Professional Documents
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Mba Operations Project in Process Management
Mba Operations Project in Process Management
BY
1
Acknowledgment
It is not just the formality, but it is my duty to say thanks to all those person,
who guided and co-operated with us directly or indirectly, during training and
preparation of this project report.
First we express our sincere thanks to my project guide Mr. Madhukar devkar for
their timely and valuable suggestion and co-operation during the completion of the
dissertation work
Special thanks to managing director Mr. kakade S.D For their helpful co-operation
entire training period.
Very special thankful to Mr. Bhanudas murkute chairman of ASSK for their co-
operation and giving Permission for training and site visit
Lastly, I would like to thanks my parents as their blessing are always works for me.
My friends also need thanks as there as there continuous encourage me net leads
me complete the seminar work.
2
DECLARATION
is a record of independent work carried out by me under the guidance and supervision of Sushma
Patil, Shri. Madhukar devkar towards the partial fulfilment of requirements for the M.M.S. degree
course UNIVERSITY OF MUMBAI
I further declare that this Project Report is the result of my own efforts and that it has not
been submitted to any other university or institute for the award of a degree or diploma or any other
similar title of recognition.
Sushant Gage
3
CERTIFICATE
University of Mumbai.
4
EXECUTIVE SUMMARY
The project is about the study of Manufacturing Process Management of Ethanol at Ashok Sahakari
Sakhar Karkhana (ASSK). The project incorporates basics of Process at ASSK.
In ASSK production control process starts with marketing department, where it get demands on the
basis of current market trends and it acts as a basis for developing production plan. It involves
coordination with various departments of ASSK, like it starts with marketing department and ends
with logistics. ASSKs main focus is on customer building by fulfilling their demands on time with
great quality.
Marketing department: Marketing department forecasts the demand and gives it to other
departments which are directly involved in production activities.
Production department: Production planning is carried out here based on the availability of
the raw materials, finished goods in stock.
Minimum Demand In this, if the demand in the market is low then the ASSK must produce
minimum demand to sustain in the market.
Import finished products - ASSK thinks of its customer very much. If the plant is under shut
down because of certain reason, the company delivers the finished products by importing from
other companies to maintain good relationship with their customers.
Focused customers ASSK gives discount to customers who are taking the Products in bulk
quantity and to its regular customers.
Overall project learning is about understanding all above aspects which are required for the
smooth functioning of the production planning and control.
5
INDEX
Content Page No.
A.1. INDUSTRIAL PROFILE
2. COMPANY PROFILE
2.1 Background
2.2 Nature of Business Carried
2.3 Vision, Mission, Policy
2.4 Product and Services
2.5 Area of Operation
2.6 Ownership Pattern
2.7 Competitors
2.8 Achievement & Awards
2.9 Work Flow Model
3 MCKENSYS 7S
3.1 Strategy
3.2 Structure
3.3 Skills
3.4 Style
3.5 System
3.6 Staf
3.7 Shared Value
4 SWOT ANALYSIS
5 ANALYSIS OF FINANCIAL INFORMATION
6 LEARNING EXPERIENCE
The Indian sugar industry is the second largest agro industry located in the rural
India. The Indian sugar industry has a turnover of Rs.500 billion per annum and
it contributes almost Rs.22.5 billion to the central and state as tax, and excise
duty every year. It is the second largest agro processing industry in the country
ofers cotton textiles. About 50 million sugar cane farmers and a large number
of agricultural labourers are involved in sugar cane cultivation and ancillary
activities, constituting 7.5% of the rural population. Besides the industry
provides employment to about 2 million skilled/semiskilled workers and others
mostly from the rural areas. The industry not only generates power for its own
requirement but surplus power for export to the grid based on by - product-
bagasse. It also produces ethyl alcohol, which is used for industrial and potable
uses, and can also be used to manufacture Ethanol, an ecology friendly and
renewable fuel for blending with petrol. The sugar industry in the country uses
only sugar cane as input; hence sugar companies have been established in large
sugar cane growing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat,
Tamil Nadu and Andhra Pradesh. In the year 2003-04 these six states contribute
more than 85% of total sugar production in the country. Sugar production is
spread across the globe; it is produced in over 122 countries. Globally, two
distinct raw materials are used for producing sugar via sugar beet and
sugarcane. The use of sugarcane or sugar beet for producing sugar highly
depends on the climatic conditions of the country. The tropical climate is apt for
growing sugarcane whereas temperate regions are suitable for growing sugar
beet. Thus, countries in the tropical or sub- tropical belts like Brazil, India and
Thailand use sugarcane whereas in countries like the US and EU, sugar beet is
used for producing sugar. Globally, almost 70 per cent of the sugar is produced
7
from sugarcane and the rest of the 30 per cent from the sugar beet. It was
expected that the global sugar supplies would be back to comfortable levels
after two years of shortfall, however extreme weather in Australia and Indonesia
will lead to shortfall in production. World sugar production is estimated at 161.9
mn tonnes for the marketing year 2010-11 down by 1.9 mn tonnes of early
estimates. The consumption is estimated at 158.9 mn tonnes, up by 1.2 mn
tonnes of early estimates. Sugar production in Australia may plunge to its lowest
level in 19 years to 3.58 mn tonnes due to Cyclone Yasi hitting Queensland
coast. Queensland accounts for about 90 percept of Australian sugar production.
