SlideShare a Scribd company logo
Tomato sauce
production of
Fruitoman’s
company
Mini project on process management
SUBMITTED TO: SUBMITTED BY:
FR. FRANCIS SEBASTIAN SANURAJ R
RBS PDGM-B, P14208
2
TABLE OF CONTENTS
SL.NO TOPICS PAGE NO
1 Company profile 3
2 Product profile 4
3 Operation strategy of the company 4
4 Methods of demand forecasting 5
5 Processdiagram 6
6 Potentialcapacity, immediate capacityand effective
capacity
8
7
Production planning system
8
8
Modern production managementmethods
9
9 Jobs, job scheduling & application of standard time 9
10 Constraints in the production process 9
11 Suggestions 10
12 Reference 11
3
COMPANY PROFILE
Fruitoman’s was established in the year 1957 under the leadership of Mr. N.J Thomas and his
associate Mr. P.S Lucko. During the initial years they mainly concentrated on the pineapple
products. Fruitoman’s set up a unit at Vazhakkulam in Kochi, and it served as the major
pineapple sourcing centre in south India. Over the following years they shifted their gear from
pineapple products to a variety of products. They were able to positioning their brand in the
customer’s mind within a few years of time. Because of their excellent quality, safe packing, rich
in aroma, mouth-watering taste, delicious flavour their products are highly demanded in the
market. The entire infrastructure is divided into various functional departments such as
procuring, production units, quality control department, packing unit, sales and marketing
managed by an experienced team of professionals. They are familiar with the latest
manufacturing techniques and machines used in the production unit. Around hundreds of
products are manufactured by Fruitoman’s some of them are jams, hot sauces, squashes, fruit
syrups and crushers, fruit pulps, canned fruit juices, flavours and essence. The company’s annual
turnover is around Rs.25-50 Crore. The total number of employees is around 200 to 300 people.
Logo of the FRUITOMAN’S
4
PRODUCT PROFILE
The Fruitoman’s have 9ranges of products available in different flavours they are as Follows:
 Jam: Apple, Mango, Strawberry, Mixed Fruit, Pineapple, Orange.
 Squashes: Apple, Passion Fruit, Lemon, Orange, Mango, Pineapple.
 Sauces: Tomato, Soya bean, Peperico, Mustard, Oyster, Tomato Chilli, Worcestershire,
Cooking Sauce, Barbecue, Chilli, Red Chilli, Ginger Garlic.
 Fruit Crush: Apple, Orange, Lemon.
 Fruit Pulps: Mango Pulp, AlphonsoPulp, Tomato Pulp.
 Canned Fruits & Fruit Juices: Fruit Juices (Tomato, Mango, and Pineapple), Canned
Fruits (Pineapple Slices, Fruit Cocktail, and Mango Slices).
 Essences Flavours: Flavouring Agent of Tender Mango, Garlic, Lime.
 Pickles: Mango, Tender Mango, Garlic.
OPERATION STRATEGY
The operational strategy is basically a plan that defines how a firm uses its production resources
to meet their organizational goals. The operational strategy of Fruitoman’s includes inventory
management, production management, quality management, process design &layout
management, logistic management.
Inventory management: The main objective of inventory management is to identify the
inventory requirements for production, sales at minimum cost. They also monitor the flow of
material into and out of stock rooms in order to minimize the material cost.
Production management: The production management of Fruitoman’s includes the selection of
product and design, selection of the best production process so that they can reduce the cost per
unit which results in the profit maximization, selection of production capacity, maintenance of
machines used in production so that it would not interrupt the production, production planning
which includes fixing of starting time and end time for each item because Fruitoman’s produces
a wide ranges of product. For example, if they are producing tomato sauce today, sometimes
tomorrow they will have to produce apple based on the orders they are getting so they need
proper production planning.
