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PRODUCTIONS MANAGEMENT

BISLERI INTERNATIONAL
PVT.LTD

By-

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oBjectives of the project

1. The project will helped us to understand how different departments in production process
works.
2. We will come to know how to do effective management of inbound logistics and
outbound logistics, which in turn helps in bringing down the cost for the organization.
3. With the help of this project we would come to know different stages of production. i.e.
inputs, conversion subsystem and finished goods stage.
4. To understand how and what types of machines are used while production
5. To understand what are the factors which is to be considered while selecting the plant
layout.
6. To do the ABC analysis of Bisleri inventory.

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Table Of Content

Sr.No Particulars Page


No

1. About the Industry

2. About Bisleri

3. Departments in M/s Parle Bisleri Pvt. Ltd.

4. Production System Model

5 Production Process
6 Planning for production function
7 Plant Location
8 Plant Layout
9 Principles of Plant Layout
10. ABC Analysis
12. Conclusion

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About the Industry

Corporate control over water and water distribution in India is growing rapidly: the packaged
water business is worth Rs 1,000 crore, and it's growing at a huge 40-50% annually. Around
1,200 bottling plants and 100 brands of packaged water across the country are battling over the
market, overdrawing groundwater. Bottled water, one of India's fastest-growing industries, is a
business built on the foundation of bad governance, inequity and exploitation. It is Hard to
believe, but its true. Around 1.2 billion people worldwide lack access to clean drinking water.
Today, there are more people in the world's hospitals suffering from waterborne diseases than
any other ailment.. Providing safe drinking water is the responsibility of the state. That they are
failing miserably is evident from the fact that over 1,600 Indians reportedly die every day
because of waterborne diseases. Despite these astounding figures, the Indian state has literally
washed its hands of the responsibility of providing clean drinking water to its citizens.

Multinational corporations would have us believe so. And the reason is not hard to find: along
with imported water treatment technology like activated carbon and ultra violet (UV)
disinfection (Aquaguard), reverse osmosis (Reviva) and resins (Zero-B), the water treatment
market is estimated to be worth around Rs 700 crore. According to the Bureau of Indian
Standards, there are 1,200 bottled water factories all over India (of which 600 are in the state of
Tamil Nadu). Corporate control over water and water distribution in India is rapidly growing. As
globalisation opens up opportunities for private players, investing in water and/or manipulating
water scarcity makes increasingly good business sense for corporations.

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About Bisleri

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two
varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was
started by Signor Felice Bisleri who first brought the idea of selling bottled water in India.

Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles
underthe brand name 'Bisleri'. Later Parle switched over to PVC non-returnable bottles & finally
advanced to PET containers.
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Presently we have 8 plants & 11 franchisees all over India. command a 60% market share of the
organized market. Overwhelming popularity of 'Bisleri' & the fact that we pioneered bottled
water in India, has made us synonymous to Mineral water & a household name. When you think
of bottled water, you think Bisleri.

Bisleri has developed 8 unique pack sizes to suit the need of every individual. They at present
have 50ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L,
20L which are the returnable packs.
Bisleri Water is put through multiple stages of purification, ozonised & finally packed for
consumption. Rigorous R&D & quality controls has made us a market leader in the bottled water
segment. Strict hygiene conditions are maintained in all plants.

Departments in M/s Parle Bisleri Pvt. Ltd.

“M/S Parle Bisleri Pvt. Ltd.” It is a medium scale company and it manufactures and sells
“Packaged Drinking Water” The different departments of this company are: -

1. Filler Department: -

This is the plant in which the bottles are filled and packed under strict levels of hygiene and
safety as per the EU norms.