The crop condition in Brazil, the largest producer and exporter of sugar, is not
very good due to poor rains. The entire South Brazil crop which meets two- third
of total global raw sugar requirement is rain-fed. As a result of these, global
sugar prices have been rising since February 2011 and we expect the prices of
global raw and sugar prices to remain firm over the next quarter due to tight
demand supply situation.
India Sugarcane and Sugar Area, Yield and Production (Sugar Season
October September) 2005-06 2006-07 2007-08 2008-
09 2009-10*
8
Area Under Sugarcane (Mn Hectares) 4.20 5.15 5.05
4.41 4.20
Production of Sugarcane (Mn Tonnes) 281.17 355.52 348.18
285.02 277.75
Yield of Sugarcane (Tonnes per Hectare) 66.90 69.00 68.90
64.60 66.10
Number of Factories in operation 455.00 504.00 516.00
489.00 490.00
Total Cane Crushed (Mn Tonnes) 188.67 279.29 249.90
144.98 185.54
Total Sugar Produced(Mn Tonnes) 19.26 28.36 26.35
Source: National Federation of Cooperative Sugar
Factories
India Sugar
Consumption
The sugar consumption in India has grown at a steady pace over the years.
It has grown at a Compounded Annual Growth Rate (CAGR) of 4.3 percent
during the period from SS1995-96 to SS2008-09. CARE Research expects
the sugar consumption at 22.8 mn tonnes in SS2010-11 and 24.5 mn tonnes
in SS2011-12. The growing population coupled with growing per capita
income will help the country achieve the projected growth rate. Due to the
inelastic nature of the sugar demand and comparatively lower per capita
sugar consumption, there will be minimal impact on sugar consumption
owing to rising sugar prices.
9
Fig.2. Sugar Consumption - Million Tonnes(Sugar Season October
September)
10
Source: (NFCSF)
11
Sugar
Production
Cycle
Source: CARE
Research
Regulation
Sugar being an essential commodity and on account of the higher
weightage in the Wholesale Price Index (WPI), the entire value chain of the
sugar industry is kept under the tight control of the Central and State
governments. The sugar industry in India is regulated right from cane
procurement to cane pricing, allocation of cane area to distribution of
sugar by the Central government and the respective state government.
During every SS, the Central government decides the price at which
sugar mill owners are to procure sugarcane from the farmers and also
the proportion of the sugar to be sold in the open market. Apart from
fixing the levy quota, the government also controls the quantum of sugar
to be sold in open market by each mill every month, in order to regulate
the price and the supply of the essential commodity. The Indian sugar
12
industry is the most regulated industry across the globe.
Source:
sugarbazaar.com
14
Alcohol Industry
Overview
Alcohol Production
in India (MN Kls)
Alcohol Industry
Segmentation
15
Source:
CARE
Rectified Spirit (RS)
Production in India
RS is produced from molasses, a by-product of sugar, and finds
applications in three main areas - chemical sector, fuel oil and potable
alcohol. RS is widely used as intermediates for manufacturing various
chemical acidic products such as acidic acid and other chemicals such as
mono ethylene glycol (MEG), which is used to make fibre.
IMFL
16
IMFL
Imports &
Exports
Indias IMFL import grew at a CAGR of 11 per cent over the FY06 and
FY10 period. The imports grew from 0.012 million kls in FY06 to 0.019
million kls in FY10. Only 5-6 per cent of Indias consumption is met
through imports. On the other hand, the exports of IMFL from India
declined at a CAGR of 1.1 per cent from 10.2 per cent of the production
in FY06 to 6.3 per cent of the production in FY10. The fall in exports can
be attributed to the rise in domestic demand.
Now as per data this are very biggest industry related to sugar and
their by product.
17
2. COMPANY PROFILE
2.1 INTRODUCTION & BACKGROUND:
Initially it acquired 1060 TCP (Ton Crushing Per day) Permission from the
Maharashtra Government in 1952. This unit asset base was moved to its
own location in Ashoknagar and expanded its capacity to 1500 TCP in 1965.
