om project assignment.docx

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A PROJECT REPORT ON

PAS3 & COMPANY

POWER DETERGENT POWDER

WITH S3A2P FORMULA

SUBMMITED TO: SUBMMITED BY:

Prof. SUSMITA PAUL (GROUP 5)

PAARIJAT - 31

SHOBHIT - 44

ANUJ - 06

SANCHI - 40

APURV - 08

SHIKHA - 43


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TABLE OF CONTENT

Company profile...

Products.

Production plan.

Aggregate planning..

Product layout...

Quality for product

Quality certification..

Procurement function..


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Company profile

. PAS3 & company was established in 2011, the company is an partnership firm. This

partnership firm under the guidance of shobhit mittal, sanchi, shikha, apurv, anuj and

paarijat has managed to conquer a segment of the market in Delhi NCR. PAS3 &company operate on the principle of appointing stockiest agents in all towns and cities.

The policy is to aim at smaller profit and larger turnover. Retail outlets and door to door

selling methods are not used. Though sales staff is employed to supervise, book orders

and conduct promotion campaigns.

Products

We are one of the leading small scale industry unit in Delhi NCR, manufacturing

synthetic detergent powder, cake, laundry detergent, laundry/washing soaps, dish

washing bar and bathing bar, under our brand name power, white, fragrance, detergent

powders with S3A2P formula etc.

Production Plan

Business Operation

The company fallow the 5 days a week and 22 days a month operating plan

The 24 hours production is distributed in 3 eight hours shifts

Which then equals 120 hours a week,528 hours a month and6336 hours yearly.

The adjustments are done like over time in peak demand and under time in slack time

shutdown periods

The shut down periods are 4 times a month and 48 times a year respectively.

Due to high demand in peak time company reduces the shutdown periods accordinglyno of shifts

The work is distributed in to 3 shifts production plan capacity,proceses type(auto or

manual) ,purchasing material inventory ,plan suppliers ,office equipments ,labor force

no of employees skill levels and types genders, age range ,compensations ,salary plans

,retirement period.


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Competitive strategy

In competitive strategy there are some sort of pressure on you, which have, you must

the capability to face it like they are:

Pressure of Buyers:

When there is a lot of sellers lying in the market then buyer has power to influence.

Pressure of Suppliers

One supplier for a company can exploit the company. Therefore detergent company has

3 Suppliers for the purpose to bargain with them effectively.

1. Threats of Substitutes:

In the detergent market people have choices as they can take Surf Excel and Ariel

alternatively.

2. Threats of new entrance:

New coming brands of China and other smuggled brands are huge threat for company.

As concern of competitive strategy the organizations really should focus on following of

three strategies

Differential strategy when we see towards the company they have really provide the

good quality products to the consumers like packing and beautiful appearance with

beautiful colors and images as well as Unilever focusing on best quality of detergent as

charging the premium on it.

Made By:

Paarijat PGFA1131


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Aggregate Planning

Aggregate planning is the process of planning the quantity and timing of output over the

intermediate range (often 3 to 18 months) by adjusting the production rate, employment,

inventory, and other controllable variables. Aggregate planning links long-range and

short-range planning activities. It is aggregate in the sense that the planning activities

at this early stage are concerned with homogeneous categories (families) such as gross

volumes of products or number of customers served. Master scheduling follows

aggregate planning and expresses the overall plan in terms of the amounts of specific

end items to produce and dates to produce them. It uses information from both

forecasts and orders on hand, and it is the major control (driver) of all production

activities.

Aggregate Planning for Production

An aggregate planning is a process by which company determines levels of production

capacity, subcontracting, inventory, stock outs and even pricing over specified time

horizon, the goal of aggregate planning is to satisfy demand in a way that maximizes

profit. Generally, the demand rate varies over time and the associated problem

becomes a dynamic planning problem but it is assumed to remain the same during a

fixed period stated in the planning time horizon.

The following are some of the alternatives available for planning to meet the

fluctuating demands.

Build inventories during the period of peak demand in anticipation of higher demand

rates later in the planning periods.

Carry backorders during the periods of peak demands.

Use overtime in peak periods or under time in slack periods to vary output.

Use subcontracting in peak periods.

Vary capacity by changing the size of the workforce through hiring and firing.

Vary capacity through changes in plants and equipment. Since we typically are

concerned with planning horizon less than a year, we usually shall assume that facilities

are fixed and thus this alternative is not available to the planner.