2. Plastics Department: -

• Caps Section
• Preforms Section
This is the Department where pet material is processed to make preforms using 6 Ekou
injection moulding machine of 180 and 330 tonnes as per the requirements of the preform.
Preforms are available in various sizes according to the size of bottle.
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Bottle Sizes Preform Sizes
1 ltr 21gms
500 ml 17gms
250 ml 15gms
1.5 ltr 32 gms
2 ltr 34 gms
5 ltr 75 gms
20 ltr 710 gms

Caps are made from a mixture of HDPE and LLDPE using 4 Cincinnati Milacron and 2 Windsor
injection-moulding machines.

3. Water Treatment Plant: -

Over here the Raw water from the bore wells is treated in several stages before it is filled thus
making it very pure for human use.

4. Blowing Department: -

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Over here the preforms are blown into bottles. This department has various manual and fully
automatic stretch blow moulding machines.

5. Water Testing Laboratory: -

The water-testing lab ensures that the water safety standards are maintained as per the BIS and
EU norms.

6. HORAI Department (Grinding Department): -

All rejected bottles, caps, jars and lumps of plastic material are sent over here for grinding in
order to re-use it. Before it can be grinded it is very carefully segregated in different groups.
They also buy plastic bottles from outside and grind them for resale. It is a fully automatic plant

7. Stores Department: -

All the stock of finished, semi-finished goods are stored over here and are dispatched as per the
orders. Up to 50 tonnes of stock are dispatched in a day.

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CONVERSION
INPUTS OUTPUT
SUBSYSTEM

Environment
Legal FDA, BIS, Bisleri
BMC
Bottles
Technological Physical
automatic inj.
Mldg. m/c, auto
blow mldg. m/c.
Manufacturing

Market
Locational Services

Competition with
Aquafina, Kinley Transportation
etc.
Customer Desire
50 m.l., 100 m.l., Exchange
25 litres
Primary and low
Resources
price
Services
Material: - Wholesaler
Refill
Water from bore wells
HDPE, LLDPE, PET.
Other Private
Services
Personnel: -

Plastics Engineering,
Utility
Production Managers.

Capital Assets: -

Auto Filling Machine,


Blow moulding
machine, recycling Control Subsystem
machine

Sealed bottle, FDA, Quality


Control 9
Production System Model

Inputs

Environment

1) Legal: -
Parle Bisleri being a company involved in selling water which is fit for consumption it
comes under the FDA, it also follows the standards of BIS. Therefore ensuring its quality
and the public perceive the right image of being 100% safe.

2) Technological: -
Parle Bisleri believes in keeping up with times and they are trying constantly to increase their
share market. This is the reason Bisleri has automatic Injection Moulding Machine in order
to increase their production capacity 3 folds. Bisleri already has 2 automatic Blow Moulding
Machines.

Market

1) Competition: -
Parle Bisleri Pvt. Ltd. 1992 at that time Bisleri enjoyed almost a complete monopoly.
Recently however, companies like Pepsi and Coco cola have entered the market to give
tough competition to Bisleri by introducing brands like kinley and Aquafina.

2) Customer desire:-
Bisleri has become a household name to the extent that people instead of calling it packaged
water are calling it Bisleri.
-

Primary resources: -
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1) Material: -
The raw water is obtained from bore wells. The bottles are made from polymers such as
HDPE, LLDPE and PET.

2) Personnel: -
Bisleri requires mostly skilled and semi skilled labourers. The skilled labourers include
production and plastic engineers.

3) Capital assets: -
Bisleri has got 14 injection moulding machines, 2 automatic blow moulding machines and 4
semi automatic blow moulding machines. It has also got 2 plants located side by side for
production purposes.

Conversion Subsystem

1) Physical: -

Parle Bisleri Pvt. Ltd is considered to be a manufacturing unit as it manufactures the semi
finished product i.e. bottles and caps and also produces the finished products.

2) Exchange services: -

The distribution network of Bisleri is maintained by its distributors and wholesalers. To


supply to big corporates they have their own distribution network.
3) Outputs: -

The final output of whole manufacturing process is we get clean pure drinking water in
bottles of different sizes according to the needs of the consumers.