Indian technology machines and equipment are installed those were
provided by walchand industries. Then at year 1968 company was expand
sugar mill capacity up to 2600 TCP. As considering company progress in
year 1987 government of Maharashtra gives permission for 2800 TCP. In
year of 2002 as per sugar mill improvement and sugar &their by-product a
special act for ethanol give permission for distillery. Power plant was
established in 2010. Power plant machines and turbines are of BHEL. A
distillery and ethanol plant of 60 kiloliter per day capacity was added in
2002. The sugar refinery was set up to progress raw sugar to produce
refined sugar meeting European specification. The current capacity of the
sugar plant in Ashoknagar is 2800 TCD and 100 MT (Million Ton) of raw
sugar per day. The co-generation power plant is 15 MW plant. It is growing
very fast in industry. It is dynamic achievement of entrepreneur
Mr.Bhanudas Murkute. The company manufactured and traded over 500000
MT (Million Ton) of sugar in 2010-11 .Total trade flow puts the Company in
the top 10 of sugar producers/marketers in Maharashtra.
19
2.3 VISION, MISSION , POLICY:
Vision
Mission
Objectives:
Ashok Sahakari Sakhar Karkhana, aims to become the most efficient and
market driven integrated processor of sugarcane in the world. To enable the
team to grow in a learning and motivating atmosphere. To participate in the
all-round development of the community & delivering consistently on
returns to all its shareholders. Commitment to keep process environment
friendly.
Environment policy:
20
Environment policy has become a serious matter in the industrial scenario
in India. Central and State Governments have many guidelines, to be
followed by Industries. Ashok Sahakari Sakhar Karkhana commits to
incorporate environmental issues an integral part of management
philosophy in sugar and distillery operations. Towards this Ashok Sahakari
Sakhar Karkhana., will 1. Produce ethanol in a clean, green and safe
environment. 2. Comply with all relevant statutory regulations. 3. Train and
motivate employees on environmental and safety through participation. 4.
Maintain the motto of continual improvement management 5. Strive for
pollution prevention by optimizing resources.
SUGAR-
21
drinks and in home baking to add sweetness and texture to cooked
products. They are also used as a preservative to prevent micro-organisms
growing and perishable food from spoiling as in jams, marmalades and
candied fruits. L type sugars are granulated sugars with the grains their
size is large. This are made for various approaches . In food processing
industries and customer want for special purpose like in festivals various
sugar type made from this by crushing. Ashoknagar sahakari sakhari
karkhana produced M type sugar for domestic and food industries uses. In
the market after M type there should be more demand of S type sugar
Invert sugars also called S type and syrups are blended to manufacturers
specifications and are used in breads, cakes and beverages for adjusting
sweetness, aiding moisture retention and avoiding crystallization of sugars.
Harvesting and processing season may vary from country to country and
area to area and factory to factory depending on the convenience. Usually
the harvest starts in July/August and continues to April/May. Some factories
have the continuous supply of cane throughout the year, and they process
throughout the year without keeping the factory idle.
The bulk of the worlds sugarcane is harvested and loaded by hand and
transported by trucks, Lorries, tractors, and bullock carts from growing
place to factories. Some factories have railway track for the purpose of
transporting sugarcane and sugar.
By-Products of sugarcane:
The sugar mill produces many by-products along with sugar. A typical
sugarcane complex of 2800 TCP capacity can produce 345 ton of sugar,
6000 liters alcohol, 3 ton of yeast, 15 ton of potash fertilizer, 25 ton of pulp,
15 ton of wax, 150 ton of press-mud fertilizer and 750KW of power from
bagasse.
Molasses:
Bagasses:
The Company produces alcohol from the molasses (Molasses is the brown
coloured residue after sugar has been extracted from the juice. Molasses
still contains some quantity of sugar, but this sugar cannot be extracted by
usual technology) left after the extraction of sugarcane juice, which can be
used both for potable purpose as well as an Industrial chemical. Further,
this alcohol can again be purified to produce fuel grade ethanol that can be
blended with petrol.
Registered office:
Corporate Office:
2.7 COMPETITIORS
Jai Mahesh Sugar Industries Ltd. (Pawarwadi, Tal. Majalgaon, Dist. Beed)
25
Nira Bhima S.S.K. Ltd. (Tal:Indapur Dist.:Pune)
Sugar Production
process:
Juice Extraction:
Juice from the mills is screened and heated in various heat exchangers.
The juice is then treated with Milk of Lime, which reacts with the
impurities in juice. Sulphitation of the juice is done by passing SO2 gas
through the juice. The treated juice is further heated and let into a clarifier
where the impurities settle at the bottom and clear juice floats up and is
decanted. Water from the clear juice is evaporated in a series of
evaporators. Steam from the cogeneration power plant is used as heating
media for the evaporation. Condensate from the evaporators is recycled
back to the boilers where it is again converted into steam.
Crystallization:
27
Spirit Production Process
Fermentation:
Molasses containing 48% to 50% fermentable sugars from the sugar plant
is diluted with water in the ratio of 1:3. During the fermentation, yeast
strains of the species saccharomyces cerevisiae, a living micro- organism
belonging to class fungi converts sugar present in the Molasses, such as
sucrose or glucose to Ethanol. Normally one (1) ton of Molasses
containing 50% fermentable sugars give an alcoholic yield of 250 litres.
