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Om term paper

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  • 1. October 30, 2012 [PLANT LAYOUT OF BISLERI] OPERATIONS MANAGEMENTTERM PAPER ON PLANT LAYOUT OF BISLERI K.NADIYA 1PI11MBA65 SECTION’B’ 1
  • 2. October 30, 2012 [PLANT LAYOUT OF BISLERI] INTRODUCTIONABOUT THE INDUSTRY Corporate control over water and water distribution in India is growing rapidly: the packaged water business is worth Rs 1,000 crore, and its growing at a huge 40-50% annually. Around 1,200 bottling plants and 100 brands of packaged water across the country are battling over the market, overdrawing groundwater, and robbing local communities of their water resources and livelihoods Bottled water, one of Indias fastest-growing industries, is a business built on the foundation of bad governance, inequity and blatant exploitation. Hard to believe, but the evidence is becoming clearer. According to UNDP estimates, around 1.2 billion people worldwide lack access to clean drinking water. Today, there are more people in the worlds hospitals suffering from waterborne diseases than any other ailment. Some 6,000 children die of such diseases every day. Providing safe drinking water is the responsibility of the state. That they are failing miserably is evident from the fact that over 1,600 Indians reportedly die every day because of waterborne diseases. Despite these astounding figures, the Indian state has literally washed its hands of the responsibility of providing clean drinking water to its citizens. 2
  • 3. October 30, 2012 [PLANT LAYOUT OF BISLERI]When one in six people globally lives without access to clean drinkingwater, does the answer lie in high-tech water purifiers and bottled waterthats out of reach for a majority of the Indian population?Multinational corporations would have us believe so. And the reason is nothard to find: along with imported water treatment technology likeactivated carbon and ultra violet (UV) disinfection (Aqua guard), reverseosmosis (Reviva) and resins (Zero-B), the water treatment market isestimated to be worth around Rs 700 crore. The bottled water industry isestimated to be a whopping Rs 1,000 crore business. Ithas grown at a rate of40-50% annually over the past four years or so.According to the Bureau of Indian Standards, there are 1,200 bottled waterfactories all over India (of which 600 are in the state of Tamil Nadu).Corporate control over water and water distribution in India is rapidlygrowing. As globalization opens up opportunities for private players,investing in water and/or manipulating water scarcity makes increasinglygood business sense for corporations.Over 100 brands are battling over the bottled water market, hard-selling theirproducts in every way possible -- better margins to dealers, aggressiveadvertising, and catchy slogans.The real boost to bottled water came in the early- to mid-1980s with thegrowth of PVC packaging and, later, PET bottles.3
  • 4. October 30, 2012 [PLANT LAYOUT OF BISLERI]ABOUT BISLERI: Mineral Water under the name „Bisleri‟ was first launched in Mumbai in glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles under the brand name Bisleri. Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turnover has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently Bisleri has 8 plants & 11 franchisees all over India. Their presence covers the entire span of India. The company is planning to set up four more plants. Bisleri commands a 65% market share of the organized market. Overwhelming popularity of Bisleri & the fact that it has pioneered bottled water in India, has made it synonymous to Mineral water and has made it a household name. When you think of bottled water, you think Bisleri. 4
  • 5. October 30, 2012 [PLANT LAYOUT OF BISLERI]LITERATURE REVIEW 1. “According to Riggs, “the overall objective of plant layout is to design a physical arrangement that most economically meets the required output – quantity and quality. ” (Reference: Plant location and layout: Abha kumar) 2. Plant layout refers to the arrangement of physical facilities such as machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product.( Reference :”Web Su Kat “ ) 3. The plant layout is a very critical part of running an efficient and cost effective business. All work areas, production lines, material storage facilities, etc. should be designed to perform to the highest rate and the corresponding shortest cycle time. When designing a plant layout it is necessary to take into account all the functions within the business. The design must include not only the needs for the present business levels but should also have provisions for future expansion. This is included to avoid frequent and costly changes to the design as demand increases. (Reference :ceoadvice.com) 5