Quality control subsystem


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The motto of Bisleri is “play safe” and Bisleri has implemented every measure to produce the
safest product possible. It has employed measures such as:-
1) The quality of every single raw material that goes into the products are minutely
inspected in order to ensure optimum quality standards.
2) The caps of all the bottles are tamper proof so when the consumer buys a Bisleri product
he ensures that the product is untampered.
3) The production process of Bisleri is such that a human hand never touches a Bisleri
product.
4) There is 24 hours quality checking so that no defective product reaches the consumer.

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Production Process

1) The raw material (HDPE, LLDPE, PET) that is stored in the warehouses is transported to the
processing plant near by.

2) In the cap department where caps are produced. HDPE and LLDPE which are in the form of
granules are emptied into the hopper of the injection moulding machine with a colorant and
the caps are produced of the characteristics green colour of Bisleri. The caps that are
produced are automatically packed into cartons. This semi finished product is transported,
after quality testing has been done, to what is called the filling department. In the caps
department there are 7 injection moulding machines

3) In the preforms department which is located in next to the cap department it is located in the
same plant. In the preforms department PET material is used to manufacture preforms which
are semi finished bottles. They are produced by using injection moulding machine. After the
preforms are tested by the quality assurance department, they are packed in cartons and
transported to the filling department. In the preforms department there are 7 injection
moulding machines

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4) In the blowing department the preforms which are obtained from the preforms department
are blown to form bottles. There are a total of 2 fully automatic blowing machines which are
directly connected from to the filler. There are about 5 more semi automatic and automatic
blowing machines which are producing bottles everyday.

5) The filling department is situated in a closed and a controlled environment to maintain the
hygiene. The bottles are transported from one operation to another on conveyor belt. The
bottles are directly loaded onto the conveyor belt, first bottles passed through UV light to
kill the bacteria, then the bottles are cleaned by pure water, then the bottles are filled to the
desired quantity and then they are automatically capped, then the sticker is put on the bottles
and the price, manufacturing date, batch number are printed by spraying machine on the
bottle itself, then the bottles pass through a screen of white light where workers manually
check all the bottles for any defects, lastly they are packed in cartons and stored in the
warehouse ready for transportation to its destination.

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6) All the waste bottles are separated and they collected and send to the recycling department
for recycling where they are cleaned, grinded to a coarse powder which is again used in the
manufacturing process thus reducing wastages and being environmentally friendly. This
plant is also used for recycling of outside PET bottles and thus earning extra revenue.

7) In the water treatment plant the water form the 8 bore wells are stored in the Chlorinated
Raw Water Tank (CRWT), the chlorine in this tank is used to kill the germs, after that the
water goes through the sand filter where the solid wastes are removed, after this the water
passes through the carbon filter to remove the foul odour, then the water passes through the
Ultra Violet Light Chamber where the Water passes through it to cure the bacteria and
viruses, then the water passes through a reverse osmosis process to remove the dead
membranes of bacteria and viruses, then the water is passes through the silverisation
chamber to give the sparkle to the water, then the water passes through the ozonisation
process to remove the chlorine and to remove the and its stale odour.

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Raw Chlorinated Raw Sand
Water Water Tank Filter

Carbon U.V. Filter Reverse


Filter Osmosis

Silverisation Ozonisation

Water Purification Process of Parle Bisleri Pvt. Ltd.


Planning for production function

1) Material

Without materials there can be no output. Material input may account for as much as 80%
of the value of the output. This fact indicates the importance to be attached to material
purchasing.

The materials required for the production process of packaged drinking water are: -
A) Raw water
B) HDPE
C) LLDPE
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D) PET
E) Recycled PET granules
F) Cartons
G) Stickers

2) Methods

This function analyses possible methods of manufacture and tries to define the best method
compatible with a given set of circumstances and facilities.