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The optimal combination of these alternatives involves proper trade-offs between

the following types of costs:

Production costs which include any out-of-pocket costs that is associated with

production rate.

Inventory holding costs.

Shortage losses associated with backorders and lost sales.

Costs of increasing and decreasing workforce levels. These include hiring and training

costs and separation pay and other losses associated with firing or laying off workers.

Costs of deviating from normal capacity through use of overtime or under time.

Made By:

Anuj PGFA1106


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Product layout

In a product layout, the workstations and equipment are located along the line of flow of

the work units. Usually, work units are moved along a flow line which is powered by a

conveyor. Work is done in small amounts at each of the workstations on the work unit.This means that to use the product layout the total work must be dividable into small

tasks that can be assigned to the workstations. Product Layout is one of the three basic

types of plant layouts; the other two are process layout, and the fixed-position layout.

When the workstations are relatively few in number, they can be arranged in one

straight line. In more complicated plants such as the automobile final assembly plant,

they can be arranged into a series of connected line segments.

Because the workstations do small amounts of work, the stations are specialized in their

tasks with specialized equipment and tooling, which leads to high proficiency and

reduced cycle time. And this also leads to a higher production rate.

Process Taken In Product Layout

1. Washing Powders (Detergents, Soaps, Surface Active Agents) :

The free-flowing, non-dusty, non-caking products in bead form are produced in counter-

current flow dryers with nozzle atomization is the preferred layout for high-bulk-density

detergents. Feeds are homogenized and fine-filtered prior to passing to nozzles

operating at high pressure. Hot air from direct-fired air heaters enters at the base of the

cylindrical part of the tower with slight rotary motion. The exhaust air is drawn from the

top of the tower. Inlet temperatures vary according to product. Up to 400C (750F) is

used for some detergents, but lower temperatures are used for fine washing agents.

Product recovery from the drying tower is high (99%). The fines fraction is usually

returned to feed preparation. Open - cycle dryers are normally used, Co-current dryers

are used for low - bulk - density detergents.

2. Soda Products :

Detergent formulations consist basically of (a) an active ingredient (b) sodium

tripolyphosphate, (c) silicates, (d) sodium sulphate. Normally the active ingredients are


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fatty alcohol sulphates, primary and secondary alkyl sulphonates and alkyl aryl

sulphonates. Synthetic detergents are currently based upon linear alkyl benzene

sulphonates. Formulations are with variations as decided by each company.

3. Heavy - Duty Detergents

Synthetic detergents are widely used in cleaning of all types and operate successfully

with hard water. The coarse powder granules in bead form are free-flowing, non-dusty

and readily dissolve in water. Shelf-life is excellent, with no tendency to instability or

lumping. The feed can be formulated batchwise or continuously. Comp slurry

preparation systems ensure the right preparation technique which improves the quality

of the final dried detergent powder. Precise weighing / metering, mixing, homogenizing

and de-aeration take place before spray drying. As high a solid content as possible is

used (50 - 65%) to give the optimum powder bulk density and best economic use of the

spray dryer.

The product is dried in a counter-current-flow drying tower at inlet temperature 350 -

400C (660 - 750F). The dried powder leaves the base of the drying tower and is

transported via a conveyor belt to an air lift. During passage on the belt, product dosing

is carried out. Dosing materials can be products that would damaged during spraydrying, e.g. lauryl alcohol, enzymes. Bleach along with enzymes is also added at this

stage. Perfume is added after the following air lift.

4. Light Duty Detergents

Light - duty detergents are used less than heavy duty. They find wide application only in

dish washing and light household cleaning (janitoring). Light -duty detergents are

produced in nozzle towers with either co-current or counter-current flow. Choice

depends upon required bulk density. Inlet drying temperatures are also lower, 250 -

275C (480 - 530F)

Made By:

Sanchi Malhotra - PGFA1140


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Quality For Our Product And Services

Delivering products with high quality -- defined as meeting specifications at the low

cost and and customers satisfaction -- is a top priority for manufacturers and industrial

operations. Quality has many aspects and Surf Excel provides value at preferable cost.

It meet its quality needs worldwide i.e., standardized quality throughout India.

Quality Management is a combined philosophy of management for continuously

improving the quality of products and processes. It is the application of quantitative

methods and human resources to improve all the processes within an organisation.

Quality Management is continuously updated by ISO, these standards are not specific

to any industry or product but are universally applicable and recognize.

