A Project Report on

STUDY OF MANUFACTURING PROCESS MANAGEMENT IN

Ashok Sahakari Sakhar Karkhana Ltd.

Submitted to

Oriental Institute of Management, Vashi, Navi Mumbai

In partial fulfilment of the requirements for the award of the degree of

MASTER OF MANAGEMENT STUDIES

Project work carried out at

Under the guidance of

Sushma Patil

Shri. Madhukar Devkar

Internal Guide

External Guide

BY

Gage Sushant Nitin

1108

Oriental Institute of Management,

Vashi Navi Mumbai
2011-2013 Batch

Acknowledgment

It is not just the formality, but it is my duty to say thanks to all those person,
who guided and co-operated with us directly or indirectly, during training and
preparation of this project report.
First we express our sincere thanks to my project guide Mr. Madhukar devkar for
their timely and valuable suggestion and co-operation during the completion of the
dissertation work
Special thanks to managing director Mr. kakade S.D For their helpful co-operation
entire training period.
Very special thankful to Mr. Bhanudas murkute chairman of ASSK for their cooperation and giving Permission for training and site visit
Lastly, I would like to thanks my parents as their blessing are always works for me.
My friends also need thanks as there as there continuous encourage me net leads
me complete the seminar work.

MR. GAGE SUSHANT NITIN

DECLARATION
I hereby declare that this report titled
STUDY OF MANUFACTURING PROCESS MANAGEMENT IN
Ashok Sahakari Sakhar Karkhana Ltd.
is a record of independent work carried out by me under the guidance and supervision of Sushma
Patil, Shri. Madhukar devkar towards the partial fulfilment of requirements for the M.M.S. degree
course UNIVERSITY OF MUMBAI

I further declare that this Project Report is the result of my own efforts and that it has not
been submitted to any other university or institute for the award of a degree or diploma or any other
similar title of recognition.

Sushant Gage

CERTIFICATE
This is to certify that Sushant Gage, 1108, is a bonafide student of Master of
Management Studies course of the Institute (2011-2013), affiliated to University of
Mumbai. Project report on Manufacturing Process Management is prepared by
his/her under the guidance of Sushma Patil in partial fulfilment of the
requirements for the award of the degree of Master of Management Studies of
University of Mumbai.

Internal Guide

Director

EXECUTIVE SUMMARY

The project is about the study of Manufacturing Process Management of Ethanol at Ashok Sahakari
Sakhar Karkhana (ASSK). The project incorporates basics of Process at ASSK.
In ASSK production control process starts with marketing department, where it get demands on the
basis of current market trends and it acts as a basis for developing production plan. It involves
coordination with various departments of ASSK, like it starts with marketing department and ends
with logistics. ASSKs main focus is on customer building by fulfilling their demands on time with
great quality.
Overall Production Process in ASSK is carried out

Marketing department: Marketing department forecasts the demand and gives it to other
departments which are directly involved in production activities.

Production department: Production planning is carried out here based on the availability of
the raw materials, finished goods in stock.

Logistics: Logistics of ASSK works in coordination with production and marketing

department where it gets

Minimum Demand In this, if the demand in the market is low then the ASSK must produce
minimum demand to sustain in the market.

Import finished products - ASSK thinks of its customer very much. If the plant is under shut
down because of certain reason, the company delivers the finished products by importing from
other companies to maintain good relationship with their customers.

Focused customers ASSK gives discount to customers who are taking the Products in bulk
quantity and to its regular customers.

Overall project learning is about understanding all above aspects which are required for the
smooth functioning of the production planning and control.
5

INDEX
A.1.
2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
4
5
6
B.1.
1.1
1.2
1.3
1.4
1.5
2
3
4
5

Content
INDUSTRIAL PROFILE
COMPANY PROFILE
Background
Nature of Business Carried
Vision, Mission, Policy
Product and Services
Area of Operation
Ownership Pattern
Competitors
Achievement & Awards
Work Flow Model
MCKENSYS 7S
Strategy
Structure
Skills
Style
System
Staf
Shared Value
SWOT ANALYSIS
ANALYSIS OF FINANCIAL INFORMATION
LEARNING EXPERIENCE

Page No.

GENERAL INTRODUCTION
Statement of the Problem
Objective of Study
Scope of Study
Methodology
Limitation of the Study
ANALYSIS & INTERPRETATION
CONCLUSION AND RECOMMENDATION
BIBLIOGRAPHY
ANNEXURE
Case study
List of Table ,Graph
6

PART: A
1. INDUSTRIAL PROFILE:The discoveries of sugar from sugarcane have originated in New Guinea,
and was spread routes to Southeast Asia and India. The Sugar Industry is the
second largest agro-based industry next to textiles in India. In India, sugarcane
is the key raw material for the production of Sugar. Sugar is produced from
Sugar Cane & Sugar Beet, App. 70% sugar is produced from Sugar Cane & 30%
produced from Sugar beet. Sugarcane is grown in semi-tropical region; Beet is
grown in temperate climate.
The Indian sugar industry is the second largest agro industry located in the rural
India. The Indian sugar industry has a turnover of Rs.500 billion per annum and
it contributes almost Rs.22.5 billion to the central and state as tax, and excise
duty every year. It is the second largest agro processing industry in the country
ofers cotton textiles. About 50 million sugar cane farmers and a large number
of agricultural labourers are involved in sugar cane cultivation and ancillary
activities, constituting 7.5% of the rural population. Besides the industry
provides employment to about 2 million skilled/semiskilled workers and others
mostly from the rural areas. The industry not only generates power for its own
requirement but surplus power for export to the grid based on by - productbagasse. It also produces ethyl alcohol, which is used for industrial and potable
uses, and can also be used to manufacture Ethanol, an ecology friendly and
renewable fuel for blending with petrol. The sugar industry in the country uses
only sugar cane as input; hence sugar companies have been established in large
sugar cane growing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat,
Tamil Nadu and Andhra Pradesh. In the year 2003-04 these six states contribute
more than 85% of total sugar production in the country. Sugar production is
spread across the globe; it is produced in over 122 countries. Globally, two
distinct raw materials are used for producing sugar via sugar beet and
sugarcane. The use of sugarcane or sugar beet for producing sugar highly
depends on the climatic conditions of the country. The tropical climate is apt for
growing sugarcane whereas temperate regions are suitable for growing sugar
beet. Thus, countries in the tropical or sub- tropical belts like Brazil, India and
Thailand use sugarcane whereas in countries like the US and EU, sugar beet is
used for producing sugar. Globally, almost 70 per cent of the sugar is produced
7

from sugarcane and the rest of the 30 per cent from the sugar beet. It was
expected that the global sugar supplies would be back to comfortable levels
after two years of shortfall, however extreme weather in Australia and Indonesia
will lead to shortfall in production. World sugar production is estimated at 161.9
mn tonnes for the marketing year 2010-11 down by 1.9 mn tonnes of early
estimates. The consumption is estimated at 158.9 mn tonnes, up by 1.2 mn
tonnes of early estimates. Sugar production in Australia may plunge to its lowest
level in 19 years to 3.58 mn tonnes due to Cyclone Yasi hitting Queensland
coast. Queensland accounts for about 90 percept of Australian sugar production.
The crop condition in Brazil, the largest producer and exporter of sugar, is not
very good due to poor rains. The entire South Brazil crop which meets two- third
of total global raw sugar requirement is rain-fed. As a result of these, global
sugar prices have been rising since February 2011 and we expect the prices of
global raw and sugar prices to remain firm over the next quarter due to tight
demand supply situation.
Fig 1:-Global Production and Consumption (Sugar
Season-Oct-Sep)

Global Production and Consumption

(Sugar Season October September)
Source: United States Department of Agriculture (USDA)

India Sugarcane and Sugar Area, Yield and Production (Sugar Season
October September)
2005-06
2006-07
2007-08
200809
2009-10*

Area Under Sugarcane (Mn Hectares)

4.41
4.20
Production of Sugarcane (Mn Tonnes)
285.02
277.75

4.20

5.15

5.05

281.17

355.52

348.18

66.90

69.00

68.90

Number of Factories in operation

489.00
490.00

455.00

504.00

516.00

Total Cane Crushed (Mn Tonnes)

144.98
185.54

188.67

279.29

249.90

19.26

28.36

26.35

Yield of Sugarcane (Tonnes per Hectare)

64.60
66.10

Total Sugar Produced(Mn Tonnes)

Source: National Federation of Cooperative Sugar

Factories

India Sugar
Consumption
The sugar consumption in India has grown at a steady pace over the years.
It has grown at a Compounded Annual Growth Rate (CAGR) of 4.3 percent
during the period from SS1995-96 to SS2008-09. CARE Research expects
the sugar consumption at 22.8 mn tonnes in SS2010-11 and 24.5 mn tonnes
in SS2011-12. The growing population coupled with growing per capita
income will help the country achieve the projected growth rate. Due to the
inelastic nature of the sugar demand and comparatively lower per capita
sugar consumption, there will be minimal impact on sugar consumption
owing to rising sugar prices.

