
)

where m
AU
is the unknown loss and needs to be identified. So the
material balance is now:

Raw Materials = Products + Waste Products + Stored Products +
Losses
where Losses are the unidentified materials.

3
Blending : A chemical processing technique in which various ingredients
are combined in such proportions as to give a product of some desired
composition. Complicated examples, in which an optimum or best achievable
composition must be sought, need quite elaborate calculation methods, such as
linear programming, but simple examples can be solved by straight forward
mass balances.
60
The first step is to look at the three basic categories: materials in,
materials out and materials stored. Then the materials in each category
have to be considered whether they are to be treated as a whole, a
gross mass balance, or whether various constituents should be treated
separately and if so what constituents

Material balances can be based on total mass, mass of dry solids, or
mass of particular components.

1 Method for Preparing Process Flow Chart

The identification and drawing up a unit operation/process is prerequisite
for material balance. The procedure for drawing up the process flow
diagrams is explained below.

Flow charts are schematic representation of the production process,
involving various input resources, conversion steps and output and
recycle streams. The process flow may be constructed stepwise i.e. by
identifying the inputs / output / wastes at each stage of the process, as
shown in the Figure 4.2

61

Figure 4.2 : Process Flow Chart

Inputs of the process could include raw materials, water, steam, energy
(electricity, etc).

Process Steps should be sequentially drawn from raw material to
finished product. Intermediates and any other byproduct should also be
represented. The operating process parameters such as temperature,
pressure, % concentration, etc. should be represented.

The flow rate of various streams should also be represented in
appropriate units like m
3
/h or kg/h. In case of batch process the total
cycle time should be included.

Wastes / by products could include solids, water, chemicals, energy etc.
For each process steps (unit operation) as well as for an entire plant,
energy and mass balance diagram should be drawn.

62
Output of the process is the final product produced in the plant.

Example: -Process flow diagram - raw material to finished product
(At Henkel, Gurgaon)

Figure 4.3 : Material Mass Balancing for PVC based Sealants

How to Carry out Material Balance?

Material balances are important, since they make it possible to identify
and quantify previously unknown losses. These balances are also useful
for monitoring the improvements made in an ongoing project, while
evaluating cost benefits. Raw materials, in any manufacturing activity are
not only major cost components but also major sources of environmental
Mass balance study - Actual Process Map
Bottom valve of
vessel
Closer (1)
Vacuum
checking (2)
Counting Of
Bags And
Numbering(3)
Liquid
Chargin
g (4)
Filler Charging (5)
DOP &
EXXOL D-
80 Charging
(6)
PVC
Charging
(7)
Viscosity
Adjustment(8)
Discharg
ing in
Drums(9
)
Mahale
Filer
Cleaning
(1)1)
Dismantles
Pump
Assembly
from
Blender(13)
Vessel
Cleaning
By Spray
Gun(16)
Material
Looses in
air &
bagsc

Material
Looses in
air &
bagsc
Bucket Filer
Cleaning 10)

Second Batch ( 1
to 8 )
Discharging
in Drums (9)
3rd Batch ( 1 to 8 )
Bucket Filer
Cleaning
(10)
Mahale
Filer
Cleaning(1
1)
Dischargin
g in Drums
(9)
Rinse Vessel
With DOP
And Drawn
In Drum
Through
Pump(12)
Collect
Material
And
Charge in
Left Over
Drum(15)
Collect
Material
In
Washing
Drum(17)
63
pollution. Inefficient use of raw materials in production processes are
reflected as wastes.

Guidelines for Material Mass Balance

For a complex production stream, it is better to first draft the
overall material and energy balance.
While splitting up the total system, choose, simple discrete sub-
systems. The process flow diagram could be useful here.
Choose the material balance envelope such that, the number of
streams entering and leaving, is the smallest possible.
Always choose recycle streams (material) within the envelope.
The measurement units may include, time factor or production
linkages.
Consider a full batch as the reference in case of batch
operations.
It is important to include start-up and cleaning operation
consumptions of material .
In case of shutdown losses, averaging over long periods may
be necessary.
Highlight losses at part load operations if prevalent.

The material balances along the above guidelines, are required to be
developed at the various levels.

1. Overall Material balance: This involves the input and output
streams for complete plant.

64
2. Section wise Material balances: In the sequence of process flow,
material balances are required to be made for each
section/department/cost centers. This would help to prioritize focus
areas for efficiency improvement.
3. Equipment-wise Material balances: Material balances, for key
equipment would help assess performance of equipment, which
would in turn help identify and quantify energy and material avoidable
losses.

Mass Balance Calculation Procedure:

The Mass balance is a calculation procedure that basically checks if
directly or indirectly measured mass flows are in agreement with the
mass conservation principles.

This balance is of the utmost importance and is an indispensable tool
for a clear understanding of the mass situation achieved in practice.

In order to use it correctly, the following procedure should be used:

Clearly identify the problem to be studied.

