Devi Gems

A REPORT ON Study the application of production and operation management concept

DEVI GEMS
Sr. No. 1 2 3 4 5 6 7 Submitted by: Enrollment No. 60 79 84 85 98 106 109 Name Ms. Sarwangi Padsala Ms. Payal Bansal Ms. Priyanka Pal Ms. Priyanka Chugh Ms. Shivali Mori Ms. Srishti Narang Mr. Harsh Upadhyay

SUBJECT: PRODUCTIONS AND OPERATIONS MANAGEMENT(2820006)

Submitted to: Dr. Vijayendra Gupta and Mr. Pratiksinh Vaghela

S.R. LUTHRA INSTITUTE OF MANAGEMENT-750

S.R. LUTHRA INSTITUTE OF MANAGEMENT Page 1

Devi Gems

Table of Content

Sr. No.

Title BRIEF INTRODUCTION Company Details History About the Products Provision of Resource and work environment Work Environment Objective of Business Company Profile Organisation Structure SWOT Analysis PRODUCTION DEPARTMENT Diamond manufacturing process Structure of production department Process of conversion International assort numbers Plant layout Material handling equipment Classification of Inventories VED Analysis Material receipt procedure Quality management system Quality Policy Reference

Page No. 3 4 5 7 8 8 9 10 11

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20

12 14 15 24 26 29 30 31 33 35 36 37

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 2

Devi Gems
COMPANY DETAIL

DEVI GEMS 6/1347, Matruchaya Building, Jadakhadi, Mahidharpura Surat PH: 0261-2608268 Devi Gems formed few decades ago that diamond shall be an integral part of lives of people, and so they embarked upon this never ending journey of manufacturing very high quality diamond that are most sought after globally with their sparkling quality business acumen, sincerity, and trustworthiness in the way they conduct business have made them a name to reckon in the world of diamonds. Devi Gems is a unique diamond manufacturing company. It was established few decades ago by MR. Mahendra C Shah. Devi Gems is very good firm with good management. Devi Gems is one of the good quality manufacturers of round cut diamond in Surat specialties in Round sizes for D to M in color and FL to I3 in clarity, quantities available in all sizes and supplying to jewellers by ensuring customers are satisfied with quality, reliable supply. Devi Gems has production units at Mahidharpura where it produces polished diamond.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 3

Devi Gems
HISTORY OF DEVI GEMS

Devi Gems started its business of manufacturing diamond with few numbers of bruting machines and about 10-15 employees.. In the year 1992 Ajbani Diamond support and took decision to established small unit of diamond manufacturing. They at the time of starting the unit were not so big. They purchase the rough diamond from local market and produce the diamond in small quantity and sell polished diamond in local market. In 1994 they increased the capacity of the production. All the partners were very hardworking person. With the bless of god, they got lot of success in his life. They started importing the rough diamond from Belgium. In the year 2004, Devi Gems construct a very good facility. Company increased its production capacity to double its previous capacity. Company has the latest laser machine and sawing machine. Today Devi Gems has about 60 employees with good experience.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 4

Devi Gems
ABOUT THE PRODUCTS

Devi Gems is specialist in the following shapes of the Diamond:

Round Cut Diamond

Princess Cut Diamond

Taper Cut Diamond

Marquise Cut Diamond

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 5

Devi Gems

Pear Cut Diamond

Oval Cut Diamond

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 6

Devi Gems
PROVISION OF RESOURCE AND WORK ENVIRONMENT

The DEVI GEMS has determined, provided and is maintaining the infrastructure needed to achieve conformity to fulfill the requirements. Infrastructure includes buildings, workspace and associated utilities supporting services as transport and communication Production process equipment. The DEVI GEMS has following manpower to meet the requirements as stated:

Chairman Managers Employees

The DEVI GEMS is having Production process adequate equipment for the requirements. The Devi Gems has adequate communication facilities like,

