The document provides an analysis of the production process at Sharda Oil Mill, a small-scale mustard oil production facility in India. It describes the raw materials, equipment, production steps, and process layout. It identifies the oil expeller as the bottleneck in the process and discusses ways to optimize the production around this bottleneck, including maintaining a constant supply of raw materials. It also analyzes non-value-added activities and identifies opportunities to reduce waste, such as implementing a visual management system and improving inventory management practices.

1. PGCBM 22 – Group 50
Sharda Oil Mills
Production & Process Analysis
Ravipratap Singh Tomar (2224997-Gurgaon),
Shashank Kumar (2224682-Vadodra),
Vrishali Rajhans (2224164- Borivali),
Ganesh Gopalkrishnan (2224693-Vadodra)
Prof. Rajiv Mishra

2. SHARDA - Mustard Oil Mill
Gohad Distt- Bhind (M.P.)
Introduction:-
Mustard oil can be named among the top choices of the people when it comes to edible oil,
especially in central and Eastern States of India, Bangladesh and Nepal. Only one
byproduct, the solid part (Oil cake or Khalli) is used as an admixture for milk producing
cattle’s food, which helps them to increase volume of milk production. Sharda Oil Mill is
small scale unit produces mustard oil using mustard as raw material and having a byproduct
oil cakes (“Khalli”).
This small plant can be treated as continuous / line plant, which needs very limited number
of processes and limited number of machineries / equipments are used but the processes
are not continuous lets understand it better
Identification under Product MIX
SOM = Sharda Oil Mill

3. History of Sharda oil mill is , they had started the business with a bull working for getting oil
mill , it was called “Kolhu ka bell“
But and he had shifted to purify the oil to , increasing oil capacity 50 kg / day to 1200 Lit/ Day
after investing almost 25 Lakh in 2 yr., where BEP was met in 6 years and now baring the
perpetual output from it, being a low maintenance machine they are able to earn more. This
company will slice for shifting to more Line and subsequently to Continuous. Since the
product type is such that where :Kacchi ghani” is becoming un popular due to heavy and
lesser refined , the type of product can also be limited in the same fashion and moving more
toward make to stock than MTO / ATO as present.
Raw Material:-
As mustard seeds are taken from a much targeted area (close villages) and grain mart
(Galla Mandi), from 1/4th part of Tehsil Gohad (Seed production Area = 140 km2). Hence in
majority, quality of seeds are of under controllable range but since the location of land is
near to Tehsil`s biggest mart, option for superior quality is easy which is done on two sample
quality assessment basis here two samples are taken randomly from one cubic feet (One
Trolley of farmer`s tractor), and checked for yellowness of seed and the moisture content in
seed under field and Lab testing facility.
After Quality assessment the material is measured and loaded in located storage place
(Refer Fig. Plant Layout).

4. Equipments / Machinery:-
We may list the establishment list as:-
Item Description Quantity
Oil Expeller 2
Filter Press (Oil Extractor) 1
Other support equipments like electric As required (having one set of Belt and tool
motors, diesel engine, conveyor belt, box , which are enough to open / pack
complete Oil Expeller / Filter press)
Testing laboratory 1
weighing scales, etc 3 (2 for up to 300 kgs 1 for up to 30 kg)
Man Power 5 (One Skilled another Semi skilled)
1. Plant Layout:-
Actual layout of this plant is as shown:-
Fig 01

5. 2. Production Process:-
1. Raw material testing, purchase, and unloading at Storage area. Unpacking Raw
material / screening for impurity.
2. Transportation of raw material to expeller filtering and packing:
3. Feeding the hopper of Expellers in this process at first time up to 40% oil is extracted
in bottom of expeller which is collected and transported to filter , this filtered part is
called “Kachhi ghani oil” which is blackish in color , some part of it is packed at this
stage (Type 1 product) , along with oil solid flakes are extracted from expeller which
are repeatedly processed from the same hopper 3 times , from which oil is collected
stage wise and sent to filter press (Type 2 Product) and last extract oil cakes are
stored at another place.
4. Type 1, 2 and 3 both are packed in both small (20%) and drum (80%) packing and
stored for sell on the spot (retail) and on demand basis.
5. Waste is 2-3% in terms of residual sediments from Filter and 3-4 % gets spilled while
collection, filling, transporting and 2-3 % at raw material stage due to very small size
of seeds.
3. Process layout:
Fig. 02