ISO certification is mandatory for all manufacturers and service providers selling to

multinationals or governmental organization.

Measures for Quality of Power Detergent

1.Customer Satisfaction: Whether the customer is satisfied after its use

or not.

2.Responsiveness: It refers to the turnaround time of customers.3.Reliability: The chance that the product is completely vital to use , that

it doesnt produce any kind of poisonous effect on clothes, which would

hamper the quality in terms of human health and clothes.

4.Serviceability: It refers to how easily the product is available to the

consumers when required.

5.Aesthetics: It refers to how the product (Surf Excel) looks, smells etc.

6.Safety: Assurance that customer will not suffer injury or harm from aproduct; and specially important consideration for consumption by

children.

Made By:

Shikha Singh - PGFA1143


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Quality Certification For Our Detergent

ISO 9000 is a family of standards related to quality management systems and designed

to help organizations ensure that they meet the needs of customers and other

stakeholders. The standards are published by ISO, the International Organization for

Standardization, and available through National standards bodies. ISO 9000 deals with

the fundamentals of quality management systems, including the eight management

principles on which the family of standards is based. ISO 9001 deals with the

requirements that organizations wishing to meet the standard have to fulfill.

Third party certification bodies provide independent confirmation that organizations

meet the requirements of ISO 9001. Over a million organizations worldwide[4]are

independently certified, making ISO 9001 one of the most widely used managementtools in the world today. Despite widespread use, however, the ISO certification process

has been criticized as being wasteful and not being useful for all organizations.

Reasons for use

The ISO family of standards is the only international standard that addresses systemic

change. The global adoption of ISO 9001 may be attributable to a number of factors. A

number of major purchasers require their suppliers to hold ISO 9001 certification. Inaddition to several stakeholders benefits, a number of studies have identified significant

financial benefits for organizations certified to ISO 9001, with a 2011 survey from the

British Assessment Bureau showing 44% of their certified clients had won new

business. Corbett et al (2005) showed that certified organizations achieved

superior return on assets compared to otherwise similar organizations without

certification. Hears et al (2002) found similarly superior performance and demonstrated

that this was statistically significant and not a function of organization size. Nave and

Marcus (2007) showed that implementing ISO 9001 led to superior operational

performance. Many others identified similar improvements in operating performance

and linked this to superior financial performance. Chow-Chua et al (2002) showed better

overall financial performance was achieved for companies in Denmark. Many business

firms showed that ISO 9001 certification resulted in superior stock market
http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/Standards_organization#National_standards_bodies_.28NSBs.29http://www.iso.org/iso/iso_9000_selection_and_use.htmhttp://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://www.bsieducation.org/Education/HE/subjects-standards/quality-management/quality-management.shtmlhttp://en.wikipedia.org/wiki/Return_on_assetshttp://en.wikipedia.org/wiki/Return_on_assetshttp://www.bsieducation.org/Education/HE/subjects-standards/quality-management/quality-management.shtmlhttp://en.wikipedia.org/wiki/ISO_9000#cite_note-3http://www.iso.org/iso/iso_9000_selection_and_use.htmhttp://en.wikipedia.org/wiki/Standards_organization#National_standards_bodies_.28NSBs.29http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardization


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performance and suggested that shareholders were richly rewarded for the investment

in an ISO 9001 system.

While the connection between superior financial performance and ISO 9001 may be

seen from the examples cited, there remains no proof of direct causation,though longitudinal studies, such as those of Corbett et al may suggest it. Other writers,

such as success full business firms have suggested that while there is some evidence

of this, the improvement is partly driven by the fact that there is a tendency for better

performing companies to seek ISO 9001 certification.

Advantages

It is widely acknowledged that proper quality management improves business, often

having a positive effect on investment, market share, sales growth, sales margins,

competitive advantage, and avoidance of litigation. The quality principles in ISO

9000:2000 are also sound, according to Wade and also to Barnes, who says that "ISO

9000 guidelines provide a comprehensive model for quality management systems that

can make any company competitive." Implementing ISO often gives the following

advantages:

1. Creates a more efficient, effective operation

2. Increases customer satisfaction and retention

3. Reduces audits

4. Enhances marketing

5. Improves employee motivation, awareness, and morale

6. Promotes international trade

7. Increases profit

8. Reduces waste and increases productivity.

9. Common tool for standardization.

Made By:Shobhit Mittal - PGFA1144
http://en.wikipedia.org/wiki/Longitudinal_studyhttp://en.wikipedia.org/wiki/Longitudinal_study