Telephone Fax E - mail Computers Intercom phones Internet Services

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 7

Devi Gems
WORK ENVIRONMENT

Tasks are carried out in a suitable and safe environment. Equipment and processes used are proven as adequate for assigned tasks. Equipments are subjected to regular maintenance, as appropriate to ensure continuing process capability. Records are maintained. Continuous attention is given to housekeeping and removal of scrap and waste from the work area. Adequate lighting, ventilation and hygiene are maintained at the work place. Provision of drinking water and toilet blocks is made. Electric wiring, distribution boxes, fire hose boxes etc are periodically checked and kept in perfect working condition. Proper guards are provided on rotating parts of the machinery. Proper security arrangement is made to protect the men and machines and property. CCTV system is installed for monitoring of material and activities. The company is under the process of installing Fire Fighting System under which Fire extinguishers will be made available in sufficient quantity and required types to avoid accidental damage due to fire.

OBJECTIVE OF THE BUSINESS

Provide good quality diamond. To understand and satisfy need of customer. Satisfy customer and increase relation with them. Increase productivity by reducing wastages and maintenance. To follow the rules and regulation related to diamond industries. Increase the quality by maximum use of latest technology. Give opportunity to go ahead to every employee.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 8

Devi Gems
COMPANYS PROFILE

Companys Profile
Company name Company type Business type Product or service Major market No. of employee Certifications Years of establishing Contact Person Address Devi Gems Partnership Diamond Manufacturers, Trader Gems &Jewellery Local and Jewellers 61 People GIA,IGI,HRD Few Decades Ago Milan Mehta 6/1347, Matruchaya Building, Jadakhadi, Mahidharpura Surat. Phone no. 0261 2430243

Vision
We will become one of the leading polished Diamond manufacturers in order to enter the

world market of diamond industry.

Values
We believe customer satisfaction. Human resources are our greatest assets.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 9

Devi Gems
ORGANIZATION STRUCTURE

Owner

Production

Selling

Finance

Human resource

Manager

Sales executives

Manager

Workers

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 10

Devi Gems

Strength:
The company is in good financial condition. The company is in touch with good customer relationship. Low labour turnover ratio. Goodwill of the company is high in the market.

Weakness:
Low Sales turnover. Limited market area i.e. Mumbai and Surat. High maintenance cost. Low growth rate.

Opportunity:
Import and export. Expanding market area. Sales sources.

SWOT ANALYSIS

Threat:
Dollar Prices. Delayed Payments. Bad Debts. Uncertainty in Demand. Government Policies.

New technologies and innovation.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 11

Devi Gems

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 12

Devi Gems
THE DIAMOND MANUFACTURING PROCESS

For hundreds of years the Diamond has fascinated man for its alluring sparkle and physical hardness exceeding all other gems. Formed about 3 billion years ago beneath the the Earths crust by extreme heat, it may be the oldest item you will ever own. Before the rough diamond is transformed into a beautiful piece of jewelry, it must undergo several stages in its production.

MANUFACTURING PROCESS

Diamond manufacturing is a very skillful process. At Devi Gems entire force of artisans is highly skilled. Each artisan is always trying to achieve the best of a given diamond as per the specifications given by the assorter and the planner. The entire process of manufacturing starts with the rough assortment and ends with the stone being polished, from where it goes for assortment & grading.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 13

Devi Gems
STRUCTURE OF PRODUCTION DEPARTMENT

MANAGER

ASST. MANGER

EXECUTIVE MANAGER

WORKERS

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 14

Devi Gems
THE MANUFACTURING PROCESS CAN BE CLASSIFIEDS INTO FOLLOWING PROCESSES:

Procurement of rough diamonds Rough assortment Planning & marking Cleaving Sawing Bruting Polishing \

PROCESS OF CONVERTING ROUGH DIAMONDS INTO FINISH GOODS

Devi Gems Company import rough diamonds from Belgium South Africa. Processes of manufacturing of diamonds are as follows:

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 15

Devi Gems
ROUGH ASSORTMENT

This is a very important department, as a diamond begins its journey of being transformed from a rough to a polished stone from here onwards. The work of this department is to check the rough stone and to determine its properties such as purity, color, & size etc. i.e. 4'C's namely color, clarity, carat, cut. Keeping all these 4Cs in mind they give the rough stone a grade.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 16