Optimum parameters like pH and temperature control and substrate
concentration are required for fermentation.
Distillation:
28
The fermented wash is pre-heated and pumped to the top of analyser
column. Steam or vapors are indicted at the bottom of the analyser
column, which strip the Ethanol from the fermented wash. The vapours
coming from analyser column consist approximately 50% Ethanol and 50%
water with impurities such as higher alcohols, aldehydes, acids, sulphur
dioxide, etc. Spent wash from the analyser column bottom is sent for
treatment to the Effluent Treatment Plant. The vapour draw from top of the
analyser is fed to pre-rectifier column for removal of low boiling impurities.
The vapours coming out of the top of the pre-rectifier column are fed to
the condenser. The condensed liquid is collected in the pre-rectifier
reflux tank. Impure spirit draw is taken from the reflux and fed to the T.A.
mixing bottle where it is mixed with the impure spirit coming from rectified
cum exhaust and fuel oil column.
Ethanol water mixture from the pre-rectifier column bottom is fed to the
rectifier cum exhaust column. This column serves to strip out Ethanol from
liquid stream flowing down. Steam is sullied at the bottom of the column.
The rectified spirit vapors coming out from top of the column are
condensed in the analyzer reboiler. Balance Ethanol vapors are condensed
in the analyzer vent condenser. The condensate from reboiler and vent
condenser are collected in rectifier reflux tank. Condensed liquid is
pumped back to the Rectifier cum exhaust column from the rectifier reflux
tank by reflux pump. Impure spirit draw is taken to the T.A mixing bottle.
The rectified spirit is drawn from upper tray of the Rectifier cum Exhaust
column and sent to rectified spirit storage via rectified spirit cooler. High
Fusel Oil and Low Fusel Oil are drawn from Rectifier cum Exhaust column
at the required rate. These draws are taken to the fusel oil cooler and
taken to the fusel oil column for further concentration. Spent lees coming
out of the Rectifier cum Exhaust column bottom is used to pre-heat the
feed to Rectifier cum Exhaust column in the rectifier feed pre-heater. A
spent lee is drained to gutter in a controlled manner by the level in the
Rectifier cum Exhaust column bottom. Fuel Oil Column basically is
concentrating the fuel oil received from the rectifier column so as have
efective separation of heavy fuel oils. Steam is supplied as a heat source
to concentrate fuel oil.
The Ethanol both pure and impure is first led into separate receivers. The
quantity of Ethanol produced is assessed daily in the receiver and it is
finally transferred to respective storage vats in the warehouse. The spirit
from storage vats will be issued for sale. There is strict control of State
Excise Department on raw material used, Ethanol produced, issue of
Ethanol and losses of Ethanol, during storage and transfer from one tank
to other tank.
29
Co-generation
Origin: The 7-S Framework was first mentioned in The Art of Japanese
Management by Richard Pascale and Anthony Athos in 1981. They had
been investigating how Japanese industry had been so successful. At
around the same time that Tom Peters and Robert Waterman were
exploring what made a company excellent. The Seven S model was born
at a meeting of these four authors in 1978. It appeared also in In Search
of Excellence by Peters and Waterman, and was taken up as a basic tool
by the global management consultancy company McKinsey. Since then it
is known as their 7-S model.
STRATEGY:-
ADMINISTRATIVE DEPARTMENT:
The administration controls and monitors the activities of the time office
and security personnel. Human Resource Development is the challenging
function in- front of the administration department.
CANE DEPARTMENT: Cane is the only raw material for producing sugar. The
department keeps a direct link with farmers and helps the farmer to
develop the cane. Objectives of Cane Department: . To procure the cane at
proper time and proper condition. . To look after the transportation of cane
from farmers through trucks tractors and carts. To develop the cane and
giving proper guidelines to grow. . To keep and maintain concerned land
database. . Hiring trucks and tractors. . Harvesting cane. Circle office:
Assistant cane development officer heads the circle office there are 20
circle officers located at diferent places surrounding from where cane is
being produced. Supervisor assists circle officer. There is one supervisor
for 1500 acre. Supervisors are to report corresponding circle offices.
Weekly report has to be sent the cane manager.
DISTILLERY: Distillery Plant was located in the year 2002 at the same
location. Spirit is produced at the distillery plant. Molasses converted into
rectified spirit. Molasses is waste product from sugar juice. It is the by-
product in the sugar industry. Production of spirit is subject to control of
excise department (Maharashtra state government). The same
department makes distribution and sale of spirit only. Ethanol is also
subject to control of excise department. In India 5% ethanol is used in
petrol. Industrial buyers for ASSK: Product Customers Sugar.