  • 6. October 30, 2012 [PLANT LAYOUT OF BISLERI]Departments in M/s Parle Bisleri Pvt. Ltd.“M/S Parle Bisleri Pvt. Ltd.” It is a medium scale company and it manufacturesand sells “Packaged Drinking Water”The different departments of this company are: -1. Filler Department: -This is the plant in which the bottles are filled and packed under strict levels ofhygiene and safety as per the EU norms.2. Plastics Department: - Caps Section Preforms SectionThis is the Department where pet material is processed to make preforms using 6Ekou injection moulding machine of 180 and 330 tonnes as per the requirementsof the preform.3. Water Treatment Plant: -Over here the raw water from the bore wells is treated in several stages before it isfilled thus making it very pure for human use.4. Blowing Department: -Over here the preforms are blown into bottles. This department has various manualand fully automatic stretch blow moulding machines. 6
  • 7. October 30, 2012 [PLANT LAYOUT OF BISLERI]5. Water Testing Laboratory: -The water-testing lab ensures that the water safety standards are maintained as perthe BIS and EU norms.6. HORAI Department (Grinding Department): -All rejected bottles, caps, jars and lumps of plastic material are sent over here forgrinding in order to re-use it.Before it can be grinded it is very carefully segregated in different groups.They also buy plastic bottles from outside and grind them for resale. It is a fullyautomatic plant.7. Stores Department: -All the stock of finished, semi-finished goods are stored over here and aredispatched as per the orders.Up to 50 tonnes of stock are dispatched in a day.Plant LocationEvery entrepreneur is faced with the problem of deciding the best site for locationof his plant or factory. What is plant location?Plant location refers to the choice of region and the selection of a particular site forsetting up a business or factory.But the choice is made only after considering cost and benefits of differentalternative sites.It is a strategic decision that cannot be changed once taken.If at all changed only at considerable loss, the location should be selected as per itsown requirements and circumstances. 7
  • 8. October 30, 2012 [PLANT LAYOUT OF BISLERI]Each individual plant is a case in itself. Businessman should try to make anattempt for optimum or ideal location. What is an ideal location?An ideal location is one where the cost of the product is kept to minimum, with alarge market share, the least risk and the maximum social gain.It is the place of maximum net advantage or which gives lowest unit cost ofproduction and distribution.For achieving this objective, small-scale entrepreneur can make useof locational analysis for this purpose.Analysis of Bisleri on the location of its FactoryAnalysis of a factory is carried on the basis of following stepsA) Deciding on domestic or international locationParle Bisleri Pvt, Ltd is a national company therefore the plant will be locatedwithin the country.B) Selection of Region1) Availability of Raw Material: -a) The main raw material for any bottling plant is water the location that the hasbeen selected has 4 bore wells on site enough to supply water for whole year roundsuch that the company does not have rely on BWSSB for its water.b) The other raw material it requires is HDPE, LLDPE for the production of caps.PET for the production of bottles, the granules of these are easily available becauseall the polymer manufacturing companies i.e. RELIANCE and IPCL havedistributors in Bangalore2) Nearness to the market: -Bangalore is one of the biggest cities in India and the market in Bangalore is verylarge due to the fact the people here are more hygiene conscious. The factory is 8
  • 9. October 30, 2012 [PLANT LAYOUT OF BISLERI]located on the main road of the city therefore making it easier for it to transport thefinished goods to the different parts of the city as well out station as well as ourstate.3) Availability of power: -There is no power shortage as Bangalore always has very less load shedding.4) Transport facility: -Bisleri has a fleet of trucks to meet the deliver needs of the company they Eichertrucks and they also transport the finished goods and semi – finished goods out ofthe state as well as within the city. The fleet is of about 10 trucks.5) Suitability of Climate: -Bisleri is located in Bangalore which is in the temperate zone therefore thetemperature are moderate.C) Selection Of community1) Availability of labor : -Parle Bisleri Pvt. Ltd. is located in the city of Bangalore which is a fast developingcity it has abundant skilled, semi-skilled and manual or unskilled labor.2) Civic Amenities for workers: -Parle Bisleri is located in the Bangalore city and it is connected to every part of thecity and Bangalore has excellent public transport it also has excellent canteenfacilities for workers which give food to the workers at a subsidized rate. 9
