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3/22/2009 Group-5

Project Charter
Project Title: Establishing a processing plant for canned mango pulp
Prepared by: team 5 Date: 17 Mar. 09 Version:

Background to the Project The project is for establishing a unit to manufacture canned mango pulp. The demand for the product is increasing due to development of mango beverage industry. Varieties which have low fibre and high quantity of pulp are best suited for making pulp. Totapuri and Neelam varieties in the Southern Region, Chousa and Langra in the Northern and Central Region can be considered as suitable. Aims & Objectives: The aim of the project is to fulfil the demand of consumers which are in the processing of mango pulp into finished items like mango juice and other beverages. Potential customers will be processing companies and exporting companies. Criteria of Success: The export potential of mango pulp is very high. Domestic demand for mango pulp remains for through out the year. About 6000-7000 tonnes are the mango pulp demand in the processing industry which gives a wider scope for catering B2B segment. The present project is to be established in A.P. which is the home for first flush of mango in the country, and has significant proportion in total mango availability. Hence procurement will not be a problem. Consequences of Failure: A failure in this project can lead to huge financial losses. A proactive approach standing against the any type of situation is required. Since it’s a very lucrative market, in this market could attract others to follow while taking advantage of our failure and may possibly annihilate us for longer period. Assumptions: Few assumptions have been kept in mind. • Since it’s a capital intensive project so not easy to emulate. • Special knowledge of mango procurement and strategic planning is required. • Hyderabad is one of the potential area for mango plantation so closer vicinity gives advantage. • Plant is based in MANAGE itself, so extension facilities are available as per need.

Many horticulture farmers and traders do come for training in MANAGE, so closer contacts can be made easily. In near vicinity major agricultural institutes like ANGRAU, NIRD and NAARM are present which gives strategic advantage to us. Since promoters come from agri-background and have management acumen is same area, so it is advantageous for understanding the rigmarole of the project.

Constraints: Some of the factors are • Huge capital requirement • Not established market but a growing one. • Lack of market research. • Agri commodities are always dicey investment. Steps taken • Fund raising from bank. Application has been filed. • Constantly watching the market, and taking initiatives to grow the market. • In future would like to conduct market research on our own. Risk Analysis:

Primitive crop management facilities, erratic yields, diverse practices for assessing fruit maturity and high incidence of pests are the problems for the processors. Since it’s a production related problem so we would join with farmers who are specialized in mango farming. And for further support extension services could be an alternative. This risk is very pertinent but can be dealt with preplanning and monitoring. There is also no sufficient process control and it leads to variations in product quality. For this we have detailed out a strict quality manual which will guide in taking decisions wisely. The risk is not that much high. Alternate bearing of mango is causing supply and price fluctuations. The profits in the 'on' year have to be split in order to take care of the 'off' year. For this we have set down procurement plan in advance. The risk is too high but can be managed with proper planning. Water and power are essential inputs in canning industry. Each canning unit has to set up its own generator and water lifting system adding to the cost of manufacturing. For this we have plans to tackle problem. In a NABARD study in 2001, it was found that profit margins were 16% in canning units and the ratio of net profit to sales is low. It highlights the fact that the activities offer only nominal profits and revenues will be under strain if demand for the mango products is not sustained. It’s an uncontrollable factor, but we have laid out plans to tackle the problem. Risk is high. A limited domestic market is a serious constraint facing the processed mango industry. Estimates of supply-demand position for major processed foods both in the country and overseas are also not available and the industry is in information vacuum. Since market is growing, so it does not seem to pose a potential threat. And in future demand seems to grow on the basis of opinions of experienced players of the market.

• • •

The other problem pertains to extension services, cold storages and quality control laboratories. We have strategic place to utilize the potential of mango production hence this threat is not much worrying. Product recall is very high while exporting due to varying quality specifications in importing countries; this has been a very potential threat. For tackling this we have laid out quality manual and a well qualified quality assurance team. There are risks also due to govt. regulations, which will be dealt as per the situation. Risk Probability Impact Primitive crop low management facilities, erratic yields, diverse practices for assessing fruit maturity and high incidence of pests are no sufficient low process control Alternate bearing mango High of of Effect of impact Risk Mitigation

Loss of crops, Economic Farmers who are losses specialized in mango farming. And for further support of extension services

variations quality

in

product strict quality manual, quality assurance team

supply and fluctuations

Water power

and low

price procurement plan, profits in the 'on' year have to be split in order to take care of the 'off' year Processing , cost of own generator and manufacturing high water lifting system Overstocking/understocking Proper planning

Estimates of medium supply-demand not available Product recall High due to varying quality specifications govt. low regulations

Loss of value, economic quality manual and a losses well qualified quality assurance team Loss of value, economic As per situation losses

Contingency plans:

We have laid out our plans and have got it confirmed from our sources. For any procurement problem we have sourcing model which identifies strategic supplier from

the market. We would source mangoes from Hyderabad, Vijaywada and Chittoor areas. And in event of unprecedented happenings from Maharashtra and U.P. A mango pulping plant can be also utilized for papaya, guava and tomato processing also. In case of short supply/crop failure on mango these crops are good alternative. Besides that there are many by products of mango like mango powder, which is easily manufactured can bring additional income. Also mango stone and peel can be used in preparing organic manures, which can be reutilise in mango orchard hence it would be a feasible idea to give it to mango growers and would help in maintaining good relationship.

Project Documentation: Identify the documents relating to your project and where they are kept. Typical documents would include: Project Charter Project Plan – Gantt chart Method Statement- is ready Risk Analysis- is ready Contingency Plans- is ready Budget- is ready Meeting Minutes- is ready Quality Plan- is ready Specification- is ready Project Contact Directory - is ready

Key Dates in the Project: Project formulation- 17th Mar 2009 Expected date of completion- 31st sep 2009 Project Control: Plant monitoring –thrice a week Meeting frequencies- weekly appraisal of activities There will be no. of assistants to coordinate the work in each deptt. and they will be reporting to the respective department heads. Regular updates will be done, with the help of documentation. Each document will have computer generated copies as well. Structure of the organization is as • Project manager • Procurement manager • Procurement officer • Plant manager • Plant engineer • Accounts head • Accounts asst. • Quality assurance mgr.

Quality assurance officer

Key Project Personnel Various activities and respective overseers are: Project manager- Parag Rastogi (1) Procurement manager- Arindam Mukherjee, Anil Kumar (4) Plant manager- Kumar Anshumant, Devashish Kumar (6) Accounts head- Mayank Rastogi (3) Quality assurance- Anjali Rawat, Puja Chaurasia (3) • Nos. in brackets indicate assistants’ to the respective people.

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