Define a boundary that encloses the entire system or sub-system
to be analysed. Entering and leaving mass flows must be
measured at the boundary.

The boundary must be chosen in such a way that: All relevant
flows must cross it, all non-relevant flows being within the
boundary.

65
Measurements at the boundary must be possible in an easy and
accurate manner.

Select an appropriate test period depending on the type of process
and product.
Carry out the measurements.

Calculate the mass flow.

Verify mass balance. If the balances are outside acceptable limits,
then repeat the measurements.

66
b. Value Stream Mapping

When there is a product and a customer, there is a value stream.
The challenge is seeing it ~ James Womack

Value Stream Mapping is a tool commonly used in lean manufacturing
technique / lean continuous improvement programmes to help
understand, analyse and improve the flow of materials and information
currently required to bring a product or service to a customer. It can be
used in any process that needs an improvement. Value Stream Mapping
borne out of lean ideology captures and presents the whole process
from end to end in a method that is easy to understand by those working
the process - it captures the current issues and presents a realistic
picture.

Value Stream Mapping is a helpful method that can be used in Lean
Environment to identify opportunities for improvement in lead time.

Although Value stream mapping is often associated with manufacturing,
it is also used in logistics, Supply Chain, Service related industries,
healthcare software development and product development.

VSM itself doesn't improve anything. It's an analysis and planning
tool. The principle aim of Value Stream Mapping is to improve
processes. When you draw a future-state map you've described how you
want things to be. The task then is getting the value stream to function
that way, which occurs step-by-step at the process level.

67
1. Value Stream Mapping (VSM) helps businesses think of flow
instead of discrete production processes and drive lean systems
implementation rather than isolated process improvements.

2. Visually represents a process all the actions required to deliver a
product or service to a customer (value-added / Non value added).

In a build-to-the-standard form Shigeo Shingo suggests that the value-
adding steps be drawn across the centre of the map and the non-value
adding steps be represented in vertical lines at right angles to the value
stream. Thus the activities become easily separated into the value
stream which is the focus of the one type of attention and the waste
steps another type. He calls the value stream the process and non-value
streams the operations. The thinking here is that the non-value adding
steps are often preparatory or tidying up to the value adding step and
are closely associated with the person or machine/workstation that
executes the value-adding step. Therefore each vertical line is the story
of a person or workstation while the horizontal line represents the story
of the product being created.

The goal is to create a map, with minimum delay, while observing the
target process in situation. Thus, value stream maps are usually drawn
by hand in pencil to keep the mapping process simple and allow the
simple correction.

Value Stream Mapping borne out of lean ideology captures and presents
the whole process from end to end in a method that is easy to
68
understand by those working the process - it captures the current issues
and presents a realistic picture.
Through a simple to understand graphical format, future state (a diagram
showing an improved and altered process) can be formulated and
defined. The method encourages a team approach and through the
capture of performance measurement data provides a mechanism to
constructively critique activity. Participants in the activity are encouraged
to suggest improvements and contribute towards and implement an
action plan.
As with any lean management toolset the principle aim of Value Stream
Mapping is to improve processes. This is achieved by highlighting areas
of waste within a process and therefore enable businesses to eliminate
these activities. Value Stream Mapping also has the benefit of
categorising process activity into three main areas - value add, Non
value add (but necessary) and waste.
While Value stream mapping isnt overtly complicated it does benefit
from some preplanning it is important that for example a house style is
developed using common graphics for use in the diagrams so that
everyone participating does so in a common language . You need to
ensure you consider including the following:

Material Flow
Inventory
Buffer stock
Suppliers, Customers
Material Transport
IT System
69
Information Flow

Implementation :

1. Identify the target product, product family, or service.

2. Draw a current state value stream map, which shows the current
steps, delays, and information flows required to deliver the target
product or service. This may be production flow ( raw materials to
consumer) or design flow (concept to launch). There are standard
symbol for representing Supply Chain entities.

3. Assess the current state value stream map in terms of creating
flow by eliminating waste.

4. Draw a future state value stream map.

5. Work toward the future state condition.

6. Create Action Plan and deploy

7. Measure benefits

70
c. Tools and Techniques of Data Analysis

ABC analysis : In the stores there are a wide variety of items, with a
stock record for each. Some have high value and others are very cheap.
The high-value items are normally controlled tightly, whereas the low-
value items are not treated as carefully and are issued in bulk in
approximate quantities.

ABC analysis is always used for better stand. According to this analysis,
all the inventory items are divided into three categories as A type, B type
and C type depending on their cost and quantity of consumption. The
differences between these types of items are summarized below :

CRITERIA A TYPE B TYPE C TYPE
Quantity 10 % 20 % 70 %
Annual Usage 75% 15% 10%
Control Very Strict Moderate Less
Ordering Weekly Bimonthly Yearly
Safety Stock Less High Highest

ABC Analysis is based on annual consumption data. It represents the
comparable data in volume verses values. After ABC analysis, Pareto
Graphs are derived for better understanding of ABC analysis.