5
Quality management: Fruitoman’s is famous for the best quality products and the quality
management is managed by a set of professional expert’s. They monitor the quality of the raw
material used, the quality of the packing service, reducing the wastage in the plant. Quality is an
important factor in gaining customer satisfaction they by increasing the overall sales, which
ultimately lead to profit maximisation
Process design & layout management: This management involved in the decision making
regarding the most suitable process selection, flow of the process, and layout of the facilities, and
analyze the work flow from raw materials to finished goods.
Logistic management: A separate management is there to monitor the flow of raw materials into
the firm for production and the outflow of finished goods into the customer. They analyze
whether the right quantity of product reaches the right customer at the right time.
DEMAND FORECASTING METHOD
The company basically uses three methods for forecasting and they make a decision based upon
the three results obtained. The methods are as follows:
 NAÏVE forecasting method- it is one of the methods used by the company to forecast the
demand. In this method the actual demand of the last period is taken as the demand for
the current period. Suppose the sales during July were 200 units, then the demand for the
product is assumed to be 200 units in August.
 Sales force opinion survey method: In this method the opinion of sales person is
considered, because they are the ones who has direct contact with the customer. The sales
person asked to provide details of the estimated sales in their respective area at a regular
interval of time.
 Panel consensus: the forecasting is based on the opinion of experts. The Expert’s opinion
poll is the method being used. In this expert’s from inside and outside the organization
are invited and request to give the opinion about the product sales. They are able to
predict the sales of the product under different condition based on their experiences.
6
PROCESS DIAGRAM FOR TOMATO SAUCE PRODUCTION
The process diagram of Tomato sauce production is given above. The entire process consists of
three stages: preparatory stage, processing stage and packaging stage.
Preparatory Stage:
The figure above shows the boiler used in the production process. It is basically a closed vessel
which contains water inside. The timber woods are burnt in a furnace and the hot gases from the
furnace is used to heat the water and after 100 degrees Celsius the steam is produced and this
steam is piped into the kettle for the production process. The raw material such as tomato paste,
sugar, water, salt and vinegar should be ready before the production starts
RAW
MATERIALS
FOR
PRODUCTION
STEAM
JACKETED
KETTLE
FOOT
MILL
EQUIPEME
NT
FILLING
SECTION
BOILER
7
Processing stage:
Steam-Jacketed Kettle is similar to the double boiler and it is made up of stainless steel. It is
designed in such a way that it contains both an inner and outer steel wall and the steam from the
boiler is released into this space. The kettle has a maximum capacity of 1000 kg. The
temperature inside the kettle is maintained at 220 degree Celsius. The tomato paste, sugar, salt
and water are added to the kettle and it is blended and boiled up for 30 minutes. Then we get a
threefold concentrate that is the entire product is concentrated to 28 to 30 percent solids in which
12 percent are tomato solid. After 30 minutes the sauce is passed into foot mill in order to crush
the lumps and make it finer.
Filling stage
Swan Pack’s filling machine is used in packing/filling stage. The hot tomato sauce is filled into
clean and dry bottle, crown capped and stored in the room temperature to cool. The tomato sauce
8
is filled into 1 litre, 750ml, 500ml, and 250ml bottles. The filling machine has the capacity to fill
around 15000 bottles per day.
POTENTIAL CAPACITY, IMMEDIATE CAPACITY AND EFFECTIVE CAPACITY
Potential capacity of the firm is: 18000 bottles per day
Immediate capacity of the firm is: 12000 bottles are permanently stored in the case of an
emergency.
Effective capacity of the firm is:15000 bottles per day
PRODUCTION PLANNING SYSTEM
The production planning system is same as that we discussed in the class. The production plan
consists of planning, routing, scheduling and dispatching & follow-up.
Planning: In this competitive market planning plays an essential role. The Fruitoman’s started
their business as pineapple products manufacturing units. Now they have around 100 of products
the main reason behind this success is the proper planning. They planned in advance to make a
variety of new products, they planned how to do it, what technique they have to use, and who is
the one to lead from the front.