Fig.2. Sugar Production - Million Tonnes(Sugar Season October September)

Source: National Federation of Cooperative Sugar Factories (NFCSF),
CARE Research

Fig.2. Sugar Consumption - Million Tonnes(Sugar Season October

September)
Source: National Federation of Cooperative Sugar Factories Ltd (NFCSF),
CARE Research

India sugar Import & Export

CARE Research expects that with rising stock-to-use ratio and higher
international sugar prices due to production shortfall globally will lead to sugar
exports to the tune of 1 mn tonne during SS2010-11e. Recently, the
Government of India (GoI) allowed export of 0.5 mn tonnes of sugar under
the Open General License (OGL) during March 2011 for SS2010-11.

India Sugar Exports and Imports (Financial Year April to

March)
Exports
Imports
FY
Exports (Mt) Exports (Rs. Crore)
Imports (Mt)
Imports (Rs. Crore)
2005-06
0.56
2006-07
0.00
2007-08
0.00

0.32

569.11

1.64

3127.47

4.68

5412.16

651.59
3.49
2.24

2008-09
3.33
4448.74
Source:
Directorate General of Commercial
Intelligence
and Statistics
(DGCIS)
State-wise Sugarcane and Sugar Production (Sugar Year 2009-10)
Sugarcane Production

Sugar Production

10

Source: (NFCSF)
Sugar Production Cycle
The Indian sugar industry is highly cyclical in nature. The production
of sugar in India completely depends on the acreage under sugarcane and the
availability of sugarcane in the country. Higher sugarcane and sugar
production.
Results in fall in sugar prices and thereby fall in the margins of the
sugar companies. Decreased profitability of sugar companies increases
sugarcane dues to the farmers. This compels farmers to switch to other crops
thereby causing a shortage of sugarcane and sugar, consequently increasing
sugar prices and profitability of the mill owners, resulting in prompt payment to
the farmers. With the fall in the sugarcane arrears, farmers switch back to the
production of sugarcane and the cycle continues. The typical duration of this
cycle is around 4-5 years.
The cyclicality of the Indian sugar industry is fully supply-driven,
as steady growth is observed in sugar consumption. The cyclicality is also
attributable to the regulated nature of the industry, primarily in respect to the
pricing of sugarcane.

11

Sugar
Production
Cycle

Source: CARE
Research

Regulation
Sugar being an essential commodity and on account of the higher
weightage in the Wholesale Price Index (WPI), the entire value chain of the
sugar industry is kept under the tight control of the Central and State
governments. The sugar industry in India is regulated right from cane
procurement to cane pricing, allocation of cane area to distribution of
sugar by the Central government and the respective state government.
During every SS, the Central government decides the price at which
sugar mill owners are to procure sugarcane from the farmers and also
the proportion of the sugar to be sold in the open market. Apart from
fixing the levy quota, the government also controls the quantum of sugar
to be sold in open market by each mill every month, in order to regulate
the price and the supply of the essential commodity. The Indian sugar
12

industry is the most regulated industry across the globe.

The Bagasse based co-generation
The Bagasse based co-generation projects helps the sugar mills in
arresting the cyclicality of the sugar industry through generating stable
source of revenue. Power is insulated from the price fluctuations and is
not cyclical in nature. This helps the sugar mills to shield their margins
during the down cycle of the core sugar business. Over the years,
GOVERMENT has given various incentives in the form of soft loans, tax
rebates and capital subsidies to encourage Bagasse-based co-generation
projects.
The co-generated power projects help the country to switch from
fossil fuels to renewable source of energy and to control the greenhouse
gas emissions. In August 2002, GoI had signed Kyoto Protocol (it is a
protocol to the United Nations Framework Convention on Climate Change
(UNFCCC)) for combating against the global warming by reducing the
greenhouse gas emissions. Under this mechanism, for each tonne of
carbon dioxide emission avoided, the entity is likely to get a Certified
Emission Reductions (CERs) or carbon credits which can be sold to
developed countries. Sugar mills are entitled to receive such CERs or
carbon credits as they generate renewable source of energy. This helps the
sugar mills to generate additional source of revenue.
State-wise annual cogeneration capacity in India
Co-generation capacity
State
Uttar Pradesh
Bihar
Punjab
Maharashtra
Andhra Pradesh
Tamil Nadu
Karnataka
Total

No. of Units
57
2
3
21
13
24
27
147

Installed Exportable Cpacity (in Mw)

1255
23
41
416
195
527
610
3067

Source:
sugarbazaar.com

In the span of three to four years, the co-generation capacity of the

sugar mills in India increased by more than four times. However, due to
the various road blocks in setting Bagasse-based cogeneration projects
and selling power, the industry could not realize its full potential. As
per the Ministry of New and Renewable Energy, the sugar industry
has a potential to generate 5,000 MW of surplus power through
Bagasse-based cogeneration projects.
13

During the same period, cogeneration capacity in MAHARASHTRA has

increased substantially from 100 MW to 1,255 MW as most of the UPbased sugar mills have succeeded in entering into long-term power
purchase agreements with SEBs for supply of surpluselectricity.

14

Alcohol Industry
Overview
The alcohol production in India is estimated at 1,680 million kls in FY10.
The changing perception of the people towards alcohol, rising youth
population in the country coupled with rising acceptability of alcohol
consumption among the female population is driving the growth story
of alcohol in India. CARE Research expects the Indian alcoholic
beverage industry to grow at a CAGR of 9 percent to 2,175 million kls,
during the period of FY10-13. Currently, there are about 325 distilleries
in the country with the total production capacity of 3,540 mn litres.
However, the licensed capacity is majorily concentrated in three states
of U.P., Maharashtra and Tamil Nadu.
Alcohol Production
in India (MN Kls)

Source: Business Brains,

CARE Research

The Alcoholic Beverage Industry in India can be broadly classified into

four segments - Beer, wine, Indian Made Foreign Liquor (IMFL) and
country liquor.
Alcohol Industry
Segmentation

15

Source:
CARE
Rectified Spirit (RS)
Production in India
RS is produced from molasses, a by-product of sugar, and finds
applications in three main areas - chemical sector, fuel oil and potable
alcohol. RS is widely used as intermediates for manufacturing various
chemical acidic products such as acidic acid and other chemicals such as
mono ethylene glycol (MEG), which is used to make fibre.
The production of RS remained range bound before falling by 25 percent in
FY10. The RS production in India stood at 1.01 mn kls in FY06 which grew
to 1.14 mn kls in FY08 and then fell to 0.72 mn kls in FY10. This was due to
the high molasses prices in of seasons 2009 and boiler shutdown in of
season 2010. Sugarcane crushing is expected to be much higher than the
previous season in FY11. Therefore, the total molasses availability will
also be higher, which may lead to a substantial drop in the prices of
molasses. Due to this, the production of Rectified Spirit is expected to be
higher during FY11.
Rectified Spirit Production in India

Source: Centre for Monitoring Indian Economy

(CMIE)

Production and Consumption of

IMFL
India Made Foreign Liquor
Production & Consumption
16

IMFL
Imports &
Exports
Indias IMFL import grew at a CAGR of 11 per cent over the FY06 and
FY10 period. The imports grew from 0.012 million kls in FY06 to 0.019
million kls in FY10. Only 5-6 per cent of Indias consumption is met
through imports. On the other hand, the exports of IMFL from India
declined at a CAGR of 1.1 per cent from 10.2 per cent of the production
in FY06 to 6.3 per cent of the production in FY10. The fall in exports can
be attributed to the rise in domestic demand.
India Made Foreign Liquor
Imports & Exports

Source: CMIE (Center for Monitoring Indian

Economy)

Now as per data this are very biggest industry related to sugar and
their by product.

17

2. COMPANY PROFILE
2.1 INTRODUCTION & BACKGROUND:
The factory is situated in Ashoknagar Village. It is an integrated
manufacturing company with strategic focus on sugar and its allied
products in power and ethanol. The companys registered office is in
Shrirampur, Maharashtra and corporate office is at Shrirampur. The factory
is 10 Kilo Meter from Shrirampur. Ashok sahakari sakhar karkhana was
established in 1954 at Co-Operative Basis. Ashoknagar Industries was
founded by late nivruttibhau Narayan P.Bankar with late Bhaskarrao
Sadashiv P.Galande.
Initially it acquired 1060 TCP (Ton Crushing Per day) Permission from the
Maharashtra Government in 1952. This unit asset base was moved to its
own location in Ashoknagar and expanded its capacity to 1500 TCP in 1965.
Indian technology machines and equipment are installed those were
provided by walchand industries. Then at year 1968 company was expand
sugar mill capacity up to 2600 TCP. As considering company progress in
year 1987 government of Maharashtra gives permission for 2800 TCP. In
year of 2002 as per sugar mill improvement and sugar &their by-product a
special act for ethanol give permission for distillery. Power plant was
established in 2010. Power plant machines and turbines are of BHEL. A
distillery and ethanol plant of 60 kiloliter per day capacity was added in
2002. The sugar refinery was set up to progress raw sugar to produce
refined sugar meeting European specification. The current capacity of the
sugar plant in Ashoknagar is 2800 TCD and 100 MT (Million Ton) of raw
sugar per day. The co-generation power plant is 15 MW plant. It is growing
very fast in industry. It is dynamic achievement of entrepreneur
Mr.Bhanudas Murkute. The company manufactured and traded over 500000
MT (Million Ton) of sugar in 2010-11 .Total trade flow puts the Company in
the top 10 of sugar producers/marketers in Maharashtra.
This plant is so designed that sugar can be produced not
only from sugarcane but also from raw sugar. This unit manufactures EC-II
grade sugar conforming to European standards, with negligible sulphur
content. Its distillery is among the few, to manufacture fuel ethanol from
ethanol. Government of India is encouraging the use of fuel ethanol as
mortar fuel since it is considered to be less polluting and also a renewable
source.
18

2.2 NATURE OF BUSINESS CARRIED:

Ashok Sahakari Sakhar Karkhana is integrated manufacturing
company with Strategic focus on sugar and its allied products in Power and
Ethanol. Business is seasonal in nature.
sugar and co-generation units are operational during the sugar season i.e.
October to April. Further, any disturbances or disruptions caused due to
extreme climatic conditions in a particular season may lead to a drop in
availability and supply of sugarcane to our Company which in turn reduces
the number of days of operation leading to reduction in revenues.
The Group's principal activity is to manufacture and market sugar. It also
provides power generation and ethanol production. The Group operates
through four segments. They are Trading, Sugar, Cogeneration, Distillery
and Other. Manufacturing Division: Sugarcane processing capacity 2800
TCD. Refining Capacity 2900 TPD. Primary Alcohol (Distillery) 1,20,000 litres
per day. Ethanol Dehydration 60,000 litres per day. Cogeneration Power
Plant 15 MW.

