Naman shrivastava tata_project_report

Project Report on
Capability Study through Sequence of Operations in
the Fashion Leather Unit
Of

Tata International Exports, Dewas (M.P.)
For the partial fulfil ment of full time 2 year MBA
fulfillment MBA-
International Business from

Amity International Business School

Naman Shrivastava
MBA (IB), 2011
2011-13

1

Table of Contents- Page Number

I. Acknowledgement 2

II. Executive Summary 3

III. Introduction and Sequence of Operations 4

IV. Analysis of 1st quarter 9

• Summary of 1st quarter

V. Analysis of 2nd quarter 18

• Summary of 2nd quarter

VI. Analysis of 3rd quarter 27

• Summary of 3rd quarter

VII. Analysis of 4th quarter 36

• Summary of 4th quarter

VIII. Yearly Operations 45

IX. Conclusion and Recommendation 47

X. Bibliography 48

2

Acknowledgement

For this training of mine from TATA International, Finished Leather
Manufacturing Unit Dewas I am deeply indebted to Mr. Sandeep Singh,
Production Head, without the guidance of whom this training would not be
possible.

I am indebted to Mr. Sameer Tungare and Mr. Sanjay Reghe (HR), Mr. Rajesh
Jain(Chemical Planning), Mr. Bala Subramaniam (RM & Shaving),Mr. Sanjeev
Gupta (Dye House), Mr. Sardar Singh Verma (Setting Yard), Mr. Rishabh
Chauhan (Crust Yard) and Mr. Pawan Vishal Yadav (Finishng Yard) and Mr.
Shankar Bhattacharya(Ware House), (Yard Managers) who guided me about
the factory operations . I also extend my regards to whole the staff of Tata
International who were always helpful and supportive.

I also thank my teachers who taught me in my first year and me capable for
pursuing this training.

I am also grateful to my family and all my friends who were with me in my
training both in good and hard times. Without them this training would have
been incomplete.

- Naman Shrivastava

3

Executive Summary-
The project dealt with the study of sequence of operations that together form the entire
process of finished leather manufacturing. The study was conducted at the Tata International
Limited at Dewas, (M.P.).

The second aspect of the project was to study the productivity of various departments viz.
Raw Material, Shaving, Dyeing, Setting and Finishing. The productivity was studied on the
basis of production and dispatch report of the previous financial year 2011-12 that concluded
in March 2012.

1. The quarterly study of the production was done using statistical tool of Minitab. The
capability study yielded the following outcomes-
2. The 1st and the 3rd quarter are the best performers throughout the year.
3. The productivity of the company is facing problems as the production is unable to
cross the 40% mark.
4. Introduction of better suppliers and training of workers is a necessity.

The operations are found in synchronization with other but are not to the appropriate mark.
Thus it is essential for the company to take some steps for the betterment of performance and
productivity of the finished leather.

4

Introduction and Sequence of Operations-

The entire process of leather manufacturing is divided in five major operations-

Raw Material Processing
Shaving
Dyeing
Crusting
Finishing

After going through these processes the raw hide from animal is ready to be converted to
products like shoes, purses, wallets etc. Each operation is a long and time consuming process
where each step is carefully planned and executed.

Each department is headed by a yard manager who is under the production head. The
departments perform various tasks which constitute entire leather manufacturing. The various
operations under each yard listed as follows-

Raw Material Department-
They have the main job of issuing the raw material also known as Wet Blue to the
shaving department. The department is the root of the entire operations as it provides
the base to work upon.
Shaving Department-
This is the next department in the sequence of operations. The main operations that
take place in this department are-
a. Wet Buffing
b. Sammying
c. Splitting

The material from here is then transferred to the next department of Dye House.