Routing: Routing involves the decision regarding production layout. Selection of the appropriate
path for transforming the raw material into finished. So they can reduce the lag time as well as
the cost of production.
Scheduling: The Fruitoman’s has a wide variety of products, and they make the products based
on the orders they get. A scheduling chart is prepared based on what product they have to
produce and by how much amount.
Dispatching& follow-up: Once the route sheet and schedule charts are ready, then it’s time to
start producing the product. The top authority release order to start the production in the form of
dispatch. The follow-up is done every day to check out the working progress and to ensure
whether the production meets the planned performance.
9
MODERN PRODUCTION MANAGEMENT METHODS
 Materials Requirements Planning (MRP)
 Total Quality Management (TQM)
 Optimized Production Technology (OPT)
 Just-in-Time (JIT)
TYPES OF JOBS, JOB SCHEDULING AND APPLICATION OF STANDARD TIME
The types of job involved in the production are as follows:
Preparatory stage: In this stage the procurement of raw materials which is managed by a
supervisor and 3-5 labours. Since the production depends on the amount of the order, the time
taken by this job can be varied.
Processing stage: In this stage the raw materials are mixed into a kettle for processing, under the
presence of an experienced employee and two labour. It takes 30 minutes to complete this job.
After that the sauce passes through the foot mill to crush the lump pieces and make it finer, it is
done with the help of 2 labours and require about 10 minutes.
Filling stage:
The filling stage is fully automated so it requires fewer employees. It takes only seconds to fill
the sauce in bottles. And the process is monitored by less than 3 labours.
Packing stage
Packing stage requires around 5-6 employees because the crown corked is done manually and it
takes around 10-15 second to crown capped 1 bottle.
CONSTRAINTS IN THE PRODUCTION PROCESS
 Transportation problem: tomato paste is being used for the production of tomato sauce.
And this tomato paste is imported from Karnataka through roadways, during the
transportation strike days the load may delay and it resulted in the stoppage of the entire
production
10
 Power supply problems: The plant is located near to residential area. Frequent power
failures occur in this region because of this the company has to depend more on
generators to carry out the production process and it interrupts the production process.
 Availability of raw material: as I told earlier tomato paste is one of the key ingredients
used in the production, tomato is basically a warm crop and the temperature below 16 0C
and above 27 0C is not suitable for tomato cultivation. And it will result in a shortage of
tomato paste in production during winter season.
SUGGESTIONS FOR IMPROVING PRODUCTIVITY
The company can improve productivity by using various production management methods. One
of the methods I suggest the implementation of SAP software in the organization. As
Fruitoman’s is producing diversified products it will be really beneficial if they use SAP
software. It provides a common centralised database for all the applications running in the
organization. Some of its applications are Product Lifecycle Management (PLM), Human
Resource Management Systems (HRMS), Supply Chain Management (SCM), Advanced Planner
and Optimizer (APO). One of the main advantages of using SAP is the integration of all the
activities. It helps in cost reduction, if the company can reduce the production cost it will
increase the productivity as well as the profit of the firm. By using the SAP the accuracy level in
doing things shows more than expected results. Second method I suggest is to use quantitative
method in demand forecasting rather than depending on qualitative techniques. The qualitative
techniques may not always be true because it is mainly based upon facts rather than scientific
evidences. By using quantitative methods such as Trend projection methods, exponential
smoothening method, moving average methods the firm could forecast the demand accurately. If
so that they could meet market demand without any type of congestion, thereby improving the
overall productivity. The third method I suggest is a complete automation in the production
process, some people show reluctant to work in unpleasant condition. The boiling of tomato
paste in kettle produces a foul smell which makes it hard for employees to be near around that
place this can be overcome by using complete automation technique. The automation helps in
eliminating the employees from drudgery which motivates and encourage the employees resulted
in job satisfaction and organizational commitment, ultimately leads to increase productivity of
employees as well as the firm.