6. 4. Process Analysis – Theory of Constrains
1. Identify Bottleneck – Based on above process flow diagram we can very well make
out that the Expeller is the busiest equipment. The same is used quite repetitive
process. The objective of this production process is to produce refined mustered oil.
In the whole process few Byproducts are produced and pulled out of the process. To
get the finished product the Raw material is passed through the Expeller trice. A
minute wasted at this stage will have drastic impact on the process chain.
2. Exploit the bottleneck – Expellers have to be continuously busy. We can also
consider adding another Expeller if possible to enhance the processing time.
3. Subordinate to the bottleneck – All the remaining activities need to to align to the
Expeller process. Maintenance department need to ensure that there is no
breakdown. Need to ensure constant supply to Raw material / Inventory to ensure no
ideal time for Expeller.
4. Elevate the bottleneck – At this stage now we need to process analysis again to
validate the bottleneck. It’s possible that by adding the new Expeller now Filter has
become new bottleneck.
5. Go back to stage 1 – The entire process will be repeated to identify new bottleneck.
5. De Coupling Point:
We can observe following in this product chain / supply chain.
 Product is linked to customer order at retail counter.
 Operations are not customer driven rather they are forecast driven.
 Major inventory is held at Whole seller/dealer and small inventory is kept in factory
for retail selling from the factory itself. We consider major inventory & ignore the
inventory kept in the factory.
 It is Made to Stock type of business
Hence, we conclude that De Coupling point of business is Retailer’s Inventory.

7. DECOUPLING POINT
FLOW OF MATERIAL
Raw Material Production Whole Seller’s Storage Retailer’s Storage Customer
6. PRODUCT POSTPONEMENT
Although, direct redesign of the product manufacturing process is not feasible but following
gives options of doing product postponement. Ways are:
1. Benchmarking
2. Modularity of product.
7. Non Value Added Activities Analysis:
1. At
stage 1-2 , at exit of unpacking area :- Wastage is created at unpacking stage from
where batches are kept in area 1 and 2 , constraint is that bags cannot be moved in

8. between two expellers (due to space), if batch size is directly taken from unpacking area
then will have requirement for additional 2 non skill labor
Mitigation Plan:
Creating smaller batch sized bag / temporary batch, which can be directly stacked at
same area (As at stage 2), this batch needs to be reusable.
Since the investment is low budget where conveyer belt cannot be used / purchased hence
reusable batch / smaller, stackable bags can be stored.
A. More raw material can be pushed / batch (since wastage is saved) hence under
production will be stopped and over consumption (kg/ lit) will also improve.
B. Space can be utilized more storage during low prize material.
2. Since there are less numbers stages between raw materials and output hence safety
and limited movement are not followed. Skill of workmanship can be increased by putting
information diagram and material stacking methodology (As shown in Fig 1 at stage 1 i.e.
arrival storage).
Mitigation Plan:
Posters are to be pasted at:
A. Arrival storage.
B. Between expellers
C. At Oil cake storage.
This will help to do storage / counting and control of inventory at each storage.
3. Since there is only one level of production , hence wastage due to over production shall
not be envisaged
4. The “Focus” of company was to fulfill 80% demand as bulk supply and keeping 20% of
retailers was creating waiting more longer (Avg. 5 Hr) for the same trucks to load Oil
tanks , who dumped raw material (Mustard seeds). But packing of retail and small packet
Was being at the same time.

9. Mitigation Plan :
A. First bulk packing needs to be done then followed by small packing needs to be
done.
A continuous improvement on the same is required to maintain PDCA action criteria.
5. Since Filter area is not the bottleneck, hence plant is underutilized, efficiency of filter is
efficiency of plant hence over discussed parameter needs to be calculated and made
efficient such that everything subordinates filter.