These can be defined as:
A = 10 per cent of stock numbers, giving 65 per cent of turnover.
B = 20 per cent of stock numbers, giving 25 per cent of turnover.
C = 70 per cent of stock numbers, giving 10 per cent of turnover

71
Following chart is the best example of ABC analysis.

Raw Material
Category
Monthly
consumption (In MT)
Percentage
contribution
Fillers 330 44
PVC Resins 127.5 17
Rubbers 11.25 1.5
Stabilizers 7.5 1
Miscellaneous 30 4
Total 750 100

In order to get the best representation of materials movement, an ABC
analysis was done on the basis of monthly usage. Out of total monthly
material handling of around 667000 kg four raw materials i.e. Calcite,
Neolight SP, DOP, DINP and Exxsol D 80 constituted around 89 %. Of
total Raw material consumptions.

Pareto Analysis :

Pareto analysis is the technique which forms the basis of inventory
control thinking and is an important management principle which can be
applied to minimize effort and to obtain best results. It can also be
applied for time management, credit control and many other areas of
control. To gain best control, effort has to be directed to the most
important areas. The Pareto curve is often called the 80/20 rule, but the
72
values can be read off at any convenient point. For example, the graph
shows that 50 per cent of the product lines account for 97 per cent of the
sales (or that the other 50 per cent only provide 3 per cent of the sales
a worrying thought).

The shape of the Pareto curve arises from the range of volumes and
values combined in a statistical distribution. The shape of the curve does
not always give exactly an 80/20 relationship, but this does not affect the
principles of applying Pareto analysis to inventory management. Stores
carry a wide variety of items, with a stock record for each. Some have
high value and others are very cheap.

The high-value items are normally controlled tightly, whereas the low-
value items are not treated as carefully and are issued in bulk in
approximate quantities. Most effort should be put into managing items
which are most important for achieving inventory targets.

In inventory control the best results are gained by organizing effort
correctly. There is not sufficient management time to maintain detailed
control of all individual items.

If the immediate aim is to reduce stockholding costs then studying the
stock of low-value items is unlikely to be the best place to start unless
the sales volume is very large. If service is the aim, then attention to a
few fast-moving lines often provides the bulk of the improvement
required.

73

Figure : Pareto Graph ABC Analysis

74

CHAPTER V

DATA ANALYSIS

75
a. Data collected through Questionnaire : As mentioned earlier
structure, disguised and multiple questionnaires have been used to
identify awareness about products, machines and critical raw material
properties and to know the level of training. In each question workers
having a choice to select from 1 to 3.

In the following section, I have represented response of various
workers first in tabular form and then in graphical form for each
questions.

76
Sl
No.
Question
No. of
workers
responded
Score 1 Score 2 Score 3
No. of
units &
%
No. of
units &
%
No. of
units &
%
01

Do you check
the condition
of
Equipments
before
starting of
Batch?

29
25 &
86 %
04 &
14 %
NIL

Data tabulated in previous page can be represented in graphical from as
Given below

86%
14%

77
Sl
No.
Question
No. of
workers
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
02

Do you check
& confirm the
standard
packing size
weight of raw
materials
bags before
charging.

29 Nil
01 &
3 %
28 &
97 %

Data tabulated in previous page can be represented in graphical from as
Given below

97%
3%

78
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
03
Do you verify
the Liquid &
Powder raw
materials
cans / bags
emptied
completely
29
20 &
69%
05 &
17%
04 &
14 %

69%
17%
14%

79
Sl
No.
Question
No. of
Workers
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
04

Do you Check
the exothermic
property of
Super 40 ( >
120
0
C) before
addition into
each batches?

29
29 &
100 %
Nil Nil

100%

80
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of units
& %
05
. Do all In-
process
machines &
testing
equipments
like Weighing
Machines,
Vacuum
Gauge ,
Ovens
Thermometers
, Glass
Thermometers
are get
calibrated
periodically.?
29
4 &
14%
06 &
21%
19 &
65%

14%
21%
65%

81
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
06
Process
Temperature
of the running
batch is kept
under control
during batch
processing?

29
28 &
97 %
1 & 3 % Nil

97%
3%

82
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
07

During
Filtration, On
filter Choking,
do you
bypass the
filtration
process.?

29
29 &
100%
Nil Nil

0 %
100 %

83
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
08
.
Preventive
Maintenance
schedule is
followed?

29
23 &
79 %
06
& 21%
Nil

21 %
79 %

84
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
09

Are all the
Incoming
Raw Material
tested as per
Standard
Quality Test
methods at
the time of
receiving?

29
6 &
21 %
18 &
62 %
5 &
17 %

21%
62%
17%

85
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
10

What
Happened
when such a
Raw
materials is
found of sub
quality
standard.?

