Bhaghat G (PGP2013-15) student of IIM Kashipur shares his summer internship experience in the field of operations & supply chain management on platform of the OSM Club

1. Operations Review &
Identification of Cost Saving/ Efficiency Improvement
Opportunities at PMV Maltings Pvt. Ltd.
By
Bhaghat G

2. Kashipur Plant
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3. The process
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4. MIS Report
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5. Questionnaire: Production Dept.
Rate from 1 to 5, wherever applicable
• 1 – Bad; 2 – Just Fine; 3 – Good; 4 – Very Good; 5 – Excellent
• Bad – Multiple breakdowns, lot of maintenance issues, the problem might get
worse, lack of spare parts in case of emergency.
Skill set of the employees low
• Just Fine – Running properly as of now (basically on Jugaad). But don’t know when
it breaks down. Only few employees are adequately skilled
• Good – Running alright currently; enough back up available in case of failure. Lot of
cost saving is possible. Many people working have decent skill sets and only few
have good skills
• Very Good – Equipment running as recommended by manufacturers or experts.
People working on it have enough knowledge to tackle any situation as and when it
arises. Proper availability of spares; Improvements in process can be made
(although at a slightly higher cost)
Many people working have very good skills
• Excellent – No complaints; seems perfect; Optimum inventory of spares; cannot
suggest any further improvements. Many people working have excellent skills
•
Questionnaire for middle managers
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6. • Rate of the efficiency of the system in your work area?
• Rate the overall efficiency of the plant (depending on the possibility of improvement)?
• Rate the average training level of the employees in your dept.
• Rate the responsiveness of your team in case of breakdown or any other problem
• Rate the mechanical maintenance team
• Coordination between production dept. and mechanical maintenance dept.
• Rate the electrical maintenance team
• Coordination between production dept. and electrical maintenance dept.
• Rate the following
i. Process of barley weighting
ii. Checking water level in tanks
iii. Loading steep tanks
iv. Separation of CO2
v. Transfer to GB
vi. GB loading
vii. Temperature control in GB
viii. GB unloading
Questionnaire for middle managers
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7. 7
S.No Name Dept Designation Exp
Eff.in own
dept
Eff. Of
plant
Preventive
maint.
Breakdown
response of
ur team
Breakdown
response
process
Productio
n section
coord bt prod
& main teams
Other
maint. team
Coord bet
both maint.
teams
1 S.C.Joshi Elec_main Head 35 4 4 3 5 3 3 4 3 3
2 Rais Ahmed Elec_main staff Engg 5 4 3 5 5 4 3 2 4 4
4 Mandeep Singh Mech_main Head 9 3 3 3 4 3 2 3 4 4
5 Suresh Kumar Mech_main staff Engg 4 4 3 4 4 3 3 4 4 5
6 Anuj Mech_main staff Engg 3 4 3 4 4 3 3 4 4 4
3.8 4.4 3.2 2.8 3.4 3.8 4
Dept Designation Exp
Eff.in own
dept
Eff. Of
plant
Breakdown
response of
ur team
Mech_maint
enance team
Coord. Bet
prod &
mech_main
Elec_main
tenance
team
Coord. Bet
prod &
Elec_main
7 T.C.Upadhay Production Head 3 3 3 2 3 3 3
8 D S Neghi Production supervisor 3 4 4 2 3 3 3
9 shishir Chandra Production 11 3 4 3 3 3 3 3
Total 3.33 2.33 3 3 3
3.5 3.375