11
REFERENCE
Mr. GEORGE THOMAS
Director of Fruitoman’s group

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Tomato Sauce production of Fruitoman's Company

  • 1. Tomato sauce production of Fruitoman’s company Mini project on process management SUBMITTED TO: SUBMITTED BY: FR. FRANCIS SEBASTIAN SANURAJ R RBS PDGM-B, P14208
  • 2. 2 TABLE OF CONTENTS SL.NO TOPICS PAGE NO 1 Company profile 3 2 Product profile 4 3 Operation strategy of the company 4 4 Methods of demand forecasting 5 5 Processdiagram 6 6 Potentialcapacity, immediate capacityand effective capacity 8 7 Production planning system 8 8 Modern production managementmethods 9 9 Jobs, job scheduling & application of standard time 9 10 Constraints in the production process 9 11 Suggestions 10 12 Reference 11
  • 3. 3 COMPANY PROFILE Fruitoman’s was established in the year 1957 under the leadership of Mr. N.J Thomas and his associate Mr. P.S Lucko. During the initial years they mainly concentrated on the pineapple products. Fruitoman’s set up a unit at Vazhakkulam in Kochi, and it served as the major pineapple sourcing centre in south India. Over the following years they shifted their gear from pineapple products to a variety of products. They were able to positioning their brand in the customer’s mind within a few years of time. Because of their excellent quality, safe packing, rich in aroma, mouth-watering taste, delicious flavour their products are highly demanded in the market. The entire infrastructure is divided into various functional departments such as procuring, production units, quality control department, packing unit, sales and marketing managed by an experienced team of professionals. They are familiar with the latest manufacturing techniques and machines used in the production unit. Around hundreds of products are manufactured by Fruitoman’s some of them are jams, hot sauces, squashes, fruit syrups and crushers, fruit pulps, canned fruit juices, flavours and essence. The company’s annual turnover is around Rs.25-50 Crore. The total number of employees is around 200 to 300 people. Logo of the FRUITOMAN’S
  • 4. 4 PRODUCT PROFILE The Fruitoman’s have 9ranges of products available in different flavours they are as Follows:  Jam: Apple, Mango, Strawberry, Mixed Fruit, Pineapple, Orange.  Squashes: Apple, Passion Fruit, Lemon, Orange, Mango, Pineapple.  Sauces: Tomato, Soya bean, Peperico, Mustard, Oyster, Tomato Chilli, Worcestershire, Cooking Sauce, Barbecue, Chilli, Red Chilli, Ginger Garlic.  Fruit Crush: Apple, Orange, Lemon.  Fruit Pulps: Mango Pulp, AlphonsoPulp, Tomato Pulp.  Canned Fruits & Fruit Juices: Fruit Juices (Tomato, Mango, and Pineapple), Canned Fruits (Pineapple Slices, Fruit Cocktail, and Mango Slices).  Essences Flavours: Flavouring Agent of Tender Mango, Garlic, Lime.  Pickles: Mango, Tender Mango, Garlic. OPERATION STRATEGY The operational strategy is basically a plan that defines how a firm uses its production resources to meet their organizational goals. The operational strategy of Fruitoman’s includes inventory management, production management, quality management, process design &layout management, logistic management. Inventory management: The main objective of inventory management is to identify the inventory requirements for production, sales at minimum cost. They also monitor the flow of material into and out of stock rooms in order to minimize the material cost. Production management: The production management of Fruitoman’s includes the selection of product and design, selection of the best production process so that they can reduce the cost per unit which results in the profit maximization, selection of production capacity, maintenance of machines used in production so that it would not interrupt the production, production planning which includes fixing of starting time and end time for each item because Fruitoman’s produces a wide ranges of product. For example, if they are producing tomato sauce today, sometimes tomorrow they will have to produce apple based on the orders they are getting so they need proper production planning.