29
27 &
93 %
2 & 7 % Nil

93%
7%
0%

86
Sl
No.
Question
No. of
client units
responded
No. of
units &
%
No. of
units &
%
No. of
units &
%
11

What are the
In-Job
Training
schedule?

29
03 &
10%
01 &
30%
25 &
87%

10%
3%
87%

87
By the analysis of above data found from the questionnaires answers, I
did not see any problem area except in three areas.

1. During Raw Material usage, Weight of standard packings should be
verified for all the raw materials and during all the batch productions.
Whenever any standard pack size is to be used, its standard weight
should be verified by weighing of bags. It may be possible some of
bags has lesser weights than standard packing size.

2. About the Calibration of Equipments, workers are not aware. It
should be mandatory to know about the calibration of equipments so
that workers should be more cautious after they are the end user.

3. For incoming Raw materials, Quality testing is not done for all the
raw materials. Because most of the raw materials are imported but it
is not necessary that being an imported item that Item would be of
100 % quality standard. It may also be inferior quality and their
instrument may also be non calibrated.

88
Data obtained from personal interview and Observations :

Actual Man-hours working 8 Hours which is Standard man-
hours permitted for their job duties.

Working on Over Time duty and reasons : No such big issue
found. Certain times , workers has to stay on over time due to
absent of their reliever.

Work package is as per govt. regulations.

Job retentions ratio is found 85 %. Which means, employees are
satisfied with their job profile.

No. of Machine Brake down, severity of Brake down is very less,
average 2 cases in a year. Since Henkel is OEM to all the Vehicle
manufacturer and due to any Brake down at Henkel, customer
may suffer. Henkel is more strict in controlling of Brake down.

Specified machines which goes under Brake down. Triple Roll
mill and Gear Box of DPMs.
Equipments Calibration cycle and past History. All the
compulsory equipments are being calibrated time to time. There is
no fault found in system.

Available technicians / engineers in last five years. One
maintenance / technician is deputed in every shift to take care of
each shift.
89

Preventive Maintenance schedule.- is being followed strictly.

In Job training and Skilled Matrix. In job training is being
imparted periodically on Quarterly basis. It is required on monthly
basis.

Awareness about Finished Goods and Raw Materials Properties
Workers have relevant knowledge on FG and RMs. It needs more
emphasis on training on Raw Materials Handlings. It will help in
reducing the wastage. Awareness about handling of Raw Materials
is found poor among the workers.

Raw Materials inventories levels were decided so much times
before. These should be redecided in present scenario.

5S activities are very poor in store. Very poor House Keeping on
shop Floor as well as in Store. More training is needed.

90
1. Data analysis :

Raw Material Consumptions and Inventory Carrying Days

E
D
O
C

M

R

R
A
W

M
A
T
E
R
I
A
L

R

M

C
o
n
s
.
i
n

A
u
g
.
1
0

R

M

C
o
n
s
.
i
n

S
e
p
t
.
1
0

R

M

C
o
n
s
.
i
n

O
c
t
.
1
0

A
v
g
.

R

M

c
o
n
s
u
m
.

I
n
v
.

c
a
r
r
y
i
n
g

D
a
y
s

S
t
o
c
k

o
n

0
1
.
1
1
.
1
0

OTF167 POLYCIZER W-23-S 0 150 0 50 1997 3840
OTF168 TAKENATE B 7105 0 115 0 38 1595 2352
FLF053 VISCOEXCEL-30 0 336 0 112 1481 6375
PRF029 DEGALAN UC 506 0 363 0 121 1147 5329
OTF174 VINIFOR ST 78 0 8 0 3 922 92
TAI005 HDK N 20 8 0 0 3 770 79
FLF052 R 972(SiO2) 0 9 0 3 588 66
PLF002 EDENOL 190 122 122 183 142 256 1402
APF032 NOURYBOND 290 15 0 88 34 236 311
APF030 Silquest A-1100 1 1 1 1 173 4
DYF011 ELFTEX 12 2 2 2 2 137 8
PRF006 VINNOLIT C12/62 0 0 320 107 97 398
PLI002 DBP 130 0 0 43 89 149
OTF068 DYHARD 100S 116 96 0 71 212 576
PRF038 PSH 10 RESIN 3150 2730 1140 2340 86 7744
PRF037 KANEKA PS 300 540 1680 2420 1547 60 3575
FLF005 SOCAL -322 63 63 63 63 59 143
APF002 DESMODUR BL-175 SN 99 165 122 129 55 274
EMI006 Epoxy resin Epikote 828 355 0 0 118 52 235
PRF005 VESTOLIT-E7031 2719 2838 2169 2575 59 5814
APIOO3 SYNPOL 125 1253 1560 1669 1494 42 2395
MEI001 CALCIUM OXIDE 36357 37519 36165 36680 8 11449
FLI012 Microncarb 2 Microns 810 853 736 800 35 1077
PRF025 PCH-72- Kaneka Resin 12008 10464 4380 8951 29 9980
DYI002 TIO2 - Anatase - Kilburn 1443 1267 1672 1460 22 1221
SLI009 EXXSOL D-80 27957 28346 28683 28328 6 6340
PRF008 VESTOLIT-P1353 K 1560 5250 2175 2995 15 1731
PRI001 PVC RESIN-120 12560 17825 23211 17865 13 9106
APF006 Ibero Tech 6023 572 519 192 427 13 216
91
PRF024 PBM-6- paste resin 7432 8371 4965 6923 12 3092
FLF022 NEOLIGHT SP 39771 50628 36933 42444 10 17116
HSI004 ZNO 866 1047 998 971 14 537
TAF003 CABOSIL M5 964 1306 929 1066 9 357
PLI001 DOP 78287 74590 79169 77349 2 5910
FLI024 CALCITE- HARYANA 80353 84704 87113 84056 2 8004
PLI005 DINP 62406 55927 61184 59839 2 3625
PLI003 ESO-IVAMOL SN 953 855 539 782 1 43