10. Oct-12 Rapid Plant Assessment Rating--Table 1 Rating Considerations Chart 1
No Measure Factors
Customer Customer ratings, quality certifications & ratings, warranty & product liability costs, employee knowledge of external and internal customer
1 requirements, visitor materials & welcome, market share, rate of new product introduction & acceptance
Satisfaction
Safety & environment record, place for everything & everything in its place, cleanliness of operations--exterior & interior, floors, equipment, spills,
Safety, environment,
2 leaks, noise, lighting, paint, dust, air quality, employee dress, restroom conditions, desks & workbench order & cleanliness, degree of "spiffing" for
cleanliness, & order visitors (negative), inventory order, material flow order & cleanliness, color & other coding for safety & order
Operations mission & performance objectives visible; visibility of labeling & coding of product lines, inventory, equipment, & tooling; color coding &
Visual Management differentiation ; visibility of customer identification & ratings; visibility of charts tracking operation's & teams' safety, quality, & productivity, control room
3 showing status of total operation, customer order & order fulfillment visibility, Kanban deployment, inventory count can be made visually, machines &
Deployment
tool labeling--costs, preventive maintenance visibility, product displays, audit results visible
Degree of scheduling to customer order, order process efficiency, product line scheduling at single point, scheduling buckets (each order, hourly, daily,
4 Scheduling system weekly, or monthly), supplier scheduling & delivery, replenishment versus order fulfillment, computer scheduling versus kanban, pull versus push
systems, flow time efficiencies, backroom costs of scheduling, MRP costs, data entry costs
Product line versus shop layout, rolling carts pulled by tractors or by hand or conveyers versus forklifts, travel distances between processes, material
Product & material
5 movement responsibility--process owned or separate material staff, container size (forklift requirement?), containers designed for parts families, single
flows; space use versus multiple docks to minimize material travel, space utilization, goals for space use reduction
WIP levels at each process, WIP in transit in plant, separate stores versus line side storage, number of inventory storage areas, finished product
Inventory & WIP
6 levels, total inventory to sales ratio, process cycle time to flow time ratios, countability of inventory, WIP movemend triggered by computer, material
Levels department or next process, theoretical versus actual flow times
People teamwork, Team problem solving capability & history, employee willingness to talk about customers, products, & company; uniformity of dress; communications &
recognition environment; sales per employee; team meeting areas & performance charts; training investments, educational support, benefit package &
7 skill level, & costs, unionization activity, workforce-management relationship, community support, company-supported activities (picnics, open houses, sports
motivation teams, local involvement, employee knowledge of & support of customers & business, work instructions standards
Preventive maintenance system, setup change times, integrated go-no go quality checks, machine performance data availability, knowledge &
Equipment & tooling
8 utilization of bottleneck processes, process control capability, total asset utilization, operator routine maintenance, maintenance staff & teams, MRO
state & maintenance replenishment efficiency, tool & fixture orderliness, cleanliness, & storage location, equipment improvement policy, equipment technology strategy
Use of common parts, processes, & procedures prototype process, paper transactions required on floor, keyboard entries versus bar coding,
Ability to Manage backroom paperwork & computer transactions costs, matching of data collected with data needed, simplicity & clarity of operations layout, indirect to
9 Complexity & direct labor ratio, support staff to total workforce ratio, overhead cost ratios, commonality of tooling & fixturing, commonality of equipment & tools,
commonality of support software & applications programs across the operation & among sister plants, equipment efficiencies, ability to handle variable
Variability
demand, ability to eliminate controllable variations, ability to smooth demand, ability to handle supply chain, number of suppliers
Number of suppliers, supplier release system--from inventory levels or customer order, supplier certification, sourcing policies--short-term or long-term,
Supply Chain
10 supplier quality ratings, delivery, & productivity objectives & history, new product development responsibility, responsibility for kitting parts, C-stock
Integration replenishment efficiency, supplier material scrap & rework, supplier cost-saving ideas implemented, supplier knowledge of lean
Quality certification, quality process & measurement at each process & for each product, scrap & rework, problem solving process, product & customer
Quality System
11 quality data, quality ratings, new product startup process, continuous improvement environment, degree of focus on customer satisfaction ,
Deployment implementation of best practices, degree operational strategies are linked to corporate strategy, total quality system well-developed & deployed