19

2.3 VISION, MISSION , POLICY:

Vision
The companys vision is to become the most efficient processor of sugar
and the largest marketer of sugar and ethanol in the country.
Mission
In our endeavour to be the torch-bearers of the Indian sugar industry, we
are specially committed to our farmers, workforce and shareholders. It is
our endeavour to provide our farmers the agreed price in time and to
provide a transparent system of sugar cane procurement. We also seek to
provide a congenial atmosphere and work place for the employees of the
company, who are our lifeline. Adherence to the best corporate governance
practices and a deep-rooted commitment to excellence is our resolve. All
these culminate in our permanent efort to enhance shareholder value and
wealth through growth of the company. To expand its installed capacity,
achieve end-to-end integration for all its plants to improve margins and
reduce cyclically of business. Achieve greater raw material security.
Increase its focus of corporate and high value consumers. To reduce price
risk in sugar by hedging. Maintain a strong presence in export market and
expand market for ethanol.
Objectives:
Ashok Sahakari Sakhar Karkhana, aims to become the most efficient and
market driven integrated processor of sugarcane in the world. To enable the
team to grow in a learning and motivating atmosphere. To participate in the
all-round development of the community & delivering consistently on
returns to all its shareholders. Commitment to keep process environment
friendly.
Environment policy:
20

Environment policy has become a serious matter in the industrial scenario

in India. Central and State Governments have many guidelines, to be
followed by Industries. Ashok Sahakari Sakhar Karkhana commits to
incorporate environmental issues an integral part of management
philosophy in sugar and distillery operations. Towards this Ashok Sahakari
Sakhar Karkhana., will 1. Produce ethanol in a clean, green and safe
environment. 2. Comply with all relevant statutory regulations. 3. Train and
motivate employees on environmental and safety through participation. 4.
Maintain the motto of continual improvement management 5. Strive for
pollution prevention by optimizing resources.

2.4 PRODUCT & SERVICES PROFILE:

SUGARSugar is sweetly, white or brown, usually crystalline substance obtained
chiefly from sugarcane or sugar beets and used commonly in food products.
Sugar means something sweet in form of taste. Formula: 12CO2 + 11H2O =
C12 H22O11 + 12O2 Carbon dioxide + water = sucrose + oxygen In
chemistry sugar refers to any of the class of carbohydrates to which this
substance belongs Glucose, lactose, and maltose are sugar most plants
manufacture sugar is soluge in water, sweet to the taste and either directly
or indirectly for men table. The chemist knows as sucrose one of the
family of sugars otherwise known as saccharides as the name implies,
contain carbon and hydrogen plus oxygen in the same ratio as in water.
Sugar is controlled commodity in India under the essential commodities Act,
1955. The government controls sugar capacity additions through industrial
licensing and determines the price of the major input sugar cane, decides
the quantity that can be sold in the open market, fixes the prices of the levy
quarter sugar and determines maximum stock levels for wholesalers etc.
Ashoknagar sahakari sakhari karkhana produced sugars is their main
product under sugar they produced various type like Raw sugar are
produced for export oriented approach for several countries like Russia,
japan etc. Brown sugar is often produced by adding cane molasses to
completely refined white sugar crystals in order to more carefully control
the ratio of molasses to sugar crystals and to reduce manufacturing costs.
Brown sugars are granulated sugars with the grains coated in molasses to
produce a light, dark or Demerara sugar. They are used in baked goods,
confectionery and tofees. Ashoknagar sahakari sakhari karkhana produced
M type sugar for domestic uses. Granulated sugars are also called as
Medium type are used at the table to sprinkle on foods and to sweeten hot
21

drinks and in home baking to add sweetness and texture to cooked

products. They are also used as a preservative to prevent micro-organisms
growing and perishable food from spoiling as in jams, marmalades and
candied fruits. L type sugars are granulated sugars with the grains their
size is large. This are made for various approaches . In food processing
industries and customer want for special purpose like in festivals various
sugar type made from this by crushing. Ashoknagar sahakari sakhari
karkhana produced M type sugar for domestic and food industries uses. In
the market after M type there should be more demand of S type sugar
Invert sugars also called S type and syrups are blended to manufacturers
specifications and are used in breads, cakes and beverages for adjusting
sweetness, aiding moisture retention and avoiding crystallization of sugars.
Harvesting and processing season:
Harvesting and processing season may vary from country to country and
area to area and factory to factory depending on the convenience. Usually
the harvest starts in July/August and continues to April/May. Some factories
have the continuous supply of cane throughout the year, and they process
throughout the year without keeping the factory idle.
Handling and transport of cane:
The bulk of the worlds sugarcane is harvested and loaded by hand and
transported by trucks, Lorries, tractors, and bullock carts from growing
place to factories. Some factories have railway track for the purpose of
transporting sugarcane and sugar.
By-Products of sugarcane:
The sugar mill produces many by-products along with sugar. A typical
sugarcane complex of 2800 TCP capacity can produce 345 ton of sugar,
6000 liters alcohol, 3 ton of yeast, 15 ton of potash fertilizer, 25 ton of pulp,
15 ton of wax, 150 ton of press-mud fertilizer and 750KW of power from
bagasse.
Molasses:
Molasses is the final effluent obtained in the preparation of sugar by
repeated crystallization. It is the end product from a refining process carried
out yield sugar. Sucrose and invert sugars constitute a major portion (40 to
60%) of molasses. The yield of molasses per ton of sugarcane varies in the
range of 3.5% to 4.5%. Molasses is mainly used for the manufacture of
ethyl alcohol (ethanol), yeast and cattle feed. Ethanol is in turn used to
produce portable Liquor and downstream value added chemical such as
22

acetone, acetic acid, butane, acetic anhydride, MEG, etc. Some of the
alcohol based chemicals like MEG, acetic acid, and acetone etc., face stif
competition from production through the petrochemical route. Nearly 70%
of molasses produced are consumed by the industrial alcohol manufactures
and the remaining 30% is consumed by the portable alcohol sector. After
alternating between control and decontrol, the government adopted the
policy of partial decontrol in 1967-68, which has since been the mainstay of
government policy except for two short periods of decontrol in the 1970's
Under this policy, the government procures 40% of production at controlled
prices based on the Statutory Minimum price for sugar cane, for supply
through the public Distribution System and the balance 60% is allowed to
be sold by the mills in free market subject to the monthly release
mechanism. The levy quota for sugar mills has been brought down from the
peak levels of 70% in 1968-69 to the present levels of 40% as a gradual
process of deregulation of sugar industry.
Bagasses:
Bagasse is a fibrous residue of cane stalk that is obtained after crushing
and extraction of juice. It consists of water, fibre and relatively small
quantities of soluble solids, the composition of bagasses varies based on
the variety of sugarcane, maturity of cane, method of harvesting and the
efficiency of the sugar mill, the usual bagasses composition is given in
exhibit 5 as shown below. Content Range % Moisture 46-52 Fibre 43-52
Soluble solids 2-6 Bagasse is usually as a combustible in the furnaces to
produce steam, which in turn is used to generate power. It is also used as
raw materials for production of paper and as feedstock for cattle. By
making use of bagasse, sugar mills have been successful in reducing
dependence on State Electric Board for electric supply. In the process of
crushing of sugar cane, Bagasse, a fibrous by-product is produced which is
used in the boilers to generate steam. Ethanol:The Company produces alcohol from the molasses (Molasses is the brown
coloured residue after sugar has been extracted from the juice. Molasses
still contains some quantity of sugar, but this sugar cannot be extracted by
usual technology) left after the extraction of sugarcane juice, which can be
used both for potable purpose as well as an Industrial chemical. Further,
this alcohol can again be purified to produce fuel grade ethanol that can be
blended with petrol.
Bio-fertilizers: The residue product from distillery operations blended with
chemicals is being sold as bio-fertilizers.
Power: The Company has a power plant with a capacity of 15 MW at its
Ashoknagar Unit and is using 4 MW for captive consumption in manufacture
23

of sugar and balance 11 MW is supplied to MSEB for domestic and industrial

use. The Company produces power from Bagasse, which is used in the
manufacturing process as well as sold to the state electricity boards.
Further, this Bagasse based cogeneration plant is eligible for carbon credit
compensation under the Kyoto protocol.