The above data are collected only for PVC Family Products. The
Inventory carrying days in certain materials shows very high i.e 1997
days , while various items have at least 1 or 2 days inventories.

On the basis of internal data collection and personal interviews, various
reasons found behind these un unique inventory carrying days. There
are various reasons given :

1. In Imported materials procurement time ( Lead time ) are different
from countries to countries. Arrivals are not certain.

2. Minimum Pack size : Henkel has to buy minimum Size packing .
For Example, Silquest A 1100 ( Item Code APF030) standard
minimum packing size is 18 Kgs pail but monthly consumption is
only 1 Kgs per month. Hence purchase of 18 Kgs pail become
compulsory.

3. Minimum Order lot Size : In certain imported Items, importers
accepts only minimum lot size order. For Example - DEGALAN
UC 506, (Item Code PRF029), minimum order lot size is 1 pallet i.e
7500 Kgs per pallet. While consumption is 121 Kg p.m.

92
4. Non regular customers orders : it is also a mazor concern for
increasing inventory carrying days.

5. Certain times it is also observed that some materials were ordered
extra to make a complete FCL (Full container Load).

6. In case of indigenous Raw materials, Henkel is following the best
Inventory control practices like JIT. Mazor Bulk and fast consuming
items has only 1 to 8 days inventories . For example DOP, DINP
and Calcite.

7. Still in some of Indian materials, Inventories carrying days are
higher like in case of Miconcarb 2 Micron or Tio2 or Exxsol D 80.
In such time of Items, Henkel should Follow strictly on JIT and
inventory carrying days can be reduced further.

8. Majority of Higher Inventory carrying days is in Imported Items.
Hence Henkel should focus on more and more on Purchase of
Imported items by the application of advanced Inventory controlling
tools like SAP (Although ERP is there) , JIT, KANBAN etc.
Ordering for FCL can be avoided etc. Lead times further need to
reduction.

93
After data collection in chapter 3 (b), next was mapping the value
addition process to get the understanding of material flow for a few
products. The value stream mapping shows that most of the time
material is lying in stores in the lead time of conversion to finished
goods. This is happening mainly due to significant amount of imported
materials used in the process.

Value addition process has been divided into two stages for better
analysis of wastage.

1. Gate entry to material charging in the machine
2. Material charging in the machine to finished output

Establishing material wastage from material charging to finished
output

Material mass balance

First of all we tried to determine the material loss taking place in the
machine. For that we chose a product TLN 5955 on HT#2 machine.

94

Analysis of possible mode of failure:

Failure in bottom valve leakage
Wrong Qty. Charging
Bags are not emptied out completely
Super 40 Exotherm not checked
Synpol 125 / ESO wrong qty. addition
DOP/DINP charging through heat exchangers may get
moisturized & affect bonding.
Improper Chiller temperature
Loose barrel with contamination and make-up with fresh batch
leading to customer complaint
Bottom valve of
vessel
closer
Vacuum
checking
DOP Charging
via Heat
Exchanger

Exxol D80
charging
Sympol 125 /
ESO
Weighing
Sympol+ES
O
charging
Mixing for
5 minutes
Charging of
powder
RM
Mixin
g
DOP Charging
via
Heat Exchanger
DOP Charging via
Heat Exchanger
Mixin
g
Coolin
g
Chec
k
Temp
.
PVC
Charging
Maturation
DOP Charging
via
Heat
Exchanger

Drum
Arrangement
Filtration/Discharging
Partic
les
Chec
king
Spillage
Spillage
Air Lose,
Sticking loss
Sampling
loss

Air Lose,
Sticking loss
Spillage,
Line
Retentio
n
Loss
Sticking
losses
Check
Homog. &
Temp.

Mixin
g
Check
Homog. &
Temp.