  • 10. October 30, 2012 [PLANT LAYOUT OF BISLERI]Plant LayoutThe subject plant layout refers to the arrangement of machinery, equipment andother industrial facilities such as receiving and shipping departments, toolrooms, maintenance rooms and employee amenities – for the purpose ofachieving the quickest and smoothest production at the least cost.Bisleri plant at has two different plants where the complete production takes place.In the one plant the cap and the bottle preforms are manufactured and the otherplant has the place for preforms to be blown into bottles and the filling of thebottles is done.This building also has the purification process of the water which has to be filled.Analysis Of The Layout The factory has wide doors leading to a raised platform. There are small cranes which are used to pick up the lot of raw materials such as pre-forms and caps which are brought by trucks. They are then stored in an accessible place so that they can be taken for further processing. In order to facilitate the transporting of the boxes from one plant to another there are medium trolleys which have to be manually pushed. Therefore sloped entrance and exits are provided. The warehouse where the finished goods are stored is located right next to the vehicle pool in order to avoid wastage. 10
  • 11. October 30, 2012 [PLANT LAYOUT OF BISLERI] PLANT LAYOUT OF BISLERI11
  • 12. October 30, 2012 [PLANT LAYOUT OF BISLERI]Analysis of Bisleri on the layout of its FactoryA) Materials: -Materials include all kinds‟ materials that are needed in the process ofmanufacturing the product.1) In the first place there are wide doors, which open to a raised platform with asmall crane which can be used to remove the sacks of raw material which arrive bytruck and the sack are stored in an accessible place next to the crane where it isstored easily.2) The sacks of raw material are removed and processed to form the caps and thepreforms respectively.3) The caps and the bottle preforms are packed in cardboard boxes and transportedto the other plant for finishing the product.4) In order to facilitate the transporting of the boxes from one plant to another thereare medium trolleys have to be manually pushed therefore sloped entrance andexits are provided.5) The godown where the finished goods are stored is located right next to thevehicle pool in order to reduce the time wasted in transporting to the trucks.B) Type of Industry: -The type of industry and the method of the manufacturing process exercisea significant influence on plant layout.The different types of industries are: -1) Synthetic2) Analytical 12
  • 13. October 30, 2012 [PLANT LAYOUT OF BISLERI]3) Conditioning, and4) Extractive.Bisleri falls under the category of conditioning industry. A conditioning industryis industry which is involved in the change of form or the physical properties of asubstance in this case water.Each of the above industries can be further classified into: -1) Intermittent industry, and2) Continuous industry.Bisleri falls under the category of a continuous industry.A continuous industry is an industry that manufactures a product uninterrupted ofstandard size.C) Nature of plant location: -The site selected for the location of a plant influences its layout in more ways thanone.First, the size and the terrain of the site determine the types of building which inturn, influences the layout.Secondly, the location of the plant determines the mode of transportation,depending upon the distances from the source of raw materials and marketto the plant.The terrain of the place where it is located is that it is in step form i.e. the fullplot is not at the same level, this helps in the transportation of semi-finishedproduct to be transported to the filler.D) Machinery: -The type of product, the volume of its production, the type of process andmanagement policy determines the size and type of the machinery to be 13
  • 14. October 30, 2012 [PLANT LAYOUT OF BISLERI]installed which, in turn influences the plant layout. Also the fixed and stationaryparts of the machines should also be taken into considerations while designing theplant layout.In Parle Bisleri Pvt. Ltd. the machines are laid with many considerations such as: -1) There is enough space for the repair and maintenance of the machinery can bedone easily.2) The machines are placed in such a way that there is enough place for movingand relocation of the machines3) There is enough space for the workers to move about the machines and workcomfortably.E) Workers: -The layout designer should also consider the type, position and requirementsof employees.If women workers are employed, the layout must be planned after keeping inmind their particular requirements.The position of employees, that is whether they remain stationary or moving,also influences the layout.Parle Bisleri Pvt. Ltd. has provided its workers with many facilities such as: -1) Canteen conveniently located and providing hygienic food at concessional rates.2) Toilets for men and women conveniently located and of sufficient numbermaintained in hygienic conditions.3) Due to the location of the plant it is very convenient for all the workers to reachwork. 14