2.5 AREA OF OPERATION:Registered office:

Ashok Sahakari Sakhar karkhana LTD, Ashoknagar, Tal. Shrirampur, Dist.
Ahmednagar
Corporate Office:
2nd floor, kesharPrem complex, Shrirampur, Dist. Ahmednagar
Sugar and co-generation:
Ashok Sahakari Sakhar karkhana LTD, Ashoknagar, Tal. Shrirampur, Dist.
Ahmednagar
24

Sugar refinery:
Ashok Sahakari Sakhar karkhana LTD, Ashoknagar, Tal. Shrirampur, Dist.
Ahmednagar

2.6 OWNERSHIP PATTERN

Ashok Sahakari Sakhar Karkhana is running on the Co-Operative pattern of
the ownership.
Current director body is

Shri. Suresh Machindra Galande(Chairman)

Shri. Manik Barku Shinde(Vice Chairman)

Shri. Bhanudas Kashinath Murkute(Guidence)
Shri. S.D.Kakade (Managing Director)
2.7 COMPETITIORS
Shri Bhogawati SSK LTD.
Shri Datta Shetkari SSK LTD.
Shri Tatyasaheb Kore Warana SSK LTD.
Adivasi S.S.K. Navapur Nandurbar Vibhag Ltd (Tal. Navapura, Dist.
Nandurbar)
Bahganga Sahkari Sakhar Karkhana Ltd. (Bhum, Dist.- Usmanabad)
Chhatrapati Sambhaji Raje Sakhar Udyog Ltd. (Sambhajinagar
(Aurangabad))
Dongarai Sagreshwar Shetkari SSK Ltd (Kadepur (Raigaon))
Gurudatta Sugars Limited (Takliwadi, Tal. Shirol, Dist. Kolhapur)
Jai Mahesh Sugar Industries Ltd. (Pawarwadi, Tal. Majalgaon, Dist. Beed)
Khandoba Prasanna Sakhar Karkhana Ltd. (Tal. Karad, Dist Satara)
Mahadik Sugar And Agro Product (Radhanagri, Dist. Kolhapur)
25

Nira Bhima S.S.K. Ltd. (Tal:Indapur Dist.:Pune)

Priyadarshini Shetkari SSK Ltd (Shivaji Chowk, Udgir, Dist. Latur)
Saibaba SSK Ltd (Tal.Jintur, Dist.Parbhani, At Mankeshwar, Teh.Jintur,
Dist.Parbhani)
Sarvodaya S.S.K. Ltd (Karandwadi, Tal. Walwa, Dist. Sangli)
Shree Ambadevi SSK Ltd (Nityanandnagar, Dahigaon (Recha) Road, Tal.
Anjangaon, Dist. Amaravati)
Sidhapana S.S.K. Ltd (Patoda Dist. Beed)
Yogeshwari Sugar Industries limited (Limba, Tq. Pathri Dist. Parbhani)
Sanjivanee S.S.K. Ltd (Kopergoan, Dist. Ahmednagar)

2.8 ACHIEVEMENT AND AWARDS:

The company is working as per ISO 9001 quality standards.
The company is working as per ISO 14000 environ mental standards. The
company has also been awarded a 2 star export house status by the
Director General of Foreign Trade (DGFT), Government of India. The
companys Bagasse based cogeneration plant at Ashoknagar has qualified
as a Clean Development Mechanism (CDM) projects. The modern
technology of Re-boiler cuts down quantity of effluent produced 14%
helping management of spent wash. Remarkable reduction in generation of
spent wash through various measures. Zero discharge status for Distillery.
Recycle and reuse adaptability in sugar plant, co-generation and distillery.
Ashok Industries has taken up an ambitious program of planting 30,000
trees in the campus of factory and has successfully implemented it which
improves the environment and adds to the beautification of the sugar mill.
2.9 WORK FLOW MODEL:Sugar Production
process:
Traditionally, sugar is produced from sugarcane, which is procured from
the farmers of the sugarcane command area. However, sugarcane is a
seasonal crop available only during a fixed period of the year i.e. from
September-April. This limits utilization of the machinery, especially the
26

process house. Company set out below the flow chart enumerating the
sugar production and allied products (electricity, ethanol and biofertilizers) process:
Juice Extraction:
Harvested sugarcane is transported to the factory, weighed and prepared
for crushing. The cane is prepared to expose the sugar cells, for efective
extraction of juice. Prepared cane is then crushed in a series of mills and
juice is extracted. Bagasse, which is the fibrous residue, is used as fuel in
the cogeneration plant.
Juice Treatment and Evaporation:
Juice from the mills is screened and heated in various heat exchangers.
The juice is then treated with Milk of Lime, which reacts with the
impurities in juice. Sulphitation of the juice is done by passing SO2 gas
through the juice. The treated juice is further heated and let into a clarifier
where the impurities settle at the bottom and clear juice floats up and is
decanted. Water from the clear juice is evaporated in a series of
evaporators. Steam from the cogeneration power plant is used as heating
media for the evaporation. Condensate from the evaporators is recycled
back to the boilers where it is again converted into steam.
Crystallization:
Concentrated juice (syrup) after evaporation is further subjected to
sulphitation and thereafter vacuum boiling in pans is done for complete
exhaustion. Once the crystals are formed in the pan, a mixture of
molasses and sugar crystals known as massecuite is formed. The
process of crystallization starts taking place in the pans and is completed
in the crystallizers. The Massecuite is then centrifuged in centrifugal
machines to separate sugar and molasses. Molasses, another by-product,
is sent to the distillery for alcohol production.
Sugar Drying and Grading:
Sugar from the centrifugal separators is conveyed to a rotary drier. The
lumps and very fine powder are separated in the sugar grader. The
segregation is done by vibratory process and different grades of sugar are
collected in diferent silos.The sugar from the silos are packed in bags of
50/100 Kgs by auto weighing and bagging machines and conveyed to the
godowns by belt conveyors, where they are stored and thereafter sold as
per the allocation made by the Government.
27

Spirit Production Process

Fermentation:
Molasses containing 48% to 50% fermentable sugars from the sugar plant
is diluted with water in the ratio of 1:3. During the fermentation, yeast
strains of the species saccharomyces cerevisiae, a living micro- organism
belonging to class fungi converts sugar present in the Molasses, such as
sucrose or glucose to Ethanol. Normally one (1) ton of Molasses
containing 50% fermentable sugars give an alcoholic yield of 250 litres.
Optimum parameters like pH and temperature control and substrate
concentration are required for fermentation.
Distillation:
28

The fermented wash is pre-heated and pumped to the top of analyser

column. Steam or vapors are indicted at the bottom of the analyser
column, which strip the Ethanol from the fermented wash. The vapours
coming from analyser column consist approximately 50% Ethanol and 50%
water with impurities such as higher alcohols, aldehydes, acids, sulphur
dioxide, etc. Spent wash from the analyser column bottom is sent for
treatment to the Effluent Treatment Plant. The vapour draw from top of the
analyser is fed to pre-rectifier column for removal of low boiling impurities.
The vapours coming out of the top of the pre-rectifier column are fed to
the condenser. The condensed liquid is collected in the pre-rectifier
reflux tank. Impure spirit draw is taken from the reflux and fed to the T.A.
mixing bottle where it is mixed with the impure spirit coming from rectified
cum exhaust and fuel oil column.
Ethanol water mixture from the pre-rectifier column bottom is fed to the
rectifier cum exhaust column. This column serves to strip out Ethanol from
liquid stream flowing down. Steam is sullied at the bottom of the column.
The rectified spirit vapors coming out from top of the column are
condensed in the analyzer reboiler. Balance Ethanol vapors are condensed
in the analyzer vent condenser. The condensate from reboiler and vent
condenser are collected in rectifier reflux tank. Condensed liquid is
pumped back to the Rectifier cum exhaust column from the rectifier reflux
tank by reflux pump. Impure spirit draw is taken to the T.A mixing bottle.
The rectified spirit is drawn from upper tray of the Rectifier cum Exhaust
column and sent to rectified spirit storage via rectified spirit cooler. High
Fusel Oil and Low Fusel Oil are drawn from Rectifier cum Exhaust column
at the required rate. These draws are taken to the fusel oil cooler and
taken to the fusel oil column for further concentration. Spent lees coming
out of the Rectifier cum Exhaust column bottom is used to pre-heat the
feed to Rectifier cum Exhaust column in the rectifier feed pre-heater. A
spent lee is drained to gutter in a controlled manner by the level in the
Rectifier cum Exhaust column bottom. Fuel Oil Column basically is
concentrating the fuel oil received from the rectifier column so as have
efective separation of heavy fuel oils. Steam is supplied as a heat source
to concentrate fuel oil.
The Ethanol both pure and impure is first led into separate receivers. The
quantity of Ethanol produced is assessed daily in the receiver and it is
finally transferred to respective storage vats in the warehouse. The spirit
from storage vats will be issued for sale. There is strict control of State
Excise Department on raw material used, Ethanol produced, issue of
Ethanol and losses of Ethanol, during storage and transfer from one tank
to other tank.