Sampling
loss

Chec
k
Visco
sity
.
Chec
k
Visco
sity
.
95
RTD is not showing exact Temperature
Non calibrated Thermometer & Load Cells and Weighing Balances
Temperature of the batch in not checked before further processing
Filter bypass results particle in batch
PM schedule is not followed.
Excess usage of Plasticizers in Machine / Drums / Filters Cleaning
than required
No Recording and No Continuous controlling on usage of
Plasticizers for cleaning purposes.
No recording of Material Drawn for Machine washings and filter
cleanings.
No recording of Short receiving incomings.
No recording for Excess Plasticizers consumptions for viscosity
adjustments.

Physical observation:

Oil Observations :
Cabosil M-5 Powder
Oil Absorption: (spec 350-450 ml/100 gm)
Quality Result : 380 ml/100 gm

Neolite SP Powder
Oil Absorption: (spec 26-32 ml/ 100 gm)
Quality Result : 30.37 ml/100 gm
96
Calcite Powder
Oil Absorption: (Spec. 26-30 ml/100 gm)
Quality Result : 28.06 ml/100 gm

Moisture content: Calcite Powder
Specs : Spec 0.5% max
Quality Result : 0.16 %

Table 1:
B.No. Total
Input
Total
Out put
Losses in
RM bags
& air lose
during
charging
Wastage
in
sampling
Sticking
losses in
vessel
Material
remained in
filter
Total
Difference
Input-output
DOP used
for cleaning
The vessel
Output after
cleaning
Unaccounted
losses*
In Kg In Kg In Kg In Kg In Kg In Kg In Kg In Kg In kg In kg
4141 3954 3534 4 0.05 Not
checked
added into
next batch
22 420 Nil Nil 25
4142 3964 3961 4 0.05 10 79 3 110 365.3 23
4141
+
4142
7918 7495
(94.65%)
8
(0.10%)
0.1 10 101 423 110 365.30
48

The table implies that material wastage from material charging to
finished output is around 0.56% of the input mass.

A Separate Mass balance study was also conducted specially for
Plasticizers :

Please see the attached diagram for Process Flow and Material Mass Balance
Mapping for Plasticizers.

97

98
Possible Failure Modes

Excess usage of Plasticizers in Machine / Drums / Filters Cleaning
than required
No Recording and No Continuous controlling on usage of
Plasticizers for cleaning purposes.
Leakages and spillage in Plasticizers valves and Tapes.
Weighing Error in Balances.
No recording of Material Drawn for Machine washings and filter
cleanings.
Malfunctioning in Load Cell of DOP / DINP Tanks.
No recording of Short receiving.
No recording for Excess Plasticizers consumptions for viscosity
adjustments.
No recording of Plasticizers used for churning of Finished goods.
Inferior quality of Plasticizers.

Below is the project report conducted on Plasticizers :

Before

Monthly
Consumption
Material used
as per MRS
Material used
without MRS
Wastage
Month Percentage

Aug.10 168650 166342.7 2307.3 1.37

Sept 10 158863 157056.9 1806.1 1.14

Average 163756.5 161699.8 2056.7 1.25

99
After

Monthly
Consumption
Material used
as per MRS
Material used
without MRS
Wastage
Month Percentage

Oct. 10 169036 167924 1112 0.66

To achieve the above results : following actions were taken :

1. Issuing of MRS for less than 0.5 % of Short receipt of Liquid
Materials.

2. Removal of two Loose points from Storage tank behind DPM &
Sigma.

3. Controlling and Issuing of MRS for Machine Cleaning at 64 IDC &
Others.

4. Corrections in Conversion Factors with respect to Sp. Gravity In
ERP

5. BOM Correction for Extra Plasticizers being used in addition to
BOM

6. Controlling & Rationing of Plasticizers being used for Floor
Cleaning & MRS Issuing by recording in Register.

100
7. Recording of Qty of liquids being used in Machines (Sigma/ DPM/
TRM/ Churner/Kneader) Cleaning in both plants and Blender
Washing at 74 IDC.

8. Routine Calibration of Load cell and Weighing Balances being
used for Plasticizers weighing. Weekly checking & Error correction
of Weighing Balances

9. Recording of Plasticizers used in Filter Cleaning and Churning of
F. Goods

10. Following Action Taken sheet was applied for this project.

Grey Area required for Action Starting
Date
Closing
Date
Responsibility %
Completion
Issuing of MRS for less than 0.5 % of
Short receipt of Liquid Materials

Removal of two Loose points from
Storage tank behind DPM & Sigma

Controlling and Issuing of MRS for
Machine Cleaning at 64 IDC & Others

Corrections in Conversion Factors with
respect to Sp. Gravity In ERP

BOM Correction for Extra Plasticizers
being used in addition to BOM

Controlling & Rationing of Plasticizers
being used for Floor Cleaning & MRS
Issuing by recording in Register.

Recording of Qty of liquids being used
in Machines (Sigma/ DPM/ TRM/
Churner/Kneader) Cleaning in both
plants and Blender Washing at 74 IDC.