Dye House-
It has two types of drums-
a. Wooden Drums- Fully manually operated. Chemicals fed through door and
axle. Less efficient compared to steel drums. Speed control is also difficult.
b. Steel Drums- Automatic, adjustments of pH, temperature and time all
possible in an automated manner. Also the speed and system control is easy.
5

The processes that take place in Dye House are-

a. Wet Back
b. Rechroming
c. Neutralization
d. Re-tanning
e. Dyeing
f. Fat Liquoring
g. Fixing

Setting and Crust Yard-
Some of the operations that take place here are as follows-
1. Sammying
2. Flesh Set
3. Trimming
4. Grain Setting and
5. Drying

After these processes are done with the leather is then ready to be shifted to the Crust
Yard department. The crust yard operations are as follows-

1. Conditioning- Water Spray Treatment
2. Humidity Treatment
3. Molissa Machine for Flattening and softening
4. Slow Comb machine for loosening at backbone and neck region of skin
5. Toggling
6. Edge Trimming for smooth edges
7. Buffing and Snuffing for grade improvement
8. Inspection

After this the leather is transferred to Finishing Yard. This is the last and final treatment of
leather before it is stored in the warehouse and made available for shipment.

6

Finishing Yard-
Here the leather undergoes the final treatment. It is imperative that the department has
least errors as the final touching takes place here. The changes that are to be made if
needed are to be made very precisely. The operations of “Finishing Yard” are as
follows-
1. Spray Flesh Coat
2. Wax Padding/ Auto Spray for color
3. Ironing
o Rotopia
o Plain Plate
o Hydraulic Press
o Sand Blast
4. Molissa if needed
5. Inspection and ready for warehousing

The production and capability study of each department was done using data of daily
production and dispatch report obtained from the Tata International production floor. The
analysis was done using the statistical tool of Minitab.

Some of the terms used in Minitab are as follows-

1. Ppk Value- The value by back end of Minitab which indicates the shift of the
process form the set target. It can be both positive and negative. Signs indicating
the process shift in either of the directions.
2. LSL- “Lower Specification Limit”. It is the manually entered value for the
minimum requirement of production from a process.
3. Target- It is the set minimum value of the production from each department. In
this case the LSL and the Target are the same.
4. Spread- It is the variation in the outcomes of the process that determine the
severity of the problem. More the spread more is the variation and more the
process needs attention.
5. Observed Performance- It is the performance calculated according to the data
fed to the software of Minitab.

7

6. Exp. Overall performance- The performance that is likely to be happening if no
unassignable causes enter the study. It is calculated as percentage of probability.
7. Unassignable Causes- Causes that cause the hindrance in the process and can not
be accounted for.
8. Confidence- The degree of certainty with which a result can be presented or
evaluated. Higher the confidence less the number of variables in the study and
more is the accuracy.
9. Box-Cox Transformation- The capability analysis in the Minitab software
requires that the data under study is normal i.e. it follows the normal distribution
curve. If not then it provides a tool called Box Cox transformation to convert the
data to normal data.
It changes the values of original data to new normal values using the Optimal
Lambda Value (λ). It can also result in some value below zero and some above
the set target value. It generates an new optimal target value and thus the graph
obtained remains at par with the non transformed data.

8

The project dealt with the bottlenecks of the operations that led to reduced production or
delayed delivery. The operational data for each department was made available by the
company for analysis through the statistical tool of Minitab. The study of the operations for
bottlenecks was done in the following order-

Procure the data of monthly production of each department

Division of the data into four quarters of 3 month each

Normalization of quarterly data for Minitab analysis

Performing the “Capability Analysis” of the process of each operation

Interpretation of result obtained

Analysis of data for next quarter

Interpretation and comparison with previous quarter

Analysis for all quarters and performing a annual analysis

Interpretation of final outcome

Recommendations and Conclusions

9

Analysis of First Quarter (April 2011- June 2011)-
During this quarter the findings for each department are summarized below.