The method for producing packaged drinking water starts with the production of bottles
and caps. After that the semi finished products are transported from the cap and performs
division to the filling division where the caps are added to the filling machines and the
performs to the corresponding size of the bottle, these bottles are then added to the
conveyor belt to complete the process of filling the bottle automatically. After the bottle is
filled to the desired level the bottle is automatically capped and then sticker is put on the
bottle the price is printed through a spray gun. Then it is visually inspected and after that
put into cartons readily for delivery.

3) Machines and Equipment

Industrial production is closely related to available production facilities coupled with


appropriate machine and equipments. Considerations:

1) Equipments can be purchased fresh or second hand


2) Equipment can be lease or rented
3) Equipment can be fabricated within the plant

Machines used in Bisleri are injection moulding machines for the production of preforms
and caps. For making bottles blow moulding machines are used to blow the bottles to the
required size and shape of the bottles by the use of moulds. Automatic fillers are employed
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for the purpose for clean and efficient filling of the bottles with the least amount of
rejection.

4) Routing

The determination of where each operation on a component part, subassembly or assembly


is to be performed results in a route for the movement of a manufacturing lot through the
factory.
The route of the production process is designed in such a way that in process transportation
is at a minimum. The plant layout is in such a way that it is easy to transport the semi-
finished product. First comes the semi finished product then it is blown filled and sealed,
now ready for delivery.

5) Estimating

. Estimating is a special type of forecasting.


Bisleri being an old company has being estimate the demand for its production due to its
past experience it is able to estimate the demand. As a general rule the demand for Bisleri
is very less but the production of Bisleri continues as the demand in summer is so high that
the production cannot keep pace with the production requirement. They also take help of
market surveys and past trends to determine the production requirements.

6) Loading and Scheduling: -

Both scheduling and loading help in production planning. Scheduling refers to the
preparation of a time table for various operations covering the beginning and finishing
times of various operations. Loading refers to the time gap for various work loads booked

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in advance for different products. Thus scheduling guarantees the observation of delivery
times and loading guarantees the maximum utilisation of the available facilities.

According to the schedule of the delivery and amount to be delivered and where they are to
be delivered the trucks are loaded to be sent to wholesalers and retailers

7) Dispatching: -

Dispatching refers to the actual issuing of orders for performing operations in different
sections or units. It involves the following steps:
1) To make raw materials, equipments, tools and machines available to the worker
2) To issue orders and instructions in writing about the method of work and time for
completion
3) To note start and finish time of each process
4) To evaluate the performance and progress of production schedule
5) To introduce suitable changes in schedules

Distribution of the bottles is done using trucks of different sizes if the deliver has to be
done in the city the smaller trucks are used which are of Eicher. If the delivery has to be
made outstation then the larger Tata Trucks are used. The normal distribution to the
distributors within the city the delivery takes place 7:00 a.m. every morning except Sunday.

8) Follow Up: -

The effectiveness of any production control system is dependent upon timely and adequate
information regarding actual performance. This information usually originates with the
dispatcher..

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After the delivery has been made the marketing people visit the retailer, wholesalers,
distributors for their complaints if any written and left for the consideration of their
superiors.

9) Inspection: -

Inspection is an integral aspect of quality control programme. It helps in maintaining and


raising the quality of products. Inspection judges production against established standards.
There is a very efficient quality control process followed by Parle Bisleri Pvt. Ltd. it
inspects everything from the water to the bottles very regularly, in fact it is one the main
issues in quality control of the company. The first thing the quality control head does is to
check the previous days rejection and to finds its individual reasons of rejection and steps if
required.

10) Evaluating: -

Evaluating is the important link between control and future planning. Evaluating function
provides a feedback mechanism on a longer term basis so that past experience can be
evaluated with a view to improve use of methods and facilities.

Operations of Parle Bisleri are inspected by FDA (food and drug associations) Bisleri also
follows BIS (Board of Indian Standards).