Routine Calibration of Load cell and
Weighing Balances being used for
Plasticizers weighing. Weekly checking
& Error correction of W. Balances

Recording of Plasticizers used in Filter
Cleaning and Churning of F. Goods

101
Establishing material wastage from material gate entry to material
charging

ABC analysis of raw material inventory:

In order to get the best representation of materials movement, an ABC
analysis was done on the basis of monthly usage. Out of total monthly
material handling of around 667,000 kg four raw materials i.e. Calcite,
Neolite SP, DOP and DINP constituted around 89 %.

Raw Material
Category
Monthly
consumption (In MT)
Percentage
contribution
Fillers 330 44
PVC Resins 127.5 17
Rubbers 11.25 1.5
Stabilizers 7.5 1
Miscellaneous 30 4
Total 750 100

Table 1 : ABC Analysis

A mass balancing study was conducted for around 7 days to assess the
wastage of material and to determine the extent of reconciliation.

Procedure:
1. Take physical inventory of all the raw material at the beginning
102
2. Check the stock position in the ERP
3. Record consumption machine wise
4. Take physical inventory again
5. The value of Beginning inventory Consumption End inventory
gives an idea about losses.

Material HT#1 HT#2 Blender sigma DPM1 DPM2 ID76 64 IDC Total
Calcite 2043 1840 3850 955 749.55 1103 1525.4 57 12122.95
Neolite 2547 1760 2985 0 947.42 1711.89 68 31 10050.31
DOP 2390 2580 2935 0 54.16 0 67.05 10.64 8036.85
DINP 625 0 130 612.44 726 1221.9 956.46 4271.8

Table 2: Consumption of raw material from 18-09-10 to 25-09-10

Material
Current
status of
raw material
physically
as on 18-
09-10
New
receives
Consumption
Status of
raw material
physically
as on 26-
09-10
Unaccountable
material
%age loss
Calcite 19580 15000 12122 22405 123 0.27
Neolite 37560 18000 10050 45250 260 0.692225772
DOP 14543 16000 8500 20686 1357 9.330949598
DINP 8231 16000 4271.8 19759 200.2 2.432268254

Table 3: Tabulation of unaccounted materials

Material
Current status
of raw material
physically as
on 18-09-10
Current status of raw
material in ERP as 0n
18-09-10
Status of raw material
physically as on 26-09-
10
Status of raw
material in ERP
as on 26-09-10
Calcite 19580 19619.56 22405 17992
Neolite SP 37560 40608 45250 47439
DOP 14543 15786 20686 19558
DINP 8231 9125 19759 17972

Table 4: ERP vs. Physical inventory
103
Outcomes of the exercise:

1. Difference has been noted between physical inventory and the
stock position in the ERP system.

2. Stock position on subsequent day would exceed previous day
position without any discernable statement in ERP

3. Different stock position was observed in different navigation
screens of ERP system.

4. There is no provision to record the returned material receipt (MRN)
in ERP system which makes reconciliation little difficult.

5. Difficulties were faced in taking physical stock position due to
material being placed in so many places.

6. More than one sacks/bags were found opened at all the machine
locations making inventory measurement job little difficult. It is one
of reasons of material wastage as well.

7. Measurement of liquid items was little difficult due to the absence
of flow measurement device in the line.

104

CHAPTER VI

CONCLUSION & RECOMMENDATION

105
Following suggestions for improvement in existing process may be given

Better application of existing inventory management procedures should
be coupled with education programs for purchasing personnel on the
problems and costs of disposing of excess materials. Additionally, the
set expiration dates on materials should be evaluated, especially for
stable compounds, to see if they are too shot. Another approach to
inventory control is to purchase the material in the proper amount and
the proper size container. If large quantities of a material are used, then
purchasing it in bulk will produce less waste, both I product loss and
empty packaging, than if it were purchased in drums or bags. On the
other hand, small containers may be better than bulk purchases if the
material has a short shelf life or is not used in large amounts. If surplus
inventories do accumulate, steps should first be taken to use the excess
material within the plant.

The ultimate in inventory control procedures is just-in-time (JIT)
manufacturing, since this system eliminates the existence of any
inventory by directly moving raw materials from the receiving dock to the
manufacturing area for immediate use.

The summary :

1. There are large import inventories lying at Henkel from so
many days. Either they are slow moving or they are dead.
Henkel should focus on JIT by reducing the Lead time and
by reducing the minimum inventory level and by reducing
the order size.
106

2. Although Henkel India is exploring and developing the
local sources for Imported raw materials but pace of
developing is slow. For Example Phthalic Anhydried is
available in India.

3. Process improvement for waste reduction during value
addition process.

4. Better visuals required for identification of different raw
materials and finished goods.

5. For better material identification and reconciliation, all
cartons/sacks to be given a unique sequence number and
consumption to be done in that sequence only. A few
steps have already been discussed with Manger Stores in
this regards how to go about this.