29

Co-generation
In the processing of sugarcane, Bagasse, a fibrous by-product is
produced which is used in the boilers to generate steam. Excess
Bagasse from the mills is conveyed to the storage yard by conveyors.
This bagasse stored in the yard is used on two occasions, first whenever
there is any stoppage in the crushing and second during off season.
Steam which is produced by burning Bagasse is subsequently fed to
steam turbines where it expands and rotates the turbine rotor at high
speed, which in turn rotates the alternator to generate power. This
power is used to meet the power requirements to operate the plant and
the excess power generated is fed to the grid after upgrading it to 110
KV. The exhaust steam from the turbine, which is at a very low-pressure
of 1.5 kg/cm2, is used for boiling in the sugar process.
Bagasse is the dry, fibrous residue remaining after the extraction of juice
from the crushed stalks of sugarcane, which is used as a fuel for boilers
to generate steam which is used in production of sugar and for power
generation.
Production Capacity &
Installation:Company have an installed capacity of 15 MW co-generation plant at
our production facility. Company use Bagasse as a fuel in our boilers to
generate steam, which is used to produce electricity. Company cogeneration unit having an installed capacity of 15 MW generates upto
14.1 MW of which 4 MW is used for captive consumption. Out of the
surplus of 10.1 MW is sold on a merchant sale basis under a Power
Purchase Agreement through Maharashtra state electricity company now
called as maha-distribution & maha-tranco.

3. MC-KINSEYS 7-S MODEL:The 7-S Framework of McKenzie is a management model that describes 7
factors to organize a company in a holistic and efective way. Together
these factors determine the way in which a corporation operates.
Managers should take into account all seven of these factors, for the
successful implementation of strategy large or Small. They are all
interdependent organizational variables that need to be taken into
account in organizational design. So if management of an organization
fails to pay proper attention to one of them, this may afect all others as
well. On top of that, the relative importance of each factor may vary over
time.
Origin: The 7-S Framework was first mentioned in The Art of Japanese
Management by Richard Pascale and Anthony Athos in 1981. They had
been investigating how Japanese industry had been so successful. At
around the same time that Tom Peters and Robert Waterman were
exploring what made a company excellent. The Seven S model was born
at a meeting of these four authors in 1978. It appeared also in In Search
of Excellence by Peters and Waterman, and was taken up as a basic tool
by the global management consultancy company McKinsey. Since then it
is known as their 7-S model.
Key Elements: There are seven interdependent key elements in the
McKinsey 7-S Model. These are: Strategy, Structure, System, Style, Staf,
Skills, and Shared Values. These seven elements are distinguished in so
called Hard Ss and Soft Ss. The Hard S elements (Strategy, Structure
and System) are feasible and easy to identify. They can be found in
strategy statements, corporate plans, organizational charts and other
documentations.

The Soft S elements (Style, Staf, Skills, and Shared Values) however,
are hardly feasible. They are difficult to describe since capabilities,
values and elements of corporate culture are continuously developing
and changing. They are highly determined by the people at work in the
organization. So it is much more difficult to plan or to influence the
characteristics of the soft elements. Although the soft factors are below
the surface, they can have a great impact of the hard Structures,
Strategies and Systems of the organization.
STRATEGY:By strategy we mean those actions that a company plans in response
to or anticipation of changes in its external environment, its customers
and its competitors. Strategy is the way; a company aims to improve
its position vis-a-vis completion, perhaps through low cost of production
or delivery perhaps by providing better value to the customer, perhaps
by achieving sales and services dominance. It is, or ought to be, an
organization way of saying, here is how we will create unique value.
As the Sugar companys has chosen route to competitive success,
strategy is obviously a central concern in many business situations
especially in highly competitive by industries where the game is won or
loose on share points. But Structure follows strategy is by no means
the be all and end all of the organizations wisdom. ASSK is providing
ample opportunities to the people at various levels to impart their skills
and expertise in order to enhance growth by taking positive strategic

decisions. The management wants to empower the greater heights of

achievements and each one should be given opportunity to excel and
show their potential, efective and efficient performance. Now I am
going to explain the pricing strategy of ASSK. Pricing Policy: Unlike
other consumer or other goods, sugarcane will not be difering because
it is subject to control of Government. Government will fix the sugar
price. Price for exporting will be fixed by the firm. It is management's
policy to fix the price for exporting. Sugar Prices: Sugar is a controlled
commodity in India under the Essential Commodities Act, 1955. Sugar
prices in the country can be classified into two broad categories at the
user end as free market prices and prices of sugar through public
distribution system. The GOI (Government of India) announces PDS
sugar prices based on levy sugar prices fixed by it and the subsidy to
be provided through budgetary system. The realization to sugar mills
from government levy quota is called levy prices. Levy prices are fixed
by the GOI based on SMP for the year. But usually levy prices are very
low and fall below the cost of production. Therefore the producers are
left with only free sale sugar quota to run the business profitably. GOI
controls extend to free market prices also through the issue of monthly
dispatch orders to all the sugar mills in the country based on demand
supply situation in the country. In September 1998, PDS sugar prices
were increased from Rsll.40 per kg to Rs.12 per kg. The sugar price
range in the country for last few years is given below. The sugar prices
move in close relation to production of sugar and the inventory in the
country. Sugar prices are the lowest in India when compared to the
leading sugar consuming countries in the world. Converted into Indian
rupees the price equivalent in Japan is of the order. Rs.64.8 per kg.
USA. Rs.31.5 per kg. China. Rs.25.78 per kg. Indonesia. Rs.18.62 per
kg. Brazil and Pakistan. Rs.17.9 per kg. Sri Lanka, Thailand and
Malaysia. Rs.7.18 per kg.

1) Increasing our revenues from sugar, power and distillery

products in the State of Maharashtra.
Company propose to increase the capacity of our sugar unit from the
present 2800 TCD to 5000TCD.Company believe this increase in the
sugarcane crushing capacity will enable us to become one of the largest
sugarcane crushers in the State of Maharashtra at a single location
thereby leading to increase in revenues from all our business segments.
Company also proposes to increase its co-generation licensed capacity
from the existing 15 MW (installed capacity of14.4 MW) to 25MW in future.
Pursuant to this increase in the capacity, we believe our Company shall
become one of the largest power generating company from a single
location in the State of Maharashtra.
2) Sale of surplus power generated by the co-generation unit.
Company have installed a power generation unit with 1 boilers and 1
turbines. It utilize bagasse from the sugar unit as fuel in the boilers to

generate steam for running the turbines which generate an aggregate

power of approximately 15 MW. Our co-generation unit having an installed
capacity of 15MW generates upto 14 MW of which 4 MW is used for
captive consumption. Out of the surplus of around 10 MW, 14 MW is sold
on a merchant sale basis under a Short Term Open Access (STOA)
arrangement under a Power Purchase Agreement (PPA) through
Maharashtra state electricity board. The proposed expansion of our
integrated facility includes the installation of a new boiler with 150 TPH
capacity of 110 kg/cm2 pressure and a turbine 25 MW. These additional
installations will enable our
Company to increased capacity of 40MW which will generate around 3540 MW of power during the sugar season.
3) The proposed expansion of the co-generation unit of our
integrated production facility will lead to cost effective power
generation.
Company proposes to install a 150 TPH boiler with operating
parameters of 110 kg/cm2 pressure and temperature of 540 +- 5C.
This high pressure boiler is much more efficient than the existing 67
kg/cm2 pressure boilers being operated by our Company. The proposed
boiler will lead to lower consumption of fuel by more than 10% for
steam generation as compared to the existing boilers. Overhand above
the fuel savings, the steam temperature from this boiler is higher than
the existing boiler which will generate more power per ton of steam
consumed in the turbine.
4) Expansion of our distillery unit will enable higher production
and sale of IMFL products.
5) Increase the sale of IMFL products by entering into contract
manufacturing arrangements with licensed manufacturers.
ASSKs existing business segments or revenue verticals include sugar,
distillation (alcoholic spirits, IMFL and ethanol) and co-generation.
Presently, IMFL contributes nearly 32% to the revenues of Company.

STRUCTURE:-

To understand this model of organization change better, let us look at

each of its dimensions, as most organizations do. The central problem in
structuring today is not the one on which most organization designers
spend their time that is, how to divide up tasks. It is one of emphasis and
coordination how to make the whole thing work. The challenge lays not so

much in trying to comprehend all the possible dimensions of organization

structure as in developing the ability to focus on those dimensions which
are currently important to the organizations evaluation and ready to refocus as the crucial dimensions shift. The activities are classified and
based up on the job profile. The mangers perform the various functions of
the concerned departments. There is vertical communications in the
organization. The manager has a span of control on 10-20 members in a
particular section. The departmentalization in company as a whole is
based on the Function because each department has to perform their
respective functions. The decision making is partly centralized and partly
de-centralized. The employees have to follow according to the instructions
given by their higher authorities.
Departmentation is a process of dividing the large functional
organization into small and flexible administrative units. The basic need of
department ion arises because of limitation on the number of
subordinates that can be directly managed by superior. Basis for
Departmentation: Departmentation may be on the basis of function,
products region, customers, process time, and marketing channel.
Functional basis is very popular method of departmentation. It refers to
grouping of actives of organization into major functional department like,
production, purchase, marketing etc. In ASSKs departmentation is on the
basis of Function. The major Functional departments of Shri Renuka
Sugars Ltd are as follows.
PRODUCTION DEPARTMENT: The department deals with the production
activities in the production floor where men and machines are employed
to convert the cane and chemical into finished product (sugar) for
handling them over to sales department. For sugarcane the production
process is carried in the following steps. Pressing of sugarcane to extract
the juice. Boiling the juice until it begging to thicken and sugar begins to
crystallize. Spinning the crystals in a centrifuge to remove the syrup,
producing raw sugar. Shipping the raw-sugar to a refinery where it is
washed and filtered to remove remaining non-sugar ingredients and
colour. Crystallizing the drying and packing the refined sugar.
PURCHASE DEPARTMENT: The head of the departments heads is the
purchasing department. Purchasing decisions are divided into two. One for
purchase of capital assets and another is regular purchase. Purchase of
capital assets: It requires approval of management. Considerable point
while purchasing capital assets are, Life duration of the assets. Cost of the
assets. Capacity etc. Regular Purchases: Indent from the user is original
document to issue purchase order for regular purchase of materials and
goods. Process:
Receiving indent from the users Calling tenders if
necessary. Preparing purchase order. Ordering to suppliers. Making
purchase return if the material does not match the order.
STORES DEPARTMENT: Stores department holds the entire inventory
required in the organization all the materials coming are subject to record