Devi Gems
MARKING

This is also one of the most important phases of the entire manufacturing process. It can also be known as the brain department of the entire process. Marking is done after examining each rough diamond to decide how it should be cut to yield the greatest value. The shape of the rough diamond and the number and location of inclusions, or blemishes, are first considered. Since the crystalline structure of diamond causes it to have a grain (called cleavage), it is critical to plan for the facets of the diamond to be made in the correct direction. Taking these factors into account, the planner decides how the diamond should be cut and marks it to indicate where the stone should be cleaved or sawed.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 17

Devi Gems
CLEAVING

Here the expert has to decide whether the marked diamond should be cleaved or sawn as per the mark and planes of each individual diamond. When the stone is very large and valuable, cleaving it is a critical process, because a mistake by the planner or the cleaver can shatter the diamond. The cleaver's job is to cut the diamond into two pieces to bring out the best angles and establish what the final cut will be. Cleaving is done by hi tech laser machine marking and then by chisel and hammer. However, some stones have too many stress points and might fragment if cleaved, so they must go to the sawyer. This process is extremely meticulous and time-consuming.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 18

Devi Gems
SAWING

If the diamond needs to be sawn, blades or laser machines do it, which is the latest technology in sawing. The saw used in diamond processing is a paper-thin disk of phosphor bronze that rotates on a horizontal spindle at about 4,000 rpm. The diamond is clamped so it rests against the blade and is sawed for several hours, depending on the size of the diamond. Since diamond is the hardest substance on earth, it can only be cut by another diamond. Therefore, diamond dust is used on the saw, as well as the actual diamond dust generated by the crystal being cut. After the process of cleaving / sawing the diamond is sent back to the assortment department for checking and is then passed to the next process, BRUTING.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 19

Devi Gems
BRUTING

In this department, bruter give different shapes to the diamonds as earlier planned, in such a way that the polisher can achieve maximum yield. Normal bruter, Maxi bruter, advanced bruter as well as laser BRUTING machines are used in this process. The bruter has to take its utmost care of the diamond at this process so that it does not break. Also in this process the bruter has to leave as much of natural skin on the piece of diamond as possible. This is because one can check out that the weight loss of the diamond in this process is not more than required. In the whole process of BRUTING the main aim of the bruter is to give a shape to the rough diamond in such a way that its optimum effect can be achieved by the polish, without any extra weight loss than required.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 20

Devi Gems
HELIUM POLISH

The Helium Polish diamond scanner is a new device for cutting factories, laboratories and dealers. When a diamond is scanned with Helium an accurate 3D-model is constructed for the angle of inclusion. This 3D model allows accurate visualization and realistic images to be produced that can show symmetry and to use the output with various systems of appraisal. The program creates user-defined reports including that you can make with whichever selection you choose from the information in the detailed Helium report.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 21

Devi Gems
POLISHING

After being bruter a diamond passes to the polishing department where the final work of faceting is done. Polishing means the process of giving the diamond its final look. The fine diamond dust acts as an abrasive to polish away small imperfections and make the surface of the stone perfectly smooth. Here the artisan has to be very careful at all stages as even a small mistake done by him can make the diamond look poorer than what it might have looked had it been cut properly. This is the last step in the manufacturing process of the diamond.

THE POLISHING IS DONE AS PER FOLLOWING STEPS: Bruiting

Table

Pavilion

Facet

Crown

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 22

Devi Gems
READY DIAMOND

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 23

Devi Gems
INTERNATIONAL ASSORT NUMBERS

FL (Flow less) IF (Internal flow less) VVS1 (Very very slight inclusion) VVS2 (Very very slight inclusion) VS1 (very slight inclusion) VS2 (very slight inclusion) SI1 (slight inclusion) SI2 (slight inclusion) SI3 (slight inclusion) I1 (inclusion) I2 (inclusion) I3 (inclusion)