6. Strengthening of ERP system is required for better
reconciliation of raw materials.

7. Devise methods to avoid double or triple handling of raw
materials.

8. Relocation of a few machines and testing facilities to 64
IDC from 74 IDC so that made up space is utilized for
keeping raw material so as to avoid unnecessary material
movement.

107
9. Procurement of bins to keep the torn bags into that.

10. Do not throw the bags from large distances.

11. Regularly standard weight of packings should be
verified by weighing of lots or each and every bag.

12. Inculcating discipline among workers to consume in
hand material first before re issue of fresh material.
This will help in reducing material wastage as well as
better material tracking.

13. Installation of flow meters in the liquid lines.

14. Preventive Maintenance schedule is to be strictly follow

15. More control on Plasticizers for cleaning purpose is
needed.

16. Periodically Calibration of Load cells, Vacuum
Gauge ,is compulsory. Workers should also be aware.

17. Quality management system is in place. Strict
adherence is required.

18. Material wastage is happening mainly on account of
scrap generation. Reducing scrap generation needs
serious consideration. Special projects are required for
the same.
108
19. All the incoming Raw Materials viz. Indian and
Imported should be tested before the approval of
quality, no material should be use.

20. In job training is being imparted periodically on
Quarterly basis. It is required on monthly basis.

21. 5S activities are very poor in store. Very poor House
Keeping on shop Floor as well as in Store. More
training is needed.

Inference:

1. Space constraint
2. Multiple storage location
3. Double or triple material movements.
4. Employee training for raw material handling is required
5. Use of raw material for cleaning of reactors.

109

110

CHAPTER VII
COMPANY PROFILE

111
Henkel Teroson India Limited (HTIL) is a 200 Crore company with 51:49
Joint Venture company of Henkel KgaA, Germany and Anand Group.
Henkel KgaA is a 24 Billion US Dollar company with vide range of
product portfolio including Automotive Sealants , Adhesives and
Coatings, Car Care products , Detergents, Cosmetics and other
Industrial Chemicals.

Anand Group is the leading Auto Component Manufacturing Group in
India comprising of Companies-M/s Gabriel India Limited, Mahale Filters
India Limited, (previously Purolator India Ltd) , Perfect Circle Victor
Limited , Spicer India Limited, Behr India Limited
The Major customers of HTIL are : Maruti Suzuki India Ltd, Hyundai
Motors, Honda Motors, Tata Motors, Toyota Motors, Volkswagen,
Mahindra & Mahindra, General Motors, Ford India Ltd, LML Ltd etc. It
has approx. 70 % Market Share in Indian Automotive Sealants and
Adhesives business.

Henkel Teroson India Ltd. has 5 manufacturing Plants in India. There are
two plants in Gurgaon to cater North Indian Automobile companies
Maruti Suzuki India Ltd in Gurgaon and Honda Seil Motors in Noida.
HTILs Chennai plant feeds Hyundai Motors, Toyota Motors and Ford
Motors while HTILs Pune unit caters Tata Motors, Volkswagen Motors
and General Motors. Among all the 5 Plants, Henkel, Parwanoo plant is
smallest plant and produces only one product Direct Glazing Sealant
(DGX). It supplies DGX sealant to all the Indian Automobile companies
as well as it imports DGX sealants to China origin companies.

112
All the Indian Branches of HTIL are TS 16949 certified companies by
RW TUV Germany, and also has Technical License from Sunrise MSI
Corporation , Japan, for Automotive Sealants and Adhesives.

Gurgaon Plant -1 ( 74 IDC) is the Head office and all the top
managements resides in Gurgaon. This central Plant provide all type of
necessary help to all the locations as and when required like Technical
assistance , Customer Support, Product Support and logistic & Raw
material support.

Certain times, in any emergency due to any reason, Gurgaon Units
provide all type of support to all the locations.

There are 65 Staff members employed in Gurgaons central plants. All
the staff members are well educated and trained in their responsibilities
and manpower retention is 85 %.

113

BIBLIOGRAPHY

114
Reference / Bibliography

1. Operations management by Stevenson
2. Supply chain management by Chopra, Mendel and Kalra
3. The management and control of quality by James R Evans,
William M. Lindsay.
4. Lean Evolution : Lessons from the workplace by Nick Rich, Ann
Esain, Nicola Batman.
5. A Revolution in Manufacturing : The SMED System, Shongo,
Shigeo, Productivity Press, 1985,p5
6. Energy audit reports of National Productivity Council
7. Energy Management Handbook, John Wiley and Sons - Wayne C.
Turner
8. Operational Research - V K Kapoor
9. Management of production system - Manohar L Gulati
10. Research Methodology - CR Kothari

Projectreportoninventorymanagement Prakirngupta 130906114655

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Projectreportoninventorymanagement Prakirngupta 130906114655

Uploaded by

Copyright:

Available Formats

A Project Report on

Reconciliation and Wastage reduction of raw

You might also like