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PROCUREMENT FUNCTION: AN EXAMINATION OF ITS VALUEADDED ELEMENTS

The procurement philosophy of every organization must be to obtain the most

suitable goods and services at the most reasonable contract prices, delivered when and

where required .This maximization of the companys resources in terms of the acquisition of

materials for manufacture, production and firm use is in a continuous process of

development, as more cost-effective and efficient ways are being introduced in the field of

procurement. The purchasing function has received considerable attention in the past

decade as firms are constantly finding ways to increase the effectiveness and the efficiency

of the task of acquisition, particularly in its people, processes, technologies and the

framework under which they are governed and measured ( 2006). This could lead to an

overall increase in the business profit, as cheaper prices, less wastage in materials and

fewer delays in the production of goods and/or provision of services are products of careful

purchasing.

There are four main recipients of value added by the purchasing department,

according to (1999): the organization, the employees, the consumers and the suppliers.

The perception of "value added" is critical to every function/department in any organization

in today's business environment. Unless there is a clear understanding at the senior

management levels that purchasing does contribute at a significantly higher level of adding

value, then purchasing people probably will continue to be considered simply as "order

placers." It matters less what any person or group in purchasing thinks about their ability to

contribute; what matter more is senior management's perception of the purchasing

departments actual contribution ( 1993). With the increased focus on finding ways to

economize on purchasing costs, the procurement function has been elevated to a strategic

component of creating value. (n.d.) stated that apart from salaries, the biggest area of

expense for most businesses is purchasing. He said that a sharpened focus on buying canreduce a business costs by as much as 20%. Thus, apart from the sales department, he

argues that no other area of the business could potentially have so much impact on the

bottom line.


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The modern procurement organization is typically focused on delivering eight or

nine key processes. These range from managing the transactional activities such as raising

purchase orders and paying suppliers to the strategic activity of selecting new suppliers and

managing relationships with the existing supply base. It is the strategic and tactical

procurement processes that deliver the big improvements that companies are seeking from

their procurement functions (for example, reduction in cost of goods sold, improvement in

service levels), explain (2006). In the value chain analysis developed by (1985),

procurement is viewed as a support activity that contributes to the competitive advantage of

a business unit by adding value. The purchasing function uses various inputs to perform

value-adding processes (market and value analyses, sourcing, negotiation, etc) and to

provide output like quality, services, materials, etc. If purchasing performs these activities

effectively, this output provides the organization with a competitive advantage (see figure1).

The value-chain demonstrates that the purchasing function has a major role in adding value

to the organization ( 2001).

PURCHASING ACTIVITIES

For many buyers, their new acceptance ofvalueadded is closely connected to

outsourcing and the need to use the resources of suppliers to conserve their own

companies' limited resources. Typical of purchasingprofessionals holding that view is ,

program manager, outsourcing, at Genus Inc.'s Ion Technology Div. in Newburyport, Mass.

She notes that her company's deep emphasis on adding valuethrough outsourcing was

driven by a desire to maximize use of the company's resources. By putting as much of

manufacturing in the hands of suppliers, Genus is able to deploy a greater percentage of its

resources behind its core competency--product development and testing ( 1995). The main

value added by purchasing, according to (2001) is assuring the continuity of supply in the

organization. The illustration of the purchasing process , demonstrates the flow of action

that happens within the purchasing department. The diagram is used for purchasing

transactions outside of the firm, as in-house transactions require simpler and faster

operations (the requisitioning activity will touch on the subject briefly). Each process will be

discussed in detail including the value added elements that go with it.


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Requisitioning

A requisition form always initiates the process of purchasing. The importance of

requisition is often overlooked by many organizations but this initial procedure provides the

purchasing officer with all the essential information that he or she needs in the actual

purchase of materials. The in-house form (which means that it is for use within the firm

only) usually contains these following items: (1) date of request; (2) name and department

of the person requesting for the material; (3) particulars of the item/items requested i.e.,

product code, brand or make, etc. (4) unit and quantity of item/items desired; (5) date

needed; (6) date of last request; (7) signature of the person requesting and (8) approval

signature of purchasing officer. The form is then forwarded to the purchasing officer. As in

the case of outsourcing materials, the purchasing officer will be the one responsible for

filling up a form (this time to be sent to the supplier), with basically the same items as that of

the in-house form but with additional particulars as the name of the supplier/suppliers, unit

price of the item/items, when and where to deliver, a purchasing order (PO) number for the

reference of the supplier, and an approval signature from the financial department.