SKILLS:
STYLE:
This part of McKinsey 7-S framework includes the leadership style of top
management and the overall operating style of the organization. It also
includes the motivational style used in the company. Some other
important areas which come under style are: 1. How does top
management make decisions (Ex participatory v/s top-down)? 2. How do
manager spend their time (Ex: informal meeting, informal conversation in
the field with customer)? Leadership Style Leadership is diferent to
management. Management relies more on planning, organizing and
communication skills. Leadership relies on management skills too, but
more so on qualities such as integrity, honesty, humility, courage,
commitment, sincerity, passion, confidence, positivity, wisdom,
determination, compassion and sensitivity. Some people are born more
naturally to leadership than others. Most people don't seek to be a leader.
Those who want to be a leader should develop leadership ability.
Leadership can be performed with diferent styles. Some leaders have one
style, which is right in certain situation and wrong for others. Some
leaders can adapt and use diferent leadership styles for the given
situation. A number of leadership styles are given below. . Authoritative
Leadership. . Democratic Leadership. . Participative Leadership. ASSK
Perspective: In the modern business situation of ASSK, the company is
using Democratic Leadership style. Anyone in the firm can directly meet
any one. Daily meetings will be held between the sales team and the
team manager to solve the problems of the teammates and to collect the
sales details. Team manage will report to the AGM (Assistant General
Manager) on the same day. Once in a week AGM will meet the sales
executives. Once in a month Vice-Chairmen of the organization meets all
the managers. The decision power is handled By CEO. He will take major
decisions regarding developmental activities and relationship with other
dealers and corporate buyers. Each department is given power and
responsibilities to operate and take decisions. ASSK has instituted
adequate internal control procedures commensurate with the nature of
business and size of its operations. ASSK has also prepared an Internal
Control Procedure Manual for all the departments to ensure that the
control procedures are followed by all departments. Internal controls are
supported by internal audit and management reviews. The Board of
Directors has an Audit Committee chaired by an Independent Director. The
Audit Committee meets periodically the management, . External-internal
auditors . Internal-internal auditors . Statutory auditors and reviews the
audit plans . Internal controls . Audit reports and the management
response to the observations and recommendations emanated from the
audit. All significant observations and follow-up actions are reported to the
Audit Committee. The Audit Committee has met seven times during the
financial year. 3.7
SYSTEM:
System refer to the formal process and procedure used to manage the
PRESIDENT organization including the management control system,
performance management, measurement and reward system, planning,
budgeting, resource allocation, MIS, distribution system, accounting
system, trading system etc. Systems maintained by the ASSK: The firm
has both manual and also computerized systems. . Financial system/
Accounting System: Currently they are using Tally 7.2 as the accounting
software. Each branch and department is divided and each have their own
files maintained, and at the end of the day the data will be transferred to
the main branch which will be processed together by the finance manager.
2. Customer data base system: The details of the customers are
maintained in the software called SAP which helps in maintaining long
relationship with the customers, and also help in the process of any
difficulty arises. This will help them to shortlist the deliveries and timely
delivery of cars. 3. Compensation system/ Reward system: The salary
details of various designations, payment dates and payments made are
recorded and also the incentives given are also maintained here. The
software used for this purpose is SAP. 4. Attendance System: The VB*
Punching Machine is used to record the attendance of the employees. The
employees has to insert there thumb on the machine when they comes to
the company and at the time of going again they has to insert his thumb
on the machine. This enables the company to have proper recording of
the attendance.
STAFF
Staf (in the sense of people, not line / staf) is often treated in one of two
ways. At the hard end of the spectrum, we talk of appraisal systems, pay
scales, formal training program, and the like. At the soft end, we talk
about moral, attitudes, motivation, and behaviour. People are one of the
most important assets of the company. The technologies, Products and
structures of a company can be copied by competitors but no one can
match the highly charged, motivated people who care these things.
People are firms repository of knowledge and they are central to
companys competitive advantage. Well educated, coached and highly
motivated people are critical to the development and execution of
strategies, especially in todays faster- paced, more perplexing world,
where top management alone can no longer assure firms
competitiveness. The staf of ASSK Top, middle and lower management
have nurtured following qualification thereby being able to meet the
expectations of their valuable customers. . Quality: ASSK staf maintains
professional attitude among all employees. . Line & Staf Relationship:
Line refers to those positions of an organization, which have responsibility,
authority and is accountable for accomplishment of primary objectives.
The relationship existing between two managers due to delegations of
authority and responsibility and giving or receiving instructions or orders
is called line relationship. Line authority represents uninterrupted series of
authority and responsibility delegating down the management hierarchy.
ASSK has adopted Line & Staf organizational structure that ofers
individual the opportunity to meaningfully learn & participate across
diverse business processes. The Managing Director of the company
responsible for the Quality Management System. He is overall in-charge
overseeing the overall growth of the company, whereas plant heads look
after day -to -day activities. The business process heads, as shown in
overall organization chart, are treated as top management to establish,
implement, maintain & continually improve efectiveness of Quality
management to establish, implement, maintain & continually improve
efectiveness of Quality Management System. The Deputy General
Manager follows the Managing Director. The team leaders of various
departments report to the Deputy General Manager.