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 24

Devi Gems

Flawless (FL) - No inclusions or blemishes are visible to a skilled grader using 10

magnification Internally Flawless (IF) - No inclusions and only blemishes are visible to a skilled grader

using 10 magnification Very, Very Slightly Included (VVS1 and VVS2) - Inclusions are difficult for a skilled

grader to see under 10 magnification Very Slightly Included (VS1 and VS2) - Inclusions are clearly visible under 10

magnification but can be characterized as minor Slightly Included (SI1 and SI2) - Inclusions are noticeable to a skilled grader using 10

magnification Included (I1, I2, and I3) - Inclusions are obvious under 10 magnification and may affect

transparency and brilliance.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 25

Devi Gems
PLANT LAY OUT

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 26

Devi Gems MEANING

Plant layout is physical arrangement of main production department technical utility, offices & location of various machines within different departments. Plant layout designed is the process of designing plant layout while new manufacturing facility is being created. Thus plant layout designed is strategic function. This activity starts at the time of plant location selected & land is purchased.

FACTORS AFFECTING PLANT LAYOUT DESIGNING ARE AS FOLLOWS:

WHAT IS TO BE MANUFACTURED?

There are certain products, which are manufactured on mass production basis in continuous production system i.e. cement, electricity generation, petroleum refinery, sugar factory, diamond industry are such example such product are manufactured with plant layout which is called PRODUCT LAYOUT. Many other businesses like readymade garments manufacturing, stationary manufacturing, heavy machinery manufacturing, and special manufacturing for customers, they are manufacturing very large product mix. They work as per PROCESS LAY OUT.

Devi Gems Company is manufacturing Diamond. This company is using Product layout.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 27

Devi Gems
HOW MUCH TO MANUFACTURE?

Devi Gems companys plant capacity decides size of machines, no of machines, size of go down, number of workers etc. These factors have direct impact on Plant Layout designing.

HOW TO MANUFACTURE?

Manufacturing technology or types of machines directly affect plant layout each machine has special design & size. This decide how much area is required for various machines with change in manufacturing technology utilizes required by machines which keep changing. Devi Gems manufacture with the help of machines, human mind, technologies etc.

NATURE OF MATERIAL

There are certain raw materials, which are value-occupying item. In Devi Gems raw material is rough diamond. Diamond requires safety storage area. This requires selection of place and area. Diamond is not dangerous for nature.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 28

Devi Gems
MATERIAL HANDLING EQUIPMENT

Material handling means control on movement of material through storage and production and to the movement of the finished production. Material handling is concerned with the internal movement and material within a business unit. Material handling is concerned with internal transportation of material. Different machines, different departments are required. In, Devi Gems there are main materials like katora,dies,grinder(ghanti) etc mainly used in Material Handling Equipment.

TYPES AND CLASSES OF MATERIAL HANDLING EQUIPMENTS

PACKET

There is rough diamond is the main and only raw material. For diamond there is the packet of paper in which diamond is handled. In the upper side of the packet weight, shape, lot no., piece, etc. are written. The sample of this packet is as follow:

POLYTHENE POUCH WITH ZIP

If the diamond is in the big lot than it is handled in such polythene pouch which have zip by which we can pack it. This pouch is mainly used during import and export.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 29

Devi Gems
COURIER AND PRIVATE LOGISTIC SERVICE

Company use private logistic system in transfer of money and diamond from one branch to another branch. Courier service is useful to transfer documents, cheque, reports, etc.

PLASTIC TRAY

Plastic tray is useful to handle the material like die, crown, sign pen, eye-glass, tea, coffee, lead weight, etc. small items used during production.

CLASSIFICATION OF INVENTORIES

Classification of inventories is done in three types. The three types of inventories are as follows:

ABC analysis VED analysis. FSN analysis.

DEVI GEMS classifies its inventories according to VED analysis.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 30

Devi Gems
VED ANALYSIS

It ignores relative important item in production process for this purpose another method of classify inventory is called VED analysis. VED analysis is recommended according to this classification inventory can divided in 3 groups. V- Vital item E Essential item D - Desirable item

VITAL ITEM

Vital item are those entire item without which production will instantly stop. In this industry vital item is rough diamond. Without rough diamond production will instantly stop. Diamond industry some machinery is very important. For e.g. Grinder, Dopes, laser machine, roundest machine etc. Without this machinery tools production process will instantly stop. So this machinery tool is also vital item.