Plant Location

An ideal plant location may not be enough by itself to ensure the success of the enterprise but it
surely ensures the smooth running of a factory The need for selection of the location may arise
when a business is started or for the purpose of expansion or for opening branches etc.

Analysis of Bisleri on the location of its Factory

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Analysis of a factory is carried on the basis of following steps

A) Deciding on domestic or international location

Parle Bisleri Pvt, Ltd is a national company therefore the plant will be located within the country.

B) Selection of Region

1) Availability of Raw Material: -

a) The main raw material for any bottling plant is water the location that the has
been selected has 4 bore wells on site enough to supply water for whole year
round such that the company does not have rely on BMC for its water.

b) The other raw material it requires is HDPE, LLDPE for the production of caps.
PET for the production of bottles, the granules of these are easily available
because all the polymer manufacturing companies i.e. RELIANCE and IPCL have
distributors in MUMBAI.

2) Nearness to the market: -

Mumbai is one of the biggest city in India and the market in Mumbai is very large due
to the fact the people here are more hygiene conscious. The factory is located right next
to the western express highway therefore making it easier for it to transport the finished
goods to the different parts of the city as well out station as well as out state.

3) Availability of power: -

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Parle Bisleri is located in a industrial area therefore there is abundant power available
Parle Bisleri gets it power from TATA Power they have provided a substation to meet
the needs of the factory.

4) Transport facility: -

Bisleri has a fleet of trucks to meet the deliver needs of the company they Eicher trucks
and they also transport the finished goods and semi – finished goods out of the state as
well as within the city. The fleet is of about 10 trucks.

5) S-

C) Selection Of community

1) Availability of labour: -

Parle Bisleri Pvt. Ltd. is located in the city of Mumbai which is a metropolitan city it
has abundant skilled, semi-skilled and manual or unskilled labour.
2) Civic Amenities for workers: -

Parle Bisleri is located in the heart of Mumbai city and it is located very next to western
express highway which is connected to every part of the city and Mumbai has excellent
public transport it also has excellent canteen facilities for workers which give food to
the workers at a subsidized rate.

Plant layout

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The subject plant layout refers to the arrangement of machinery, equipment and other industrial
facilities for the purpose of achieving the quickest and smoothest production at the least cost.

Bisleri plant at Andheri (E) has two different plants where the complete production takes place.
In the one plant the cap and the bottle preforms are manufactured and the other plant has the
place for preforms to be blown into bottles and the filling of the bottles is done. This building
also has the purification process of the water which has to be filled.

E
I S
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Plant outlet of andheri (E)Nunit R
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N
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TRANSPORTATI
ON

ADMINISTRATO
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SECURITY S
CABIN
T

W A S T E -D E P T

ENTERANCE

Analysis of Bisleri on the layout of its Factory

B) Type of Industry: -

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1) The type of industry and the method of the manufacturing process exercise a
significant influence on plant layout.

Bisleri falls under the category of conditioning industry. A conditioning industry is


industry which is involved in the change of form or the physical properties of a substance
in this case water. Also:

Bisleri falls under the category of a continuous industry. A continuous industry is an


industry that manufactures a product uninterrupted of standard size.

C) Nature of plant location: -

the location of the plant determines the mode of transportation, depending upon the
distances from the source of raw materials and market to the plant.

Parle Bisleri Pvt, Ltd. is located in Andheri (East) in Mumbai. The plant is located on a
large plot near the western express highway. The terrain of the place where it is located is
that it is in step form i.e. the full plot is not at the same level, this helps in the
transportation of semi-finished product to be transported to the filler.

D) Machinery: -

The type of product, the volume of its production, the type of process and management
policy determines the size and type of the machinery to be installed which, in turn,
influences the plant layout. Also the fixed and stationary parts of the machines should
also be taken into considerations while designing the plant layout.