Shared values are what engender trust and link an organization together.
Shared values are also the identity by which an organization is known
throughout its business areas. These values must be stated as both
corporate objectives and individual values. Every organization and every
leader should have a diferent set of values that are appropriate to its
business situation. How To Establish Shared Values? Ensuring employee's
understanding of organization's values and vision requires the
organization to have clearly defined values. Without this, organization can
get itself into real trouble. . Defining shared value is more than putting
words on the paper. Most organizations have values statements or mission
statements, yet many do not follow them. Winning organizations create
successful cultures in a systematic way using various approaches that
may include visual representations, training seminars, and/or socializing
events. Unlike the other six Ss, super ordinate goals (Shared Values)
dont seem to be present in all, or even most organizations. They are,
however, evident in most of the superior performers. The diferent values
system of subordinates is to be responsible to their departmental duties
as delegated by the functional / departmental managers. The organization
can work efectively and efficiently if there is proper co-ordination. Culture
of the company practice integrity, honesty, commitment, promoting
salesmens.) . The company promotes Team Work. . The company value
leadership. (Result oriented and innovative, positive attitude). The
company have a passion for excellence (competing with global standards).
The company reward and recognize the standard
SWOT ANALYSIS
INTRODUCTION:
Strengths
-Fully integrated player
-Reduced impact of seasonally.
-Excellent relationship with Sugarcane farmers.
- Registering co-generation plant proper roads & highways leads to for
carbon credits.
-Right products, quality and outputs.
-Superior product performance as compared to competitors.
- New technology in Manufacturing.
-Well planned infrastructure
-Abundant and Assured plan of Sugarcane
-Power Supply to state grid
-Lowest Process Losses
-Highly skilled and motivated workforce
-Self-sufficient in power and water
-ASSK is the second largest producer of sugar in the north nagar region
after sanjivani.
Opportunities
-Integrated distillery.
-Well placed for exports.
-Superior Technology.
Focus towards corporate and supply of sugar-cane.
- Track record of successful acquisitions.
-Machinery that can be upgraded for higher capacities
-Opportunity to get into value added business
-Opportunity to set up bagasse based paper plant
-High value of by-products for down stream industries.
-Huge potential to increase the productivity of cane and sugar recovery
rate.
-Technology upgradation, new advanced technology available for the by-
product utilization.
-Develop closer ties with the community and stakeholders
-Educate the community about local industry issues. - Superior utilization of
fixed assets.
Weaknesses
- Extra cost of exporting raw sugar.
-Non availability of raw sugar in excess
-Cyclical Industry
-Highly regulated Industry
-Virtually No control over Raw Material Price
-Lackadaisical attitude of government in providing infrastructure such as
roads etc
-They have found difficult to pay for the sugar cane supplied by the
farmers.
-Most of the machinery (Nearly 50%) is more than 30 years old and still
using the old technology
Threats
- Competition from other Sugar Mills.
-Pricing policy of the government.
-Dependent on farmers for the industrial buyers.
-Import of Sugar
-Frequent changes in Government Policies
-Sugar sector is vulnerable to political interest.
-Ground water availability for irrigation.
-Quality of soil deteriorates due to overuse of fertilizer and pesticides to
increase Sugarcane yield.
-Increasing urbanisation in Ashoknagar areas.
Analysis of financial information
Balance sheet:
2010-11 2009-10
A) Source of Fund
1.Share Capital 93957994 76122475
104574574 307730817.
2.Reserve &Surplus 1 9
734541138. 633834297.
A.etc 8 3
660838670. 766204896.
3.Secured Loan 1 7
11028781.0 19799617.0
4.Unsecured Loan 8 8
TOTAL DEBT
5.Total Liabilities
254611232 180369210
TOTAL 5 4
B) Application of Fund
122200276 452911602.
1.Gross Block 1 7
2.Investment 24672415 56321415
3.Current Asset
972708590. 915050812.
C.A. 2 1
79198446.3 121902314.
Capital 1 1
4.missleneus Expenses
214858480. 176883360.
Adv. 8 4
32671634.9
P L Ac 5 80622600
254611232 180369210
5 4
------------------------------------------------------------------------------------------------------------
2009-10 2010-11
PROFIT LOSS ACCOUNT
A INCOME
1 Sale
12749199.9 151077315
sugar 4 4
by- product 71279301.4 73641556
31028984.0 47402913.