  • 5. 5 Quality management: Fruitoman’s is famous for the best quality products and the quality management is managed by a set of professional expert’s. They monitor the quality of the raw material used, the quality of the packing service, reducing the wastage in the plant. Quality is an important factor in gaining customer satisfaction they by increasing the overall sales, which ultimately lead to profit maximisation Process design & layout management: This management involved in the decision making regarding the most suitable process selection, flow of the process, and layout of the facilities, and analyze the work flow from raw materials to finished goods. Logistic management: A separate management is there to monitor the flow of raw materials into the firm for production and the outflow of finished goods into the customer. They analyze whether the right quantity of product reaches the right customer at the right time. DEMAND FORECASTING METHOD The company basically uses three methods for forecasting and they make a decision based upon the three results obtained. The methods are as follows:  NAÏVE forecasting method- it is one of the methods used by the company to forecast the demand. In this method the actual demand of the last period is taken as the demand for the current period. Suppose the sales during July were 200 units, then the demand for the product is assumed to be 200 units in August.  Sales force opinion survey method: In this method the opinion of sales person is considered, because they are the ones who has direct contact with the customer. The sales person asked to provide details of the estimated sales in their respective area at a regular interval of time.  Panel consensus: the forecasting is based on the opinion of experts. The Expert’s opinion poll is the method being used. In this expert’s from inside and outside the organization are invited and request to give the opinion about the product sales. They are able to predict the sales of the product under different condition based on their experiences.
  • 6. 6 PROCESS DIAGRAM FOR TOMATO SAUCE PRODUCTION The process diagram of Tomato sauce production is given above. The entire process consists of three stages: preparatory stage, processing stage and packaging stage. Preparatory Stage: The figure above shows the boiler used in the production process. It is basically a closed vessel which contains water inside. The timber woods are burnt in a furnace and the hot gases from the furnace is used to heat the water and after 100 degrees Celsius the steam is produced and this steam is piped into the kettle for the production process. The raw material such as tomato paste, sugar, water, salt and vinegar should be ready before the production starts RAW MATERIALS FOR PRODUCTION STEAM JACKETED KETTLE FOOT MILL EQUIPEME NT FILLING SECTION BOILER
  • 7. 7 Processing stage: Steam-Jacketed Kettle is similar to the double boiler and it is made up of stainless steel. It is designed in such a way that it contains both an inner and outer steel wall and the steam from the boiler is released into this space. The kettle has a maximum capacity of 1000 kg. The temperature inside the kettle is maintained at 220 degree Celsius. The tomato paste, sugar, salt and water are added to the kettle and it is blended and boiled up for 30 minutes. Then we get a threefold concentrate that is the entire product is concentrated to 28 to 30 percent solids in which 12 percent are tomato solid. After 30 minutes the sauce is passed into foot mill in order to crush the lumps and make it finer. Filling stage Swan Pack’s filling machine is used in packing/filling stage. The hot tomato sauce is filled into clean and dry bottle, crown capped and stored in the room temperature to cool. The tomato sauce
  • 8. 8 is filled into 1 litre, 750ml, 500ml, and 250ml bottles. The filling machine has the capacity to fill around 15000 bottles per day. POTENTIAL CAPACITY, IMMEDIATE CAPACITY AND EFFECTIVE CAPACITY Potential capacity of the firm is: 18000 bottles per day Immediate capacity of the firm is: 12000 bottles are permanently stored in the case of an emergency. Effective capacity of the firm is:15000 bottles per day PRODUCTION PLANNING SYSTEM The production planning system is same as that we discussed in the class. The production plan consists of planning, routing, scheduling and dispatching & follow-up. Planning: In this competitive market planning plays an essential role. The Fruitoman’s started their business as pineapple products manufacturing units. Now they have around 100 of products the main reason behind this success is the proper planning. They planned in advance to make a variety of new products, they planned how to do it, what technique they have to use, and who is the one to lead from the front. Routing: Routing involves the decision regarding production layout. Selection of the appropriate path for transforming the raw material into finished. So they can reduce the lag time as well as the cost of production. Scheduling: The Fruitoman’s has a wide variety of products, and they make the products based on the orders they get. A scheduling chart is prepared based on what product they have to produce and by how much amount. Dispatching& follow-up: Once the route sheet and schedule charts are ready, then it’s time to start producing the product. The top authority release order to start the production in the form of dispatch. The follow-up is done every day to check out the working progress and to ensure whether the production meets the planned performance.