11. Plant Rapid Plant Assessment Date Oct-12
No Table 2--Assessment Questionnaire Yes/No
1 Are visitors welcomed and given information about plant layout, workforce, customers, and products? YES
2 Are ratings for customer satisfaction and product quality displayed? YES
3 Is the facility safe, clean, orderly, and well lit? Is the air quality good and noise levels low? NO
4 Does a visual labeling system identify and locate inventory, tools, processes, and flow? YES
5 Does everything have its own place, and is everything stored in its place? NO
6 Are up-to-date operational goals and performance measures for those goals prominently posted? NO
7 Are production materials brought to and stored at line side rather than in separate inventory storage areas? NO
8 Are work instructions and product quality specifications visible at all work areas? YES
9 Are updated charts on productivity, quality, safety, and problem solving visible for all teams? NO
10 Can the current state of the operation be viewed from a central control room, on a status board, or on a CRT? NO
11 Are production lines scheduled off a single pacing process with appropriate inventory levels at each stage? NO
12 Is material moved only once as short a distance as possible and in appropriate containers? YES
13 Is the plant laid out in continuous product flow lines rather than in "shops"? YES
14 Are work teams trained, empowered, and involved in problem solving and ongoing improvements? YES
15 Do employees appear committed to continuous improvement? YES
Is a timetable posted for equipment preventive maintenance and continuous improvement of tools and
16 NO
processes?
17 Is there an effective project management process, with cost and timing goals, for new product start-ups? YES
18 Is a supplier certification process--with measures for quality, delivery, and cost performance--displayed? NO
19 Have key product characteristics been identified and fail-safe methods used to forestall propagation of defects? YES
20 Would you buy the products this operation produces? YES
Total number of Yeses 11

12. Rated by:_ Group (VR GG SK RPT) Rapid Plant Assessment Oct-12
Tour Date:______________ Table 1--Rating Sheet Plant:_Sharda Oil Mill
Below Above Best in
Ratings Poor Average Excellent
Average Average Class
No Measure Score 1 3 5 7 9 11 Scores
1 Customer Satisfaction 1,2,20 9 9
Safety, environment,
2 3,4,5,20 5 5
cleanliness, & order
Visual Management
3 2,4,6,7,8,9,10,20 5 5
Deployment
4 Scheduling system 11,20 5 5
Product flow, space use &
5 7,13,12,20 7 7
material movement means
6 Inventory & WIP Levels 7,11,20 3 3
People teamwork, skill
7 6,9,14,15,20 5 5
level, & motivation
Equipment & tooling state
8 16,20 5 5
& maintenance
Ability to Manage
9 8,17,20 9 9
Complexity & Variability
10 Supply Chain Integration 18,20 5 5
Quality System
11 15,17,19,20 7 7
Deployment
Totals 65 6

13. Study of a car engine manufacturing
Engine is the heart of any automobile and when it comes to an engine of a car which is
a vehicle used by millions across the world ,the following parameters are very important
for a car engine manufacturing company
While a study is conducted to identify areas of improvement while manufacturing or
assembly of an engine ,the following parameters are important and needs to look at
 No of components in an engine and optimization ,if possible
 Sources of the components and their cost
 Mettallurgy of construction of each component
 Manufacturing lead time to assemble the engine.
 Quality requirements of the components to ensure long life of the engine
 Cost of manufacturing.
 Min inventory holding.
 Fuel Efficiency and BHP
 Reduction in the no .of parts being sourced
 Optimisation of Vendors for sourcing
 Reducing transportation costs
Normally a Car engine consists of the following components and is being sourced from
various parts of the world which is received in the engine assembly plant ,be it Honda
,Toyota ,Skoda ,Volvo or any other car engines
The car engine manufacturing companies source all the above materials from different
suppliers and assemble it in the plant
These engines are internal combustion engines and has the following components
Cylinder Blocks,Crankcases ,Pistons ,Piston Rings ,Piston pins ,Piston pin locks
,Connecting Rods ,Rod Bearings ,Shims ,Crank Shafts ,Camshafts ,Valve Lifters,Timing
Gears ,Valves ,Engine Bearings,Flywheels ,Cylinder Heads ,Oil Pans ,Manifolds ,Oil
Pumps ,water pumps ,Carburatos,Fand and Gaskets