2 Other income 4 48
16612166.
by- product Profit 7215653.89 58
138444389 164842979
TOTAL 0 0
B EXPENDITURE
1 R.M. 819707131 973662399
excise duty 26055458 29212044
transport 105881586 168076259
7182190.5
supply 3077727.86 1
25313594.9 42822640.
development 3 21
117129303. 137853830
salary 4 .5
65838341.5 86553777.
strore 3 96
12233469.0 20919651.
selling expence 1 88
26299972.8 34435833.
administration 7 97
31921398.3 81655206.
interest 1 81
EBITDA
Depreciation - 16723057 18104992
EBT
SHORT TERM
RATIO 2009-10 2010-11
1)Current Current Asset 2.5 1.71
Current
Liabilities
2)Quick Liquid Asset 0.31 0.13
Liquid liabilities
LONG TERM RATIO
1)Debt. Equity Long Term Debt 0.73 1.66
Equity
PROFITABILITY
RATIO
EBIT &
1)Interest cover Depreciation 5.27 5.43
Interest
2)Return on
investment Net Profit 23% 15%
Capital
Employed
3)Net profit Net Profit 9 11
Sale
TURNOVER RATIO
1)Return on Asset Net Profit 41% 15%
Total Asset
2)Inventory Cost of goods
Turnover sold 7.59 6.66
Avg. Inventory
3)Deposit
Turnover Sale 44.66 22.45
Avg.Debators
4)Capital
Employed Sale 4.48 1.76
Capital
Employed
LEARNING EXPERIENCES
Production: The Company has sugar laboratory which conducts tests and
check for suitability of product to health care. . All employees have to
wear uniform on all working days. This shows the discipline of workers. .
The plant is designed in the shop floor and the movement of materials
from one machine to another is easily understood by me.
PART B
GENERAL INTRODUCTION
Aim
Statement of problem
In Ashok Industries existing model of manufacturing process
management of distillery as well as sugar is not flexible with production.
To enhance production of distillery proposed new manufacturing process
model.
H4=Seasonal Production
Data collection
The data collection was done mostly during crushing season, which
usually takes 180-210 days (6-7 months) a year, starting from the month
of June or July. A good research required for comprehensive data collection
and analysis and also to investigate the dynamics of the sugar industry in
and the village level sugar processing plants in particular.
Data collected was analysed qualitatively as well as
quantitatively by computer coding using Microsoft Excel programmes.
Descriptive statistics, mainly the frequency distribution was used to
analyse the level of impact made by the installed equipment.
Conferences, seminars and workshops were utilised to discuss and
evaluate the existing problems facing the sugar industry. Participants in
those included key players in the sugar industry and technology in
general. These include international experts and officials from government
ministries (Industries and Trade, Agriculture, Planning Commission,
Research Institutions and Finance), and the private sector (potential
entrepreneurs and traders).
The framework for technological appropriateness in rural
development in
The project was to check the opinion of the Manufacturing Process
Management users about whether it helps in developing efectiveness in
the business using primary as well as secondary data. The primary data
was obtained through observation, direct communication with the people
in industries.
The data collection tool that I have used is Questionnaire & technical
information of industry . I have selected questionnaire as a data collection
tool primarily because of descriptive nature of sampling & secondly it was
the most suitable tool that could help in achieving all the objectives of the
study & to do the analysis deeply and efectively.
I directly communicate with management body and employees working in
Engineering, Production department of the firm.
.
Primary data
Direct communication with people in the industries which are from various
department.
Secondary data
Secondary data was collected from other organisations involved with the
technology such as Sanjivani SSK & other chemical industries/ distillery,
relevant regional and district government offices etc. Secondary data is
also collected from industries documents
2. ANALYSIS AND INTERPRETATIONS
What is Process Management?
Concept Planning
Detailed Planning
Supplier selection
Process development
Equipment build-up
Pre-acceptance co-ordination
Realisation
Installation management
Production validation
Ramp-up support
Each phase of the PDP has its own detailed process. Defined quality gates
secure the fulfilment of the required activities and release to the
interdependent phase. This enables us to ensure the production is
developed in view of optimum manufacturing processes, quality, and
investment.
Fig. MPM functional Area
Proven Process gives you the opportunity and the confidence to outsource
your entire project. Proven Process can take a product from inception to
delivery. Because we take the time to fully understand and properly
specify your requirements, Proven Process creates the right design for
your product. PROVEN PROCESS seamlessly transitions from product
concept through product approval and production. The process provides
the assurance of market delivery. Concept to Customer Turnkey Service
includes every step in the process that leads you to your own customers
door:
Benefi ts of MPM
Application
A) Cost
Optimization of Good - -
Process
Maintenance High Adding time Extra
maintenance maintenance for
boiler & system
3) Analysis of process
A) Cost
B) Technical Aspect
3) Analysis
A) Cost
B) Technical Aspect
Efectiveness of No - average
Process
Flexibility of No - average
Process
Optimization of No - average
Process
3) Analysis of process
A) Cost
B) Technical Aspect
Optimization of No - Average
Process
3) Analysis of process
A) Cost
B) Technical Aspect
Existing model is 3:1 type means 3 boilers for sugar mill 1 boiler for
distillery.
4. BIBLIOGRAPHY
www.wikipedia.org
www.microsoft .com/dynamix
5. ANNEXURE
Questionnaire
What strategy you used to improve your process?