8. 1. Rate the safety measures adopted in your dept. (Gloves, helmet, shoes, jacket, goggles,
mask etc.)
a. Very Good b. Good c. Just Fine d. Bad e. Very Bad
2. Frequency of problems in your work area when compared to last year
a. Increased b. decreased c. more or less the same
3. Rate the working condition of the machines
a. Very Good b. Good c. Just Fine d. Bad e. Very Bad
4. Work hours
a. As mentioned b. more overtime c. less than mentioned
5. Rate of occurrence of problems
a. Very high b. High c. Reasonable d. Low e. Very low
6. Response from the management when complained
a. Prompt b. not so prompt c. apathetic
7. Difficulty of work
a. As expected b. more than expected c. less than expected
8. How is the management’s attitude towards mistakes committed?
a. Very Serious b. serious c. take it easy policy
9. Does management convey the instructions clearly
a. Very clear b. somewhat clear c. manageable d. Not at all clear
10. Rate the wastage in your work area
a. No wastage b. Somewhat c. Lot of wastage
Questionnaire for level 2 employees
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9. Issue Follow up system
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Issue/improvementpossibility Problemarea/dept.
Significance
(High/Medium
/Low)
Whatare the effects Solution
Costof
implementation
Practical problemsin
implementationof solution
Isthe impl anecessityorjustan
additional benefit
If decidedto
implement,who
takesthe ownership
Tentative date
of completion
Status Remarks
Excessfuel consumption
Boiler, mainlydue to
steamwastage,
condensate leakage and
under- util of condensat
More cost,pollution, fuel shortage,
wrongsignalstoworkersabout
seriousnessof mngmnt
change steamsafetyvalves;
Optimumusage of DG(easyto
implementwhenmore people
are recuited/trained)
1- 2lakhs(forsafety
valvesandafraction
of recr&training
cost)
Notseenascritical
Both.Itwill have directimpact
oncompany'srevenue and
improve the safety
Mr.Anand, CFO 1stJune
Cleanlinessof equipment MainlyinPC/BG
Frequentmaintenance problems
includingbreakdowns.Greatertime
tocorrectincase of anyprob
Cleanitregularly <10k/month
Difficultworkingconditions,
lackof sufficientmanpower,
regularfollowup
Itisnotdiff toimplement
Mr.Joshi + Mr.
Suresh;Mr.Anuj +
Mr.Raiz(onrotational
basis)
Cont.process
Low motivationlevel among
employees
Whole plant
lackof interestleadingtodecrease
inproductivity, attrition(leaving
job)
Celebratingbirthdays, recogof
goodworkandrewardingit,
new perf appraisal policy,
canteen, 2more watercoolers
<5k/month
These initiativesincur
additional costsbutdonot
genertare directincome
atleastfew of these canbe
implemented
Mr.Vineet 1stJune
Switchingonlightsduringday
time
Atseveral placessuchas
Topof silos, nearthe
entrance
Powerwastage, more pollution
Itis asimple job.Butthe
responsibilityhadtobe
allottedtosome one
zero
manypeople view itastoo
simple anissue toconsider
Mr.Suresh Cont.process
Notimmediate change overto
UPCLfromDGduringpower
failures
Rs.10more perunitof electricityis
consumedbecause of DG.
Additional costscanruninto
thousands
Recritment...lackof suff
manpower.Onlyasupervisor
andhisassthave tohandle GB,
steep, Kiln.
zero
problematictotake prompt
actionduringnights
Doesn'ttake muchof aneffort BS/DS Cont.process
General alignmentof locking
andunlockingcylinders(GBs)
GBs
Machine wearandtear, frequent
breakdowns, time loss
Trainingforoperators, quickly
resolvinganytechnical issues
Batchqualitymightbe effected
due tolessertime forabatch
Mr.Raiz
PumpHouse problem PumpHouse
Onanavg8manhrslost/day.
Machine mightgetdamagedsoon;
Prbmif boilerdonotreceive water
intime (~4.5timesineveryshift).
Positive suctioncanbe
adopted
<1lakh
Pumpsneedtobe shutfor
some time
Mr.Anand, Mr.
Mandeep
1stJuly
Preventive mainenance of
machinerynotregular
Multiple places
Decrease of equipmentlifetime,
frequentbreakdowns
Recruitment,trainingand
supervision
Costof hiring
additional staff
Currentlymanpower
constraints
Increasedbreakdownscan
create lossesinlakhs.So, highly
necessary
Mr.Mandeep,
Mr.Joshi
1stJuly
Bardanaproblem
Bagsof requiredsizes
(40kg, 60kg) are not
readilyavail formalt
loading
delayindispatch, truckwaiting
charges, space constaintsproblems
whichwill increase infuture
Asdispatchingisaregular
process, standardize the
processtoavoidlastminhurry
Justsome time for
planning
Findinggoodsupplierswho
provide bagsforlessercost
Automationproblem(PLC)
Zerolimitsensorsat
conveyers, Material
sensorinkiln, Variable
FreqDrive (VFD) inGB3
Lossof power, bypassingcomes
withitsownrisks
Detectareaswhere automatn
ispossandimplementautoif it
canbe effectivelyimpl with
lessercosts;trainoperators
Dependsonwhere
automationis
implemented;
trainingcosts
Necessaryasthe freqof PLC
probmsare increasingleading
tolossof batchqualityand
more breakdowns
Mr.Raiz, M.Mohit 1stJuly

10. • Operations related
• Production related
• HR related
• Technology related
Recommendations
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11.  Lets do some Jugaad
 Bardana problem
 Switching power from DG to UPCL
 Water Pump problem
 Shift from Auto mode to manual
 Safety Value issue
 Employee care & labour relations
 Inter-department coordination
 Lights On & Off
 Management of Spare parts
 Kiln: Optimization
Issues, Recommendations & Key learnings
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12.  Lots of scope for Improvement
 Not just one direction
 Communication is important
 Company comes first
 Its good to be Socially responsible, ethical & follow law (as much as
possible)
Conclusion
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13. Silos
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14. Boiler
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15. Water Pump, Kiln
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16. Germination Box
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17. Under Construction
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