PGCBM 22 – Group 50Sharda Oil MillsProduction & Process AnalysisRavipratap Singh Tomar (2224997-Gurgaon),Shashank Kumar (2224682-Vadodra),Vrishali Rajhans (2224164- Borivali),Ganesh Gopalkrishnan (2224693-Vadodra) Prof. Rajiv Mishra
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 onebyproduct, the solid part (Oil cake or Khalli) is used as an admixture for milk producingcattle’s food, which helps them to increase volume of milk production. Sharda Oil Mill issmall scale unit produces mustard oil using mustard as raw material and having a byproductoil cakes (“Khalli”).This small plant can be treated as continuous / line plant, which needs very limited numberof processes and limited number of machineries / equipments are used but the processesare not continuous lets understand it betterIdentification under Product MIXSOM = Sharda Oil Mill
History of Sharda oil mill is , they had started the business with a bull working for getting oilmill , 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/ Dayafter investing almost 25 Lakh in 2 yr., where BEP was met in 6 years and now baring theperpetual output from it, being a low maintenance machine they are able to earn more. Thiscompany will slice for shifting to more Line and subsequently to Continuous. Since theproduct type is such that where :Kacchi ghani” is becoming un popular due to heavy andlesser refined , the type of product can also be limited in the same fashion and moving moretoward 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 inmajority, quality of seeds are of under controllable range but since the location of land isnear to Tehsil`s biggest mart, option for superior quality is easy which is done on two samplequality assessment basis here two samples are taken randomly from one cubic feet (OneTrolley of farmer`s tractor), and checked for yellowness of seed and the moisture content inseed under field and Lab testing facility.After Quality assessment the material is measured and loaded in located storage place(Refer Fig. Plant Layout).
Equipments / Machinery:-We may list the establishment list as:-Item Description QuantityOil Expeller 2Filter Press (Oil Extractor) 1Other support equipments like electric As required (having one set of Belt and toolmotors, diesel engine, conveyor belt, box , which are enough to open / pack complete Oil Expeller / Filter press)Testing laboratory 1weighing 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
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
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.
DECOUPLING POINT FLOW OF MATERIAL Raw Material Production Whole Seller’s Storage Retailer’s Storage Customer6. PRODUCT POSTPONEMENTAlthough, direct redesign of the product manufacturing process is not feasible but followinggives 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
between two expellers (due to space), if batch size is directly taken from unpacking area then will have requirement for additional 2 non skill laborMitigation Plan: Creating smaller batch sized bag / temporary batch, which can be directly stacked atsame area (As at stage 2), this batch needs to be reusable.Since the investment is low budget where conveyer belt cannot be used / purchased hencereusable 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 envisaged4. 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.
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.
Oct-12 Rapid Plant Assessment Rating--Table 1 Rating Considerations Chart 1No Measure Factors Customer Customer ratings, quality certifications & ratings, warranty & product liability costs, employee knowledge of external and internal customer1 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 operations & teams safety, quality, & productivity, control room3 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 & material5 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 & WIP6 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 & tooling8 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 to9 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 Chain10 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 System11 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
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
Rated by:_ Group (VR GG SK RPT) Rapid Plant Assessment Oct-12Tour 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
Study of a car engine manufacturingEngine is the heart of any automobile and when it comes to an engine of a car which isa vehicle used by millions across the world ,the following parameters are very importantfor a car engine manufacturing companyWhile a study is conducted to identify areas of improvement while manufacturing orassembly 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 costsNormally a Car engine consists of the following components and is being sourced fromvarious parts of the world which is received in the engine assembly plant ,be it Honda,Toyota ,Skoda ,Volvo or any other car enginesThe car engine manufacturing companies source all the above materials from differentsuppliers and assemble it in the plantThese engines are internal combustion engines and has the following componentsCylinder Blocks,Crankcases ,Pistons ,Piston Rings ,Piston pins ,Piston pin locks,Connecting Rods ,Rod Bearings ,Shims ,Crank Shafts ,Camshafts ,Valve Lifters,TimingGears ,Valves ,Engine Bearings,Flywheels ,Cylinder Heads ,Oil Pans ,Manifolds ,OilPumps ,water pumps ,Carburatos,Fand and Gaskets
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
Business ProcessHigh Pressure Die CastingThis facility produces the cylinder block. Aluminium ingots are loaded into furnaces andmelted. These furnaces are capable of melting 800kg of aluminium an hour and areunique as they combine both the melt and holding furnace. The dies are then forcedtogether, at which point molten aluminium is poured into the shot cylinder and fired intothe dies at around 2.7 metres per second. Once casting is complete, the dies open andthe cylinder block is transferred to the inspection platform before being passed toMachining Machining and ToolingMachiningHere the block and head cast components undergo various cutting, milling, drilling,boring, honing and reaming operations. The layout of the Machining Lines is extremelycompact, with Computer Numerically Controlled (CNC) machines achieving consistenthigh-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 consistentlevel of quality is maintained.ToolingAssociates who work in Tooling maintain and control all the specialist cutting tools usedwithin both head and block machining.Engine Material ServicesEngine Material Service (EMS) receives component parts from all over the world. Allparts for die-cast, machining and engine assembly are managed using ‘first in first out’principles.Low Pressure Die CastingThis facility produces the cylinder block. Aluminium ingots are loaded into furnaces andmelted. These furnaces are capable of melting 800kg of aluminium an hour and areunique as they combine both the melt and holding furnace. The dies are then forcedtogether, at which point molten aluminium is poured into the shot cylinder and fired intothe dies at around 2.7 metres per second. Once casting is complete, the dies open andthe cylinder block is transferred to the inspection platform before being passed toMachining
Engine AssemblyThis is where the machined engine blocks, cylinder heads and clutch and transmissioncases 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 blockand the springs and valves are built into the cylinder heads. Once the sub-assemblyprocess 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 byoverhead conveyor to the Engine Control Centre. This houses a High Speed Serverwith a fully automated engine storage and retrieval facilityEngine QualityThe Engine Quality (EQ) Departments role is to support in the design and developmentof engine components right from initial concept to mass production. EQ also supportsthe Die Cast, Machining and Engine Assembly sections with process confirmation andcalibration, 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 transmissioncomponents.Improvement AreasThe 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 operationSuggestions 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
7. Reduce vendors8. Make ontime performance part of expectation9. Make it a pull systemSixSigma