ESSENTIAL ITEM

It may be possible to do production without essential item but rate of production may less considering without this item as result of that cost of manufacturing increase. In this industry some machinery tool& some machinery are essential item. Without this machinery & machinery tools production is possible. For e.g. maxi machine, computer, generator etc.
S.R. LUTHRA INSTITUTE OF MANAGEMENT Page 31

Devi Gems
DESIRABLE ITEM

These items increase connivance in doing production. They may reduce wear & care of tear of machinery in production nothing doing to happen. If such item are not available for one or two days. In this industry desirable item is stationery item, chemical, instrument cleaning, cleaning cloth etc. Without this item production is possible. This type of item is not necessary for production.

Vital item

Essential item

Desirable item

Rough diamond Eye glass Sign pen Sign remover pen Acetone

Sarin advisor Personal Computer Personal Software

Oil Grease Cleaning Powder

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 32

Devi Gems
MATERIAL RECEIPT PROCEDURE

When material comes to Devi Gems with challan, at the gate security guard check the quantity of material, give the entry in inward register and put stamp on challan. After done this process security guard send to this material which departments want material?

MATERIAL RECEIPT FORM Devi Gems Material Receipt note

M.R.N.:

S.R. NO:

M.R.N. Date:

Location:

Receiver initials:

Reference p.o.:

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 33

Devi Gems
S.R. NO. ITEM QUANTITY QUALITY STATUS REMARKS

MATERIAL ISSUE FORM Devi Gems Material Issue Notes

M.I. N No:

Date:

Issuers Initial:

Department:

S.R. NO.

ITEM

REQUIRE QUANTITY

ISSUE QUANTITY

REMARK

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 34

Devi Gems
QUALITY MANAGEMENT SYSTEM

The DEVI GEMS has established documented, implemented and maintains a quality management system and continually improves its effectiveness in accordance with the requirements of this standard. To achieve this, the DEVI GEMS has identified the processes required for the quality management system and their application throughout the Organization. Sequence and interaction of these processes are determined along with the criteria and methods needed to operate these processes effectively. Management to support the operation of all processes provides the required resources and information.

QUALITY CONTROL GUIDELINES

Quality control guidelines of Devi Gems are as follows:

Checking of rough diamond quality Checking of semi finished articles after stages of production this is called in process. To check quality of final product To identify reason of quality problem & solve them. To improve quality standard by comparing organizations quality standard with competitive product. In this manner quality control department also work as research & development department in small & medium scale company.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 35

Devi Gems
QUALITY POLICY

DEVI GEMS Manufacturers of Diamonds are committed to achieve Customer Satisfaction by supplying defect free products. We shall continually make improvements through optimum utilization of material and machines, with well-planned efforts, upgrading skills of our employees & their total involvement. We shall achieve the above, through continual improvement in all our processes by following the Quality Management Principles & PDCA (Plan, Do, Check & Act) Cycle.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 36

Devi Gems

Reference
Images has been taken from:https://www.google.com/search?q=diamond+production&tbm=isch&tbo=u&sourc e=univ&sa=X&ei=_EIMU9mOL4KCrAe4h4CIBQ&ved=0CDQQsAQ&biw=990 &bih=505&dpr=0.8. https://www.google.co.in/search?q=diamonds&source=lnms&tbm=isch&sa=X&ei =D48MU-G7EoG4rgfT6IHYCw&ved=0CAcQ_AUoAQ Books referred1. 2. 3. 4. Russell and Taylor J.K.Shrma N.D.Vora Kanishka Bedi latest edition

All content is as per our understanding by physically analyzing the process and special contribution of Mr. Milan Shah(secretary), who has guided us about the whole process and also reference has been taken from other entrepreneurs in the same field.

S.R. LUTHRA INSTITUTE OF MANAGEMENT

Page 37