  • 15. October 30, 2012 [PLANT LAYOUT OF BISLERI]Principles of Plant LayoutThe factors discussed above, influence the choice of a particular type of layout.While accepting the selected layout, the layout engineer should be guided bycertain principles.The layout selected in conformity with layout principles should be an ideal one.These principles are: -1) The principle of minimum travel2) The principle of sequence3) The principle of usage.4) The principle of compactness5) The principle of safety and satisfaction6) The principle of flexibility7) The principle of minimum investmentIn Parle Bisleri plant follows two principles: -1) The principle of minimum travel2) The principle of sequenceThe principle of minimum travel: -Men and materials should travel the shortest distance between operations so as towaste labor and time and minimize the cost of materials handling. 15
  • 16. October 30, 2012 [PLANT LAYOUT OF BISLERI]In the Bisleri plant the machines are integrated in such a way that the Rawmaterials, semi finished product and finished product have very less distance totravel therefore less lead time therefore the costs are reduced.The principle of sequence: -Machinery and operations should be arranged in a sequential order.This principle is best achieved in product layout, and efforts should be made tohave it adopted in the process layout.In the Bisleri plant right from producing the caps and bottles preforms to treatingthe water to making the bottles and filling and capping it all the machinesare arranged in a sequence therefore saving time and cost on material handlingequipment.ABC AnalysisOne of the widely used techniques for control of inventory is the ABC (alwaysbetter Control) analysis. The objective of ABC control is to vary the expenses associated with maintaining appropriate control according to the potential saving associated with a proper level of such control. The ABC approach is a means of categorizing inventory items into three classes „A‟, “B” and “C” according to the potential amount to be controlled. Once the inventory is classified, we have a form base for deciding where we will put our effort. 16
  • 17. October 30, 2012 [PLANT LAYOUT OF BISLERI] Logically we expect to maintain strong controls over the “A”, items taking whatever special actions needed to maintain availability of these items and hold stocks at the lowest possible levels consistent with meeting demands. At the other end of the scale, we cannot afford the expenses of rigid controls, frequent ordering and expediting, because of the low amounts in this area. Thus with the “C” group, we may maintain somewhat higher safety stocks, order more months of supply, expect lower levels of customer services or all the three.The steps to be followed for developing ABC analysis: -1) List each item carried in inventory by number or some other designation.2) Determine the annual volume of usage and Rupee value of each item.3) Multiply each items annual volume usage by its rupee value.4) Compute each items percentage of the total inventory in terms of annual usagein Rupees.5) Select the top 10% of all items which have the highest rupee % and classifythem as “A” items.6) Select the next 20% of all items next highest Rupee percentages and designatethem “B” items.7) The next 70% of all items with the lowest rupee percentage are “C” items. 17
  • 18. October 30, 2012 [PLANT LAYOUT OF BISLERI] ABC ANALYSIS OF BISLERI’S INVENTORY18
  • 19. October 30, 2012 [PLANT LAYOUT OF BISLERI]ConclusionIn conclusion it can be inferred that production management is veryimportant in today‟s competitive world where cost cutting is a norm rather thanexception.Production management provides a science for effective profit maximization andoptimum resources utilization.Bisleri who has been in the past been facing tough competition from the otherbrands has adopted production management in a big way in order to maintain itslead in the packaged drinking water market.By this project we have tried to highlight some of the measure taken by Bisleri inorder to improve its production processes and to show the significance and thebenefits of production management in today‟s globalised market. 19

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