Interpretation of Graph-
The graph is made by a sample of N=84. The target of the raw material department is set at
1.4 for each day (1.4 lakh sq ft). The Lower Specification Limit (LSL) and the target here
are the same as some inventory is needed and more than target production will not hurt. The
following deductions can be made-
1. The process is not centered as shown by the Ppk Value of -0.24. Majority of the times
1.2 lakh sq ft is the achieved value.
2. The deduction can be made with 95% confidence level that 75% times the target of 1.4
lakh sq ft is not achieved which can be attributed to various factors.
3. It can be said with 95% confidence that if the same conditions prevail and no
unassignable causes enter the study the performance will reach to a stage where 76.14%
of the times the target is not met.

10

Shaving Department-
This is the next department in the sequence of operations for leather processing.

1. The process is not centered as shown by the Ppk Value of -0.20. Majority of the times
1.2 lakh sq ft is the achieved value.
2. The deduction can be made with 95% confidence level that 78.57% times the target of
1.4 lakh sq ft is not achieved which can be attributed to various factors one of them
being shortage of material.
of the times the target is not met. This indicates that the process of shaving has shown
steady improvement in the months of the quarters from April to June 2011.
4. It can be inferred that though the processes of RM and Shaving are not centered on
target both are very stable. As seen from the previous graph1.2 lakh sq ft is the issued
raw material and same is the outcome of shaving majority of the times. Thus both are
stable.

11

Dye House Department

1. The process is centered as shown by the Ppk Value of 0.00. Majority of the times target
of 1.4 lakh sq ft is the achieved value.
1.4 lakh sq ft is not achieved which can be attributed to various factors one of them
being shortage of material.
of the times the target is not met. This indicates that the process of dyeing has shown
steady improvement in the months of the quarters from April to June 2011.
4. The target achieving capacity of the dye house is high. Almost 50% of the times the
target is achieved.
5. The process is stable and in synchronization with the last two processes. It can be said
to be a better process than the above two.

12

Setting Yard-

The process is not centered as shown by the Ppk Value of -0.17. Majority of the times
target of 1.5 lakh sq ft is not achieved.
The deduction can be made with 95% confidence level that 77.38% times the target of
1.5 lakh sq ft is not achieved which can be attributed to various factors few being
• Type of material to be set i.e. cow/goat/sheep skin
• Addition of extra steps in the skin processing according to customer
requirement. E.g. Vacuum treatment of the goat skin generally not needed done
to suit customer.
• Time consuming processes.
• Absenteeism
It can be said with 95% confidence that if the same conditions prevail and no
unassignable causes enter the study the performance will reach to a stage where
69.62% of the times the daily target is not met.

13

Crust Yard-

1. The data needed to be transformed to normal data using a method of Box-Cox
Transformation in Minitab.
2. The process is slightly off centered as shown by the Ppk Value of -0.13. Few of the
times target of 1.5 lakh sq ft is not achieved.
1.5 lakh sq ft is not achieved which can be attributed to various factors few being-
• Type of material needed to be crusted.
• Machine suited according to skin type and combine order cause disorder.
• Absenteeism among workers
65.44% of the times the daily target is not met. This indicates that the processes of
crusting had shown improvement in the months of the quarters from April to June
2011.

14

Finishing Yard

Transformation in Minitab.
• Type of material needed to be finished.
• Multiple times the same operation as final product is to be matched in every
aspect to the sample bought by the customer.
68.66% of the times the daily target is not met. This indicates that the processes of
crusting had shown improvement in the months of the quarters from April to June
2011.

15

Ware House

Transformation in Minitab. The N value has changed to 77.
• Material not ready to be warehoused.
• Sorting and inspection before warehousing not done.
64.85% of the times the daily target is not met.

16

Summary of 1st Quarter
When the entire 1st quarter is seen as a big picture the following deductions can be made-
1. The performance of the departments is not up to daily targets. Yet judging by the size
of the organization the overall monthly targets are achieved by increasing the shifts of
workers or doing overtime.
2. The department of “Dye House” is the best performer in this quarter with least
deviation from the target and maximum target achieving capability.
3. The departments of “Shaving”, “Raw Material” and “Setting” are ones with
maximum variation and thus need maximum attention.