at stores and holds them at stores until they are issued to the required
department.
Functions: Receipt of materials. Inspect it with ordered quantity, quality
and any specification. Some of the materials like chemicals are to be sent
to laboratory for inspection and testing. Getting the indents from the
departmental head and issuing it. To make the purchase returns if the
materials are rejected. Maintain minimum level of materials. Informing
purchase department when materials require. Materials Handled:
Engineering tools spares. Raw materials. Stationary. Packing materials.
ADMINISTRATIVE DEPARTMENT:
The administration controls and monitors the activities of the time office
and security personnel. Human Resource Development is the challenging
function in- front of the administration department.
PERSONNEL DEPARTMENT: Functions. Recruitment and selection: The
advertisement for recruitment of employees is made through leading
newspaper. Apart from this as statutory obligation, the company appoints
trainee also among the application received eligible candidates appointed
for the job. Training and development: Training imparts skills to newly
employee. Training is necessary in production, mechanical and electrical
department. On the job training is arranged at the plant. Remuneration:
Remuneration refers to the reward for labor and service. Basically
remuneration is on the basis of hours worked. Each shift is of 8hours and 3
shifts a day. Fringe Benefits Canteen facility. Transportation facility. .
Housing facility. . Free electricity. . Excreta (A type of bonus given during
deepawali.). . KLES Health Card (Rs.1 lakhs for the employee and Rs.
50,000 for spouse.) . Workmen compensation policy depending upon the
age and position of the employee. TIME OFFICE: Objectives of time office
are. . Keeping attendance records for administration and payment
purposes. . Maintains records for giving increment and promotion
(Promotion is on the basis of Merit.)
FINANCE DEPARTMENT: Finance is the life blood of the business. One
cannot imagine a business without finance department because it is the
central point of all business activities. Finance department of ASSK plays a
very important, as it is here that decision with regard to procurement and
utilization of funds are taken. Such decision includes the preparation of
various budgets, allocation of funds for various activities or division of the
firm as well as distribution of profits etc. Bankers : MS CO-OP BANK, BANK
OF BARODA, NABARD, SBI
ACCOUNTING DEPARTMENT: Introduction: ASSK is an Industrial
organization manufacturing sugar, power and ethanol accounts
department of ASSK plays a vital role in achieving company's objectives.
Need for accounting system: . To ascertain the profit / loss of the
business . To ascertain the financial position of the business . To provide

control over assets and properties of the company . To provide information

to tax authorities like, sales tax, income tax, control excise etc., .
Assistance to management on: 1. Decision-making 2. Forward Planning
and budgeting. . To provide information to government central, state and
various local bodies
CANE DEPARTMENT: Cane is the only raw material for producing sugar. The
department keeps a direct link with farmers and helps the farmer to
develop the cane. Objectives of Cane Department: . To procure the cane at
proper time and proper condition. . To look after the transportation of cane
from farmers through trucks tractors and carts. To develop the cane and
giving proper guidelines to grow. . To keep and maintain concerned land
database. . Hiring trucks and tractors. . Harvesting cane. Circle office:
Assistant cane development officer heads the circle office there are 20
circle officers located at diferent places surrounding from where cane is
being produced. Supervisor assists circle officer. There is one supervisor
for 1500 acre. Supervisors are to report corresponding circle offices.
Weekly report has to be sent the cane manager.
ELECTRICAL ENGINEERING DEPARTMENT: This department takes care of all
repairs and maintenance of fittings and fixtures of the plant. The electrical
engineer is the head of the department. Assistant electrical engineer and
junior engineer assist him. Functions: . To repair & maintenance of
machines. . To develop power for prime movers & lighting. . Attending
electricity related works. . Maintenance of switch board etc
SALES DEPARTMENT: Sales manager is in-charge of the sales department.
The sales department takes care of all the sales. The Assistant sales
manager has to supervise the states. Marketing and advertisement are
not necessary in sugar industry because the customer do not ask for
specific company produced and that not separable. Anyhow the contacts
with dealers and agents are maintained and developed. About 40% of the
sugar produced by the company is used for domestic consumption and
the rest 60 % is exported. Functions: As mentioned above, marketing and
advertisement eforts are not made as mentioned above, marketing and
advertisement eforts are not made to promote sales. But the sales
department has to keep in contact with dealers and agents. . Getting
orders from parties. . Arranging for delivery to parties. . Maintains records
of sales. . Sending reports to managing director (head office).
CHEMICAL DEPARTMENT: Chemicals department is directly concerned with
production. When the production is on process, mixing proper quantity
and proper chemicals is necessary. Chemicals department is the
production department here. Important Chemical: Lime and sulphur
dioxide.
POWER PLANT: Power plant uses the fiber of processed sugarcane
(biogases) as fuel to generate electricity in an environmentally responsible
manner. An integrated 35MW power plant generates and supplies

electricity to the state grid produced from sugarcane waste. Steam used
to rotate turbines.
DISTILLERY: Distillery Plant was located in the year 2002 at the same
location. Spirit is produced at the distillery plant. Molasses converted into
rectified spirit. Molasses is waste product from sugar juice. It is the byproduct in the sugar industry. Production of spirit is subject to control of
excise department (Maharashtra state government). The same
department makes distribution and sale of spirit only. Ethanol is also
subject to control of excise department. In India 5% ethanol is used in
petrol. Industrial buyers for ASSK: Product Customers Sugar.

SKILLS:
A skill is the ability, knowledge, understanding and judgment to
accomplish a task. Skills may be defined as what the company does best;
the distinctive capacities and competencies that reside in the
organization. The skills of employees of organization are very appropriate,
as the business needs. The skills needed are both technical and clerical
(finance and marketing related). Sales executives are mainly from the
branches of B.Com, BBM, and MBA. And skilled people are mainly
engineers. The firm knows what is its responsibility in the market and
complete knowledge in order to satisfy its customer delightfully. ASSK
consists of the personnel, having high technical and managerial skills.
Ashok Sahakari Sakhar Karkhana is having distinctive capabilities in
comparison with the competitors. Training is provided to all level of the
employees, on specific tasks related to job and also on various other
broad aspects. They also contribute to the total customer value. The
technical personnel are sent Vasantdada Sugar Institute, Pune each year
for up-gradation and post-graduation courses and further choosing them

on merit. Training: ASSKs HR strategies focus on providing need based

training to its employees to develop their knowledge, skills and attitude in
compliance with ISO 9001/14000 standards. During the year, 49 in-house
trainings were organized covering: . Operation. . Maintenance. .
Instrumentation. . Electrical. . Finance. . Information Technology. On-thejob training was provided to 100 employees in Key areas of operation.86
Executives were nominated for 60 external training programmes on
various topics. Awareness programme on Internal Quality Auditor Training
on ISO 9001 (Quality Management System), ISO 14001 (Environmental
Management System) were conducted to train 38 Executives in the above
standards.