  • 9. 9 MODERN PRODUCTION MANAGEMENT METHODS  Materials Requirements Planning (MRP)  Total Quality Management (TQM)  Optimized Production Technology (OPT)  Just-in-Time (JIT) TYPES OF JOBS, JOB SCHEDULING AND APPLICATION OF STANDARD TIME The types of job involved in the production are as follows: Preparatory stage: In this stage the procurement of raw materials which is managed by a supervisor and 3-5 labours. Since the production depends on the amount of the order, the time taken by this job can be varied. Processing stage: In this stage the raw materials are mixed into a kettle for processing, under the presence of an experienced employee and two labour. It takes 30 minutes to complete this job. After that the sauce passes through the foot mill to crush the lump pieces and make it finer, it is done with the help of 2 labours and require about 10 minutes. Filling stage: The filling stage is fully automated so it requires fewer employees. It takes only seconds to fill the sauce in bottles. And the process is monitored by less than 3 labours. Packing stage Packing stage requires around 5-6 employees because the crown corked is done manually and it takes around 10-15 second to crown capped 1 bottle. CONSTRAINTS IN THE PRODUCTION PROCESS  Transportation problem: tomato paste is being used for the production of tomato sauce. And this tomato paste is imported from Karnataka through roadways, during the transportation strike days the load may delay and it resulted in the stoppage of the entire production
  • 10. 10  Power supply problems: The plant is located near to residential area. Frequent power failures occur in this region because of this the company has to depend more on generators to carry out the production process and it interrupts the production process.  Availability of raw material: as I told earlier tomato paste is one of the key ingredients used in the production, tomato is basically a warm crop and the temperature below 16 0C and above 27 0C is not suitable for tomato cultivation. And it will result in a shortage of tomato paste in production during winter season. SUGGESTIONS FOR IMPROVING PRODUCTIVITY The company can improve productivity by using various production management methods. One of the methods I suggest the implementation of SAP software in the organization. As Fruitoman’s is producing diversified products it will be really beneficial if they use SAP software. It provides a common centralised database for all the applications running in the organization. Some of its applications are Product Lifecycle Management (PLM), Human Resource Management Systems (HRMS), Supply Chain Management (SCM), Advanced Planner and Optimizer (APO). One of the main advantages of using SAP is the integration of all the activities. It helps in cost reduction, if the company can reduce the production cost it will increase the productivity as well as the profit of the firm. By using the SAP the accuracy level in doing things shows more than expected results. Second method I suggest is to use quantitative method in demand forecasting rather than depending on qualitative techniques. The qualitative techniques may not always be true because it is mainly based upon facts rather than scientific evidences. By using quantitative methods such as Trend projection methods, exponential smoothening method, moving average methods the firm could forecast the demand accurately. If so that they could meet market demand without any type of congestion, thereby improving the overall productivity. The third method I suggest is a complete automation in the production process, some people show reluctant to work in unpleasant condition. The boiling of tomato paste in kettle produces a foul smell which makes it hard for employees to be near around that place this can be overcome by using complete automation technique. The automation helps in eliminating the employees from drudgery which motivates and encourage the employees resulted in job satisfaction and organizational commitment, ultimately leads to increase productivity of employees as well as the firm.
  • 11. 11 REFERENCE Mr. GEORGE THOMAS Director of Fruitoman’s group