1st Quarter Graph of all the Departments

17

1. The target value of each month is 39.2 lakh sq ft. (1.4* 28 working days=39.2 lakh sq
ft)
2. Crust Yard & Dye House are the best performers. They achieve 80% of the target
for the quarter. Also the processes of each are most on target as seen by their mean
value of 39.65 and 39.05 respectively.
3. The spread of the process is max for RM closely followed by Shaving and Setting.
The higher the spread the higher the variation and thus more are the chances that
cause of the problem lies somewhere in these processes.
4. Raw Material Department is seen here as the least performing but that has been
attributed to reasons like-
a. Lack of Orders from Marketing
b. Inventory clearing of the previous year and thus no supply of the raw material
from the suppliers.
c. Lack of demanded raw material from the supplier.

18

Analysis of Second Quarter (July 2011- September 2011)
The findings of this quarter for each department are summarized below.

Raw Material Department


The graph is made by a sample of N=82. The target of the raw material department is set at
1.4 for each day (1.4 lakh sq ft). The Lower Specification Limit (LSL) and the target here
are the same as some inventory is needed and more than target production will not hurt. The
following deductions can be made-
1. Compared to last quarter the capability has gone down. Ppk Value has shifted from -
0.24 to -0.40 which indicates that the process has shifted further off center.
1.4 lakh sq ft is not achieved.
of the times the target is not met.
The incapability is a grave danger as all the following processes are directly related to
RM.

19

Shaving Department


5. The process is not centered as shown by the Ppk Value of -0.35. Compared to previous
quarter the process has shifted more in the negative direction. Majority of the times 0.9
lakh sq ft is the achieved value.
1.4 lakh sq ft is not achieved.
of the times the target is not met. This indicates that the process of shaving has shown
downfall from previous quarter but is steadily improving through the quarter.
8. It can be inferred that though the processes of RM and Shaving are not centered on
target both are very stable. As seen from the previous graph 0.9 lakh sq ft is the issued
raw material and same is the outcome of shaving majority of the times. Thus both are
stable.

20

Dye House Department-


1. The most capable process of the previous quarter has also shifted to a Ppk value of -
0.21 showing that though the target of 1.4 is achieved maximum times it is less
compared to last quarter and thus the process has shown downfall.
of the times the target is not met compared to current performance of 74.39%.
3. When compared to the above two processes the dye house operations are still on the
higher capability.
4. It can also be deducted that the process of dye house can cover up to some level the bad
performances of the RM and Shaving department.

21

Setting Yard


1. Compared to the previous quarter the Ppk Value has gone down to -0.32. This
indicates a negative shift in the process of setting from the previous quarter.
2. The current performance of 86.59% will eventually go to 82.79% if no unexplained
reasons enter the study.
3. The main reason for the low performance is that the quarter is in the months of rains
and the drying of material is not easily possible which is the most requisite step is in the
setting process.
4. The two other processes of setting “Slow Combing” and “Molissa Machine” cannot be
done without proper drying.
5. Majority of the times the achieved value from the setting yard is that of 1.25 lakh sq ft
per day.

22

Crust Yard-


1. Compared to last quarter the performance of the crust yard has gone down. In the earlier
quarter the process was more centered which has now gone down as indicated by the
Ppk value of -0.31 in this quarter.
2. The processes of “Setting” and “Crusting” are in sync. The maximum output of both is
around 1.25 lakh sq ft.
3. Here the observed performance of 88.10% not achieving can reach to 82.47% if no
additional factors come into study.
4. The performance downfall can be attributed to some reasons like time increment in the
operations of the crust yard due to rains.