British Sugar, part of the Associated British Foods (ABF) group is the leading sugar
supplier in the UK, providing sugar for the top brand names in sugar confectionery,
chocolate confectionery, soft drinks and preserves etc.
British Sugar has six sugar factories across the UK, and each factory is split between a beet end
and a sugar end. Typically, a factory processes beet between September and March, termed the
Campaign. The beet end employs various processes to create thick juice a liquid which has a
65% sugar content. The sugar end boils the thick juice and seeds it with tiny sugar crystals which
provide the nucleus for larger crystals to form and grow to create sugar. The business of processing
beet gives rise to several interesting challenges which directly affect process efficiency, sugar yields
from the beet, and ultimately factory profitability. British Sugar needs to consider several factors: They
must carefully manage relationships with beet growers so that the sugar content in the beet is at the
highest percentage at the time of harvest; The process plant needs to be thoroughly tested and
operational in time for commencement of the campaign and factory managers must quantify and
schedule the amount of beet which can be received at the factory to match process plant capacities,
knowing that once the beet is harvested, the sugar content in the beet reduces over time. Outside of
the campaign a factory undergoes an extensive maintenance programme. If a factory can store the
thick juice the sugar end processes can continue to produce sugar long after beet harvesting has
finished. This enables the factory to utilise its sugar end equipment, therefore maximizing a greater
Return on Capital Employed (ROCE). As part of a strategic business development program to
maximize economies of scale and usage of process plant across each sugar factory, the sugar factory
at Allscott,
Shropshire was identified for major expansion to meet overall business objectives. The
planned expansion would approximately double capacity to 850,000 tonnes of sugar beet every year
and extends the production cycle of the sugar end processes beyond the end of the campaign. This
daunting target was met by enhancing 50 percent of the factory (beet end) over a two-year time
frame. The expansion of the beet end processes involved the construction of two thick juice storage
tanks, and associated process control. These new tanks have a combined storage capacity of 86,000
tonnes. The scheme also involved the implementation of replacement process control schemes for
another six sub processes,
2001/2002 Allscott factory Upgrade
1 - Beet Intake
2 - Pre Scalder
3 - Wet Pulp
4 - Lime Kiln
5 - Rotary Vacuum & GP Filters
6 - Falling Film Evaporators (FFE)
7 - Factory Wide Heating Duties
8 - Thick juice import & export
Pre 2000 Process Enhancements
9 - Pelleting
10 - Boiler & Turbine Control
11 - Pans
12 - Sugar Screening
13 - Sugar Silo Air Conditioning
The Allscott factory has been producing sugar since 1927, and to date this project is the largest in the
history of the site. The selection of the correct process control specialist was critical to achieving a
smooth implementation, therefore particular emphasis was placed on proven project management
and in-depth knowledge of disparate control systems. In this case Rockwell Allen Bradley for
sequence control, and Eurotherm for complex continuous control. The process control aspects
required the re-configuration of redundant control equipment coupled with the integration of new
control equipment. Process control programming software was used to configure nine control panels
located geographically around the site, communicating over a fibre optic network to supervisor
workstations. The nine control panels contain numerous distributed processors.
To complement the changes carried out at the factory floor level the sites
supervisory systems were upgraded. Servers were enhanced and workstations added to provide
operators with the high visibility required to control the new and modified processes. By factory start-
up over seventy graphic pages and windows had been created or modified, and in excess of a
thousand tags had been added to the various databases. Like many advanced manufacturing plants
British Sugar require significant amounts of data to be recorded for plant optimisation and product
traceability. In this instance a dedicated, high-availability server was assigned to manage the
collection and storage of factory floor data for various Manufacturing Execution System (MES) related
tasks. These included: the configuration and presentation of key trend data; the management of the
interface between factory data and the companys Wide Area Network (WAN); the conversion and
archive of data onto the companys Oracle database and the backup of all the control server images
and databases.
The significance of this project did not allow for any compromise, delay or partial
failure. Flexibility, reliability and best in class were the terms of reference. Any delay in factory start up
would directly affect the supply chain, and process failure could result in customer commitments not
being met and/or the implementation of costly alternative strategies. As before, British Sugar turned to
Charter Tech, an independent systems integrator with proven experience of integrating disparate
control systems and over ten years experience of providing solutions and services to British Sugar
across the majority of its factories. Charter Tech personnel assisted with all stages of the project from
initial consultation to final implementation and commissioning. Charter Tech engineers worked side by
side with the British Sugar project team, during the entire project life cycle to ensure the final solution
met the business requirements and maximized plant efficiency. The flexibility and approach of Charter
Tech personnel allowed British Sugar staff to develop solutions to problems as they occurred.
The British Sugar Project Engineer commented
I enjoyed the way that the Charter Tech team responded, sometimes at short notice, to problems
without fuss to ensure the job got completed.