STYLE:
This part of McKinsey 7-S framework includes the leadership style of top
management and the overall operating style of the organization. It also
includes the motivational style used in the company. Some other
important areas which come under style are: 1. How does top
management make decisions (Ex participatory v/s top-down)? 2. How do
manager spend their time (Ex: informal meeting, informal conversation in
the field with customer)? Leadership Style Leadership is diferent to
management. Management relies more on planning, organizing and
communication skills. Leadership relies on management skills too, but
more so on qualities such as integrity, honesty, humility, courage,
commitment, sincerity, passion, confidence, positivity, wisdom,
determination, compassion and sensitivity. Some people are born more
naturally to leadership than others. Most people don't seek to be a leader.
Those who want to be a leader should develop leadership ability.
Leadership can be performed with diferent styles. Some leaders have one
style, which is right in certain situation and wrong for others. Some
leaders can adapt and use diferent leadership styles for the given
situation. A number of leadership styles are given below. . Authoritative
Leadership. . Democratic Leadership. . Participative Leadership. ASSK
Perspective: In the modern business situation of ASSK, the company is
using Democratic Leadership style. Anyone in the firm can directly meet
any one. Daily meetings will be held between the sales team and the
team manager to solve the problems of the teammates and to collect the
sales details. Team manage will report to the AGM (Assistant General
Manager) on the same day. Once in a week AGM will meet the sales
executives. Once in a month Vice-Chairmen of the organization meets all
the managers. The decision power is handled By CEO. He will take major
decisions regarding developmental activities and relationship with other
dealers and corporate buyers. Each department is given power and

responsibilities to operate and take decisions. ASSK has instituted

adequate internal control procedures commensurate with the nature of
business and size of its operations. ASSK has also prepared an Internal
Control Procedure Manual for all the departments to ensure that the
control procedures are followed by all departments. Internal controls are
supported by internal audit and management reviews. The Board of
Directors has an Audit Committee chaired by an Independent Director. The
Audit Committee meets periodically the management, . External-internal
auditors . Internal-internal auditors . Statutory auditors and reviews the
audit plans . Internal controls . Audit reports and the management
response to the observations and recommendations emanated from the
audit. All significant observations and follow-up actions are reported to the
Audit Committee. The Audit Committee has met seven times during the
financial year. 3.7

SYSTEM:
System refer to the formal process and procedure used to manage the
PRESIDENT organization including the management control system,
performance management, measurement and reward system, planning,
budgeting, resource allocation, MIS, distribution system, accounting
system, trading system etc. Systems maintained by the ASSK: The firm
has both manual and also computerized systems. . Financial system/
Accounting System: Currently they are using Tally 7.2 as the accounting
software. Each branch and department is divided and each have their own
files maintained, and at the end of the day the data will be transferred to
the main branch which will be processed together by the finance manager.
2. Customer data base system: The details of the customers are
maintained in the software called SAP which helps in maintaining long
relationship with the customers, and also help in the process of any
difficulty arises. This will help them to shortlist the deliveries and timely
delivery of cars. 3. Compensation system/ Reward system: The salary
details of various designations, payment dates and payments made are
recorded and also the incentives given are also maintained here. The
software used for this purpose is SAP. 4. Attendance System: The VB*
Punching Machine is used to record the attendance of the employees. The
employees has to insert there thumb on the machine when they comes to
the company and at the time of going again they has to insert his thumb
on the machine. This enables the company to have proper recording of
the attendance.

STAFF
Staf (in the sense of people, not line / staf) is often treated in one of two
ways. At the hard end of the spectrum, we talk of appraisal systems, pay

scales, formal training program, and the like. At the soft end, we talk
about moral, attitudes, motivation, and behaviour. People are one of the
most important assets of the company. The technologies, Products and
structures of a company can be copied by competitors but no one can
match the highly charged, motivated people who care these things.
People are firms repository of knowledge and they are central to
companys competitive advantage. Well educated, coached and highly
motivated people are critical to the development and execution of
strategies, especially in todays faster- paced, more perplexing world,
where top management alone can no longer assure firms
competitiveness. The staf of ASSK Top, middle and lower management
have nurtured following qualification thereby being able to meet the
expectations of their valuable customers. . Quality: ASSK staf maintains
professional attitude among all employees. . Line & Staf Relationship:
Line refers to those positions of an organization, which have responsibility,
authority and is accountable for accomplishment of primary objectives.
The relationship existing between two managers due to delegations of
authority and responsibility and giving or receiving instructions or orders
is called line relationship. Line authority represents uninterrupted series of
authority and responsibility delegating down the management hierarchy.
ASSK has adopted Line & Staf organizational structure that ofers
individual the opportunity to meaningfully learn & participate across
diverse business processes. The Managing Director of the company
responsible for the Quality Management System. He is overall in-charge
overseeing the overall growth of the company, whereas plant heads look
after day -to -day activities. The business process heads, as shown in
overall organization chart, are treated as top management to establish,
implement, maintain & continually improve efectiveness of Quality
management to establish, implement, maintain & continually improve
efectiveness of Quality Management System. The Deputy General
Manager follows the Managing Director. The team leaders of various
departments report to the Deputy General Manager.
According to the company the As of November 30, 2011, we had 1,191
full-time employees of which 111 are managerial, 158 supervisory, 288
are skilled and 562 are workmen/trainees/semi-skilled workmen. Most of
our employees are from nearby area of factory. Company hired
709contract labour as on November 30, 2011.The average age of our
senior management team and skilled employees is approximately 42
years. Employees are not currently unionized, and there have been no
work disruptions, strikes or other employee unrest to date. Our Company
believes that it has maintained good relations with its employees. We also
sponsor our engineers, chemists, and other employees for various
advanced courses in sugar engineering, sugar technology and alcohol
technology at various institutes.

SHARED VALUE
Shared values are what engender trust and link an organization together.
Shared values are also the identity by which an organization is known
throughout its business areas. These values must be stated as both
corporate objectives and individual values. Every organization and every
leader should have a diferent set of values that are appropriate to its
business situation. How To Establish Shared Values? Ensuring employee's
understanding of organization's values and vision requires the
organization to have clearly defined values. Without this, organization can
get itself into real trouble. . Defining shared value is more than putting
words on the paper. Most organizations have values statements or mission
statements, yet many do not follow them. Winning organizations create
successful cultures in a systematic way using various approaches that
may include visual representations, training seminars, and/or socializing
events. Unlike the other six Ss, super ordinate goals (Shared Values)
dont seem to be present in all, or even most organizations. They are,
however, evident in most of the superior performers. The diferent values
system of subordinates is to be responsible to their departmental duties
as delegated by the functional / departmental managers. The organization
can work efectively and efficiently if there is proper co-ordination. Culture
of the company practice integrity, honesty, commitment, promoting
salesmens.) . The company promotes Team Work. . The company value
leadership. (Result oriented and innovative, positive attitude). The
company have a passion for excellence (competing with global standards).
The company reward and recognize the standard

SWOT ANALYSIS
INTRODUCTION:
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and
Threats. SWOT analysis is an extremely useful tool for assessing and
communicating the current position of an organization or a particular
reform option in terms of its internal Strengths and Weakness and the

external Opportunities and Threats it faces. 4.2 SWOT ANALYSIS: SWOT

analysis came from the research conducted at Stanford Research Institute
from 1960-1970. The background to SWOT stemmed from the need to find
out why corporate planning failed. The Research Team was Marion Dosher,
Dr Otis Benepe, Albert Humphrey, Robert Stewart, and Birger Lie. The
research carried on from 1960 to 1969. 1100 companies and organizations
were interviewed and a 250- item questionnaire was designed and
completed by over 5,000 executives. During the research, initially SWOT
analysis was called SOFT (Satisfactory, Opportunity, Fault, and Threat)
analysis which was nothing but good and bad about operation in its
present and future. What is good in the present is Satisfactory, good in
the future is an Opportunity, bad in the present is a Fault, and bad in the
future is a Threat. This was called the SOFT analysis. Afterward in a Long
Range Planning in Switzerland, the F of SOFT changed to W and then it
called as SWOT analysis.
Strengths
-Fully integrated player
-Reduced impact of seasonally.
-Excellent relationship with Sugarcane farmers.
- Registering co-generation plant proper roads & highways leads to for
carbon credits.
-Right products, quality and outputs.
-Superior product performance as compared to competitors.
- New technology in Manufacturing.
-Well planned infrastructure
-Abundant and Assured plan of Sugarcane
-Power Supply to state grid
-Lowest Process Losses
-Highly skilled and motivated workforce
-Self-sufficient in power and water
-ASSK is the second largest producer of sugar in the north nagar region
after sanjivani.
Opportunities
-Integrated distillery.
-Well placed for exports.
-Superior Technology.
Focus towards corporate and supply of sugar-cane.
- Track record of successful acquisitions.
-Machinery that can be upgraded for higher capacities
-Opportunity to get into value added business
-Opportunity to set up bagasse based paper plant
-High value of by-products for down stream industries.
-Huge potential to increase the productivity of cane and sugar recovery
rate.
-Technology upgradation, new advanced technology available for the byproduct utilization.
-Develop closer ties with the community and stakeholders

-Educate the community about local industry issues. - Superior utilization of

fixed assets.
Weaknesses
- Extra cost of exporting raw sugar.
-Non availability of raw sugar in excess
-Cyclical Industry
-Highly regulated Industry
-Virtually No control over Raw Material Price
-Lackadaisical attitude of government in providing infrastructure such as
roads etc
-They have found difficult to pay for the sugar cane supplied by the
farmers.
-Most of the machinery (Nearly 50%) is more than 30 years old and still
using the old technology
Threats
- Competition from other Sugar Mills.
-Pricing policy of the government.
-Dependent on farmers for the industrial buyers.
-Import of Sugar
-Frequent changes in Government Policies
-Sugar sector is vulnerable to political interest.
-Ground water availability for irrigation.
-Quality of soil deteriorates due to overuse of fertilizer and pesticides to
increase Sugarcane yield.
-Increasing urbanisation in Ashoknagar areas.