23

Finishing Yard-


1. The data had to be transformed using “Box-Cox Transformation” for making it
normal and developing a capability graph. The new target value here becomes to 1.22
lakh sq ft.
2. The process is off center indicated by the Ppk value of -0.26 which is below from
previous quarter where it was -0.16
3. If no other variables enter the study then the performance will improve in not achieving
from 80.49% to 78.49%. Thus through the quarter the process has improvement.
4. The process is also not in synchronization with the crust yard operations as the majority
output here is 1 lakh sq ft per day whereas the crust yard provides the material for
finishing at 1.2 lakh sq ft per day. The reasons being the same as for the first quarter.

24

Ware House -


1. The data had to be transformed to obtain a normalized data for capability analysis.
2. Compared to the previous quarter the Ppk Value has gone from -0.13 in further
negative direction to -0.16 which tells us that process has shown downfall compared to
the previous quarter.
3. The process if does not encounter any unexpected variable is bound to degrade further.
Its current performance is that 67.50% of the time target is not achieved while this can
reach to 68.79%.
4. The process further degrades the performance of the crust yard as the majority
outcomes here are 0.8 lakh sq ft per day.

25

Summary of 2nd Quarter-

2nd Quarter Graph of Each Department

26

2nd Quarter Graph of All Departments

1. The performance of this quarter is poorer compared to the previous one. Even the most
stable processes of previous quarter have faced troubles in maintaining the same
performance in this quarter.
2. The “Crust Yard” achieved maximum percentage of target for the quarter with almost
70%.
While “Shaving” achieved least of the percentage of the target with value even less than
30%.
3. The spread of the RM has improved compared to last quarter but that of shaving has
increased further. It indicates that though RM and Shaving both are problematic areas
the shaving is major cause of concern in this quarter.
4. Crust yard has minimum spread which shows that process is stable as well as well
managed.

27

Analysis of Third Quarter-(October 2011-December 2011)



1. The Ppk Value of -0.37 is better compared to previous value of -0.40. This shows that
the process has shown improvement from previous quarter.
2. It can be said with 95% confidence that 86.42% of the times the target value of 1.4 lakh
sq ft per day is not achieved
3. This percentage is expected to go higher to 86.81% from the current value of 86.42% if
there are no new variables in the study.
4. Majority of the times 1.1 lakh sq ft is the achieved value by the RM department.

28

Shaving Department-


1. Compared to previous quarter there is a huge betterment in the Shaving process. This is
supported by the Ppk Value which has improved from -0.35 in previous quarter to -
0.23 in the current quarter.
2. The process is in synchronization with the RM as majority of times the output equals
that of issue from RM of 1.1 to 1.2 lakh sq ft.
3. In the quarter the process has shown improvement. If no variables enter the study then it
is expected that the performance will reach when 75.65% of the times the target is not
achieved compared to current condition where 81.01% times the target is not achieved.

29

Dye House Department-


1. The Ppk value has improved from -0.21 in previous quarter to -0.07 indicating that
process has improved drastically from previous quarter.
2. In the current process capability it can be said with 95% confidence that 59.26% of the
times the target is not achieved. Compared to other departments it is very low or
negligible and thus dye house can be said to be a more capable process than the others.
3. The process is able to match the target in remainder of the process as majority of daily
outcome is 1.4 lakh sq ft.

30

Setting Yard-


1. The data had to be transformed using the Box Cox Transformation method to normalize
it for the capability study. After the transformation the new target value is set at 1.2 lakh
sq ft
2. The Ppk Value of -0.19 is much better compared to previous value of -0.32 indicating
that the process has shown significant improvement over the quarter.
3. Also the percentage of times that the target is not achieved has significantly reduced
from 86% in last quarter to 79.52% in the current quarter.
4. Majority of the times the output of the setting yard is at 1.1 lakh sq ft per day which is
below the productivity of previous department of Dye House. This indicates that in the
long run the Setting yard can cause halting in the material flow.

31

Crust Yard-


1. The data had to be transformed using Box Cox Transformation for normalization. The
new target value for the Crust Yard now comes at 1.22 lakh sq ft per day.
2. The Ppk value has improved from -0.31 in the previous quarter to -0.20 indicating that
improvement has been done from previous quarter. This shows that process has shifted
more toward the desired center.
3. As of now the process is unable to achieve the target 86.90% times. But it is expected to
go whopping down to 73.06%.
4. The process is in exact synchronization with the Setting process as the main outcome
here is also at 1.1 lakh sq ft/day.