In Parle Bisleri Pvt. Ltd. the machines are laid with many considerations such as: -

1) There is enough space for the repair and maintenance of the machinery can be done
easily.

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2) The machines are placed in such a way that there is enough place for moving and
relocation of the machines

3) There is enough space for workers to move about the machines and work
comfortably.

E) workers:
The layout designer should also consider the type, position and requirements of
employees. If women workers are employed, the layout must be planned after keeping in
mind their particular requirements. The position of employees, that is whether they
remain stationary or moving, also influences the layout.

Parle Bisleri Pvt. Ltd. has provided its workers with many facilities such as: -

1) Canteen conveniently located and providing hygienic food at concessional rates.

2) Toilets for men and women conveniently located and of sufficient number maintained
in hygienic conditions.

3) Due to the location of the plant it is very convenient for all the workers to reach work.

ABC Analysis
One of the widely used techniques for control of inventory is the ABC (always better Control)
analysis. The objective of ABC control is to vary the expenses associated with maintaining
appropriate control according to the potential saving associated with a proper level of such

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control. The ABC approach is a means of categorising inventory items into three classes ‘A’,
“B” and “C” according to the potential amount to be controlled.

Once the inventory is classified, we have a form base for deciding where we will put our effort.
Logically we expect to maintain strong controls over the “A”, items taking whatever special
actions needed to maintain availability of these items and hold stocks at the lowest possible
levels consistent with meeting demands. At the other end of the scale, we cannot afford the
expenses of rigid controls, frequent ordering and expediting, because of the low amounts in this
area. Thus with the “C” group, we may maintain somewhat higher safety stocks, order more
months of supply, expect lower levels of customer services or all the three.

The steps to be followed for developing ABC analysis: -

1) List each item carried in inventory by number or some other designation.


2) Determine the annual volume of usage and Rupee value of each item.
3) Multiply each items annual volume usage by its rupee value.
4) Compute each items percentage of the total inventory in terms of annual usage in Rupees.
5) Select the top 10% of all items which have the highest rupee % and classify them as “A”
items.
6) Select the next 20% of all items next highest Rupee percentages and designate them “B”
items.
7) The next 70% of all items with the lowest rupee percentage are “C” items.

ABC analysis of Bisleri’s Inventory

S.R. ITEMS COST % OF GRADE


NO. THE
TOTAL
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COST
1 Nuts 500 0.25 C
2 Bolts 500 0.25 C
3 Screws 500 0.25 C
4 O-Rings 500 0.25 C
5 Washers 600 0.3 C
6 Blades 100 0.05 C
7 Switches 1300 0.65 C
8 Nozzle Filters 50000 25 A
9 Ceramic Heaters 15000 7.5 B
10 Clamps 6000 3 B
11 P.l.C. 90000 45 A
12 Baffles 1000 0.5 C
13 Teflon Electrical Wires 2000 1 C
14 Sensors 6000 3 C
15 Sprockets 9000 4.5 B
16 Teflon Gears 4000 2 C
17 Stretch Rods 3000 1.5 C
18 Pressure Gauges 10000 5 B
TOTAL ITEMS = 18 COST = 2,00,000

ITEMS A ITEMS B ITEMS C


All the remaining 12
Items 8 and 11 Items 9, 10, 15, 18
items
10% of 18 items 20% of 18 items
70% of 18 items
70% of Rs. 2,00,000 20% of Rs. 2,00,000
10% of Rs. 2,00,000

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conclusion

In conclusion it can be inferred that production management is very important in today’s


competitive world where cost cutting is a norm rather than exception. Production management
provides a science for effective profit maximization and optimum resources utilization.

Bisleri who ahs been in the past been facing tough competition from the other brands has
adopted production management in a big way in order to maintain its lead in the packaged
drinking water market.

By this project we have tried to highlight some of the measure taken by Bisleri in order to
improve its production processes and to show the significance and the benefits of production
management in today’s globalised market

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