Purchasing could do away with a lot of paper work and contribute to value adding by

making sure that the requisition forms that they issue to the supplier are organized and

easy to read. Searles purchasing department does this by being very specific about the

quantity that they order and by using forms that are consistent and easy for the suppliers to

read. They have also made it easier for the employees to request for items by providing a

requisitioners handbook, a step-by-step guide to filling out forms, company procedures and

contact persons ( 1990).

Financial Approval

This involves the authorization to go ahead with the purchasing commitment. This

will be made easier by the allotment of a space for such purposes in the requisition form.

The persons usually affixing their signature for approval are the finance or the budget

department heads. This process could be made easier if there is a batch grouping for

requisitions. Taking of immediate action in signing the forms contributes to the speed with

which the production (if the request is for raw materials or manufacturing services) and the


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employees (if the request is for office use) perform their respective functions in the firms

structure.

Market Assessment

Once the purchasing officer receives the approved requisition form, an appraisal of

the market should be done, with these following considerations in mind: (1) Is there a

competitive market for the item? ; (2) Is the volume/value of goods required sufficient to

warrant calling for quotations and tenders, and if so, should prices and other details be

obtained by telephone or in writing?; (3) If there is no competitive market, should the sole

supplier be given an immediate order, or can a lower price be negotiated?; (4) Is it

appropriate to call for "Registration of Interest", prior to inviting formal tenders?; (5) Are

suitable period contracts available?; (6) Is there a list of "approved suppliers" for the item, or

is the establishment of an "approved suppliers" list warranted?; (7) Could there be scope

for a bulk purchase? ( 1991) After having attended to such considerations, the purchasing

officer could then proceed to making the purchase decision.

Only through considering the items enumerated above could this process contribute

to value adding. An excellent market assessment could prevent materials wastage, further

delay of delivery and more strategic supplier selection.

Purchase Decision

The purchasing officer needs to determine the purchasing method he or she will use

in acquisition. The principal methods of making a purchase are as follows: (1) tendering; (2)

selective purchase; (3) emergency purchasing; (4) bulk purchasing; (5) period contracts

and (6) indent purchasing. Sometimes, the purchasing officer has not decided yet on whom

to buy from. Decisions can be made through bidding or asking for price quotes from a

range of possible suppliers. This process must be recorded or documented for purposes of

auditing and to justify the reasons for having chosen such and such supplier in case of

subsequent problems. After having picked the purchasing method and the supplier suited

to the firms standards, the officer could proceed to the rest of the acquisition process.

Value added in the purchasing decisions comes in the strategic supplier selection.

Being overly dependent on only a few suppliers could prove disadvantageous to the


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company. If these supplier potions fail to deliver, there will be delay in the production

process, and delay means additional expense on the firms part. Value added can also be

seen in the delivery method the business chooses. Choosing the delivery method which will

best preserve the original state of the items ordered will ensure that materials used in

production is in top condition, which in turn would produce top quality goods or services.

Ordering

The officer in charge of buying materials will then arrange to order from the supplier.

This should be documented, as this will form an agreement between two parties: the buyer

(the organization), and the seller (the supplier). The order contract should expressly reflect

the transactions to be made, like the method of delivery and the terms of payment. All the

legal and other significant details should appear in the documentation. This, then, should be

forwarded to the supplier. The firm should also establish a formal order-tracking system to

ensure the follow-up of orders. The system should include:

Checking with suppliers that delivery dates are still able to be met. If timing is

critical, frequent pre-delivery checks may be necessary;

Documentation which acknowledges part-delivery of orders and allows

follow-up on delivery of the remainder;

A procedure which ensures that suppliers are paid in accordance with

contracted terms. (This double-check will help to maintain good

supplier/purchaser relations);

A record of supplier performance (1991).

In ordering, the purchasing department could add to value by making sure that

correct specifications are indicated in the order contract which will prevent incorrect

delivery. The following-up of orders could also add value by ensuring that the lead time is

used effectively. Processes in production which could be done without the ordered goods

or services should be done while waiting for the delivery to arrive. As such, time is

maximized.

Made By:

Apurv Singh PGFA1108


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