32

Finishing Yard-


new target value for the Finishing Yard now comes at 0.40 lakh sq ft per day.
2. There is a slight improvement in the finishing department as the Ppk value has reduced
to
-0.23 from -0.26 in the previous quarter.
3. The process in synchronized with the Crust yard as majority of data points to 0.02
which is at par with 1.1 to 1.2 lakh sq ft in non-transformed data .
4. The process will got to a point where it will be unable to achieve 75.31% of the targets
each day compared to 82.72% of current if no unexplained variables enter the study.

33

Ware House Department-


new target value for the Ware House now comes at 1.22 lakh sq ft per day.
2. The process is slightly off center as indicated by the Ppk value of -0.13. It is slightly
better than the previous quarter where it was -0.16.
3. The majority of times value achieved is 0.8 lakh sq ft per day followed by the target
value of 1.2.
4. If no unassignable causes enter the study then the ware house will reach a point where
in it can’t achieve its targets 65.09% of the times. The best after the Dye House.

34

Summary of 3rd Quarter-

3rd Quarter Graph of Each Department

35


1. The performance of this quarter has improved from previous quarter. The processes
that had suffered downfall in the previous have shown improvement in this quarter.
2. The “Shaving” and “RM” have the maximum spread among the processes and thus
the problem areas of the quarter are mainly the Shaving and RM. Maximum focus is
needed on these departments for the development as a complete system.
3. Dye House and Setting Yard are in synchronization in the performance and the graphs
can be seen as overlaying upon each other.
4. The Finishing and Ware House have lest spread in their processes and thus are seen as
best performers of the quarter.

36

Analysis of 4th Quarter (January 2012 – March 2012)-



1. The Ppk value of -0.58 indicated that the process is heavily off centre. It indicates that
the department has some serious problem in maintaining the process to the target value.
2. The observed performance shows that whopping 94.87% of the times the target of 1.4
has not been achieved. It can cause serious damage not only to the department but also
to the processes that come next in the sequence.
3. 1 lakh sq ft is the majority of the times issue of the raw material.
4. Also the number of working days has gone down compared to previous quarter.

37

Shaving Department-


1. The Ppk Value of -0.40 indicates that the process is very much off center. Some
attributed to the performance of RM but still the process is facing challenges.
2. As seen from the graph as of now 92.50% of the times the target value is not achieved.
It will get down to 88.72% if no unassignable causes enter the study.
3. The process is in synchronization with the RM as majority of the times the outcome of
the Shaving process is also 1 lakh sq ft per day.
4. The process needs attention as the next processes are dependent on the outcome of the
process.

38

Dye House-

1. The data of the process needed to be transformed using Box Cox Transformation. The
new value of the target value now becomes1.96.
2. The Ppk value is -0.19 which is far less than the value of the previous processes. This
indicates that dyeing process is still stable compared to other processes and thus can be
dealt with later.
3. It is unable to achieve the target value 70.89% of the times which can escalate to 72.03
if no unexplained causes enter the study.
4. Dye House’s majority of the output is quite near to the target value of 1.96 at around
1.90.

39

Setting Yard-

1. The data was transformed using the Box Cox Transformation. The new target value is
0.4 lakh sq ft.
2. The Ppk value of -0.24 indicates that the process is under some variation but they are
not as severe as the RM and Shaving.
3. The process is unable to attain its goals 85.33% which gets reduced to 76.22% if no
unexplained variables enter the study.
4. Majority of times the value achieved is quite close to the target around 0.2-0.3.

40

Crust Yard-

0.4 lakh sq ft.
2. The Ppk value of -0.44 indicates that the process is under lot of variations almost as
severe as the RM and Shaving.
3. The process is unable to attain its goals 96.10% of the times which get reduced to
90.45% if no unexplained variables enter the study.
4. The target is achieved very few times and majority of the times 0.2 lakh sq ft is the
achieved value.