Analysis of financial information

Balance sheet:

A) Source of Fund
1.Share Capital
2.Reserve &Surplus
A.etc
3.Secured Loan
4.Unsecured Loan

2010-11

2009-10

93957994
104574574
1
734541138.
8
660838670.
1
11028781.0
8

76122475
307730817.
9
633834297.
3
766204896.
7
19799617.0
8

254611232
5

180369210
4

122200276
1
24672415

452911602.
7
56321415

972708590.
2
79198446.3
1

915050812.
1
121902314.
1

214858480.
8
32671634.9
5

176883360.
4

254611232
5

180369210
4

TOTAL DEBT
5.Total Liabilities

TOTAL

B) Application of Fund
1.Gross Block
2.Investment
3.Current Asset
C.A.
Capital
4.missleneus Expenses
Adv.
P L Ac

80622600

------------------------------------------------------------------------------------------------------------

2009-10

2010-11

12749199.9
4

151077315
4

PROFIT LOSS ACCOUNT

INCOME
1 Sale
sugar

by- product

71279301.4
31028984.0
4

2 Other income
by- product Profit

TOTAL
B

EXPENDITURE
1 R.M.
excise duty
transport
supply
development
salary
strore
selling expence
administration

interest
EBITDA
Depreciation EBT

SHORT TERM
RATIO
1)Current

2)Quick
LONG TERM RATIO
1)Debt. Equity

2009-10
Current Asset
Current
Liabilities
Liquid Asset
Liquid liabilities

7215653.89

73641556
47402913.
48
16612166.
58

138444389
0

164842979
0

819707131
26055458
105881586
3077727.86
25313594.9
3
117129303.
4
65838341.5
3
12233469.0
1
26299972.8
7

973662399
29212044
168076259
7182190.5
1
42822640.
21
137853830
.5
86553777.
96
20919651.
88
34435833.
97

31921398.3
1

81655206.
81

16723057

18104992

2010-11
2.5
1.71

0.31

0.13

0.73

1.66

EBIT &
Depreciation
Interest

5.27

5.43

Net Profit

23%

15%

Long Term Debt

Equity

PROFITABILITY
RATIO
1)Interest cover
2)Return on
investment

3)Net profit
TURNOVER RATIO
1)Return on Asset
2)Inventory
Turnover
3)Deposit
Turnover
4)Capital
Employed

Capital
Employed
Net Profit
Sale
Net Profit
Total Asset
Cost of goods
sold
Avg. Inventory
Sale
Avg.Debators
Sale
Capital
Employed

11

41%

15%

7.59

6.66

44.66

22.45

4.48

1.76

LEARNING EXPERIENCES
It is a wonderful experience of being able to observe the
working of an organization first hand as it is my first time experience. This
exposure to the corporate working will help us in comparing the standards
in other companies. It will also help us in choosing our specializations and
the career which one is planning to get into in the long run. As my first
exposure to the corporate word, the things which I have learned as a
trainee in this organization are as follows.
The first thing I learned as a trainee is to be punctual. First few days I
was not punctual. One day I did not go to the company and failed to
inform the Senior Administrative officer. The next day I went to the
company, the officer asked me not to come for the next 2 days. I realized
my mistake and I was punctual for the rest of my training programme.
Human Resource: . The company recruits its manpower through various
sources such as internal sources, campus recruitments, advertising, etc. .
The selection process consists of Collection of applications blanks,
Screening of applications, written tests (aptitude & technical Personal
interview, Technical interview, medical Examination, job ofer, Placement
and induction). . Training is based on the requirements of the employee.
Each employee is given a questionnaire which consists of the various skills
required to perform a particular job. The employee rates himself on
various aspects. Based on the ratings, the area in which training is to be

given is decided and a training calendar is prepared every year. . The

employees are appraised on their performance once in every 6 months.
The appraisal method is based on Rating Scale. The appraiser rates his
subordinate based on the targets set and how far the subordinate is able
to achieve his set targets.
Marketing: . Marketing department is considered as the key department in
this organization as it is responsible for generating orders for the
companys product range. These work orders are sent to respective
department for processing. . At present the company is using pull strategy
for marketing its products. The company fixes to both distributors as well
as to marketing personnel to meet the desired objectives. If they achieve
the target it provides incentives to sales personnel.
Production: The Company has sugar laboratory which conducts tests and
check for suitability of product to health care. . All employees have to
wear uniform on all working days. This shows the discipline of workers. .
The plant is designed in the shop floor and the movement of materials
from one machine to another is easily understood by me.
General: The company uses VB* punching machine to record the
attendance of the employee. The company has a strict security
department. They will not allow any outsider to enter the company unless
the Administrative department gives permission. The trucks and tractor
are allowed to enter inside the company only after checking the invoice
and the license of driver. The depreciation is calculated on the Reducing
Balance Method. . The company follows more of an Organic type of
structure which develops self-reliance and decision making abilities
among the departments. . The departments functions as individual
teams. This creates a sense of team spirit among the group members in
each of the division. This also creates a competitive environment with in
the organization. . The subordinates are encouraged by their superiors to
take initiatives in production planning and control which could lead to
reduction in cycle time.
CONCLUSION:-ASSK have state of art equipment and a highly competent
technical team that produces one of the highest quality sugars. It is
growing very fast in the industry. It is dynamic achievement of
entrepreneur Mr. Bhanudas Murkute. ASSK is not only concentrating in
production of quality sugar, but also engaged in developing new seeds
which will be more suitable to the climate. Irrigation planning by ASSK is
appreciable. It arranges loans from banks for pipeline facilities to fanner's
fields. Lots of irrigation is being done under this scheme repayment to
banks is made from the bill of concerned farmer. Sugar industry is agro
based and monsoon season hits the production. The reason as to why
sugar factories will be closed is because of inconvenience of harvesting
and even transporting the cane to the factory. Indian sugar industry is
highly fragmented with organized and unorganized players. The
unorganized players mainly produce Gur and Khandsari, the less refined

form of sugar. The Company is the only one in the industry today with a
formal risk management system in place. As a significant step forward in
hedging own sugar price risk as well as that of customers, the company
became an active corporate member on NCDEX dealing in sugar
commodities to trade in spot market and in futures. With an able
management and robust vision, Ashok SSK Ltd today is one of the fastest
growing sugar manufacturers in the country.

PART B
GENERAL INTRODUCTION
Aim
Study of process management & control and analysis of process
improvement in Ashok Sahakari Sakhar Karkhana
Nature and Scope of the study.
Manufacturing process management (MPM) is a collection of
technologies and methods used to define how products are to be
manufactured and Optimized manufacturing process. MPM difers from
ERP/MRP which is used to plan the ordering of materials and other

resources,

set

manufacturing

schedules,

and

compile

cost

data.A

cornerstone of MPM is the central repository for the integration of all these
tools and activities aids in the exploration of alternative production line
scenarios; making assembly lines more efficient with the aim of reduced
lead time to product launch, shorter product times and reduced work in
progress (WIP) inventories as well as allowing rapid response to product or
product changes Manufacturing Process Management (MPM) is a business
strategy

for

the

collaborative

development

and

optimization

of

manufacturing processes in enterprise.

MPM allows multiple alternative and resources to collaborate as one
single enterprise throughout the entire development of a manufacturing
process. MPM leverages specific technologies and methodologies to
create a collaborative environment for authoring, simulating and
managing manufacturing processes.
MPM is a critical component of Automised-Manufacturing, a broader
business strategy that addresses the full industrial process, from the
initial concept of a new product until it is delivered to the customer. MPM
enables manufacturers to use their product designs to define how the
product is going to be manufactured and then to deliver these processes
to the shop floor. Simply stated, MPM transforms what into how and
hands it of to when and where.
While the product design process defines an electronic bill of
materials - the what - MPM defines an Automized Manufacturing
processes - the how. This information is stored on a one source that
allows easy access and management of data throughout the
enterprise.
MPM enables the optimization of the manufacturing process chain,
significantly cutting time-to-market and time-to-volume and production
costs.
.Objectives of the study

1) To understand the nature of the ASSK S existing Manufacturing Process

Management &

its environment

2) To understand benefits and challenges of Manufacturing Process

Management respectively of ASSK.
3) Implementation of Manufacturing Process Management
4) To suggest the implementation of Manufacturing Process Management
model for efectiveness in ASSK.
5) The Primary objective of MPM is to study the scope and application of
MPM in the Organization.
6) The Secondary objective is to understand the benefits of MPM and the
factors afecting the successful implementation of MPM in Organization.
7) The sub objective is to Proposed a Model in Organization for efective
Production.
Statement of problem
In

Ashok

Industries

existing

model

of

manufacturing

process

management of distillery as well as sugar is not flexible with production.

To enhance production of distillery proposed new manufacturing process
model.

Meaning of Research methodology.

The system of collecting data for research projects is known as
research methodology. The data may be collected for either theoretical
or practical research for example management research may be
strategically conceptualized along with operational planning methods and
change management.
Some important factors in research methodology include validity of
research data, Ethics and the reliability of measures most of your work is
finished by the time you finish the analysis of your data.Formulating of
research questions along with sampling weather probable or non-probable
is followed by measurement that includes surveys and scaling. This is
followed by research design, which may be either experimental or quasiexperimental. The last two stages are data analysis and finally writing the
research paper, which is organised carefully into graphs and tables so that
only important relevant data is shown. The research work was conducted
by participatory method using focused groups, key informants, individual
interviews, as well as observation by researchers. Data collection covered

technical, social, economic and environmental impact made by the

installed equipment. Participants in the research included owners of the
sugar processing plants, Sugarcane farmers (including out growers),
employees in the sugar plant (operators), and the surrounding
communities. Action oriented research was adopted so as to feed
solutions to the problems relevant to the participating research partners.
Sites for carrying out the study were identified as in Ashoknagar regions,
making a sample size of. These fall into two main categories, namely
those ones supplied with sugarcane from out growers and those utilising
sugarcane from their own farms. It was