14. We went through the engine manufacturing operations of Honda Car Engine .
Key information
Annual Production – 2,40,000 engines per annum
 Honda produced their first engine in 1989
 The plant has the capacity to produce 1,000 engines per day
 Only Honda assemble both petrol and diesel engines on the same line
 More than 500 associates work across three different shift patterns
Business Processes
Honda Engine Manufacturing Process
Engine Material High Pr Die
Services Casting
Machining & Engine Assembly
Tooling
Low Pr Die
Casting
Engine Quality
Despatch

15. Business Process
High Pressure Die Casting
This facility produces the cylinder block. Aluminium ingots are loaded into furnaces and
melted. These furnaces are capable of melting 800kg of aluminium an hour and are
unique as they combine both the melt and holding furnace. The dies are then forced
together, at which point molten aluminium is poured into the shot cylinder and fired into
the dies at around 2.7 metres per second. Once casting is complete, the dies open and
the cylinder block is transferred to the inspection platform before being passed to
Machining Machining and Tooling
Machining
Here the block and head cast components undergo various cutting, milling, drilling,
boring, honing and reaming operations. The layout of the Machining Lines is extremely
compact, with Computer Numerically Controlled (CNC) machines achieving consistent
high-precision results. Although the machines have a number of automatic test features,
Honda associates still carry out manual checks at every stage to ensure a consistent
level of quality is maintained.
Tooling
Associates who work in Tooling maintain and control all the specialist cutting tools used
within both head and block machining.
Engine Material Services
Engine Material Service (EMS) receives component parts from all over the world. All
parts for die-cast, machining and engine assembly are managed using ‘first in first out’
principles.
Low Pressure Die Casting
This facility produces the cylinder block. Aluminium ingots are loaded into furnaces and
melted. These furnaces are capable of melting 800kg of aluminium an hour and are
unique as they combine both the melt and holding furnace. The dies are then forced
together, at which point molten aluminium is poured into the shot cylinder and fired into
the dies at around 2.7 metres per second. Once casting is complete, the dies open and
the cylinder block is transferred to the inspection platform before being passed to
Machining

16. Engine Assembly
This is where the machined engine blocks, cylinder heads and clutch and transmission
cases meet with the other engine components for the final engine assembly process.
First the engine blocks, clutch and cylinder heads are sub-assembled on separate lines.
At this stage the pistons, crankshafts, con rods and oil pan are installed into the block
and the springs and valves are built into the cylinder heads. Once the sub-assembly
process is complete, the modules are joined together to form the complete engine.
The engine then undergoes a series of in-built process tests before being transferred by
overhead conveyor to the Engine Control Centre. This houses a High Speed Server
with a fully automated engine storage and retrieval facility
Engine Quality
The Engine Quality (EQ) Department's role is to support in the design and development
of engine components right from initial concept to mass production. EQ also supports
the Die Cast, Machining and Engine Assembly sections with process confirmation and
calibration, as well as the maintenance of all inspection, measuring and test equipment.
In addition, EQ is also responsible for four onsite dynamometers which carry out static,
dynamic and endurance testing to quality assure all engine and transmission
components.
Improvement Areas
The following areas could be focused
 Performance Productivity –no of hours /engine
 Layout –Space required per engine assembly
 Inventories
 Workforce : no of persons working per engine
 Automation
 Reduce WIP
 No of stations in an operation
Suggestions
1. Form Cells
2. Sequential Operations
3. Decouple operator from machine
4. Reduce downtime during change over increases flexibility
5. Level and balance
6. Propagate low WIP to vendors

17. 7. Reduce vendors
8. Make ontime performance part of expectation
9. Make it a pull systemSixSigma