41

Finishing Yard-

1.22 lakh sq ft.
2. The Ppk value of -0.35 indicates that the process is under quite some variations that
need to be addressed.
3. The process is unable to attain its goals 89.47% of the times which get reduced to
85.50% if no unexplained variables enter the study.
4. The target is achieved very few times and majority of the times 1 to 1.1 lakh sq ft is the
achieved value.
5. The process is synchronized with the Crust yard as the outputs of both match.

42

Ware House-


1. The Ppk Value of -0.19 indicates that the process is very much stable compared to
other processes.
2. As seen from the graph as of now 83.56% of the times the target value is not achieved.
It will get down to 71.18% if no unassignable causes enter the study.
3. The process is in synchronization with the Finishing as majority of the times the
outcome of the Finishing process is also 1 lakh to 1.1 lakh sq ft per day.

43

Summary of 4th Quarter-

Graph of 4th Quarter for Each Department

44

1. The performance of this quarter is the worst among all the quarters of the years.
2. The processes of Dye House and Setting show maximum spread and thus are the
departments with maximum variation and need max attention.
3. Ware House is the best performer of the quarter as it is the time foe clearing the
inventory as the company follows the March to April yearly system of accounting.

45

Yearly Trend of the Production-

Yearly Graph of Operations
For the
Year 2011 for Each Department

46

1. When seen on a yearly basis almost all departments get aligned. This indicates that
though the quarterly variations occur the company is able to match all the operations
by the end of year.
2. RM and Shaving can be seen almost alike though RM is more off centre than the
Shaving department. Both these departments are the basis of all operations and the
variations in them are to some extent cause of variations of other operations.
3. All through the year the Dye House has minimum variation that can also attributed to
the fact that it has most straight forward and direct operations. Also the manual error
is only in the case of wrong color and wrong amount mixed to the leather. This
department is thus seen as best performer of the year.
4. Setting, Crust Yard, Finishing and Ware House are almost synchronized and perform
stably though not quite capably.
5. As seen from the first graph no department is able to cross the 40% mark of the target
set for them.

47

Conclusion and Recommendation-
It can be concluded that the company is facing operational bottlenecks due to several reasons.
Some of them being-
1. Raw Material and Shaving departments that form the base of operations are not
performing according to requirements.
2. Inventory mismatch or lack of inventory of RM halts all the processes of the entire
unit.
3. The booking of orders does not match with the raw material availability.
Marketing is booking orders of running raw material and not the inventoried raw
material.
4. Maintenance of inventory adds cost to the final cost of goods manufactured.

Thus to raise the bar company can, on the basis of study done, do the following steps-

1. Get better suppliers for running raw material. Inventory can be maintained of
those materials that are imported and take longer to procure.
2. The Raw Material Department should be in tandem with the Marketing
department so as to put a tab on the bookings done and the date set for delivery.
This will enhance the efficiency.
Marketing should book orders after checking the raw material availability.
This will allow clearing of the inventory of those materials that are not
used very often and thus pile as inventory.
Fewer inventories will also allow for less expenditure on managing
inventory and thus will reduce the cost of final product.
3. The workers should to be trained as many of them are new. Training of workers
can boost the efficiency as the time for the operations can be reduced to a great
extent. Thus training schedules for the workers can be planned by the
management.
4. Inter- Departmental communication can be greatly enhanced by the use of
signalling technique of “Kan Ban”.
Various colour codes can be used like Red for shortage of supply from one
department to other and Green for good ready to be transferred to next
department

48

Bibliography-

1. Notes at Tata International Limited, Dewas
2. Previous report by Mr. Nagendra Singh of Leather Institute, Kanpur
3. “Six Sigma Green Belt” Notes made during the classes of Six Sigma at Amity
University
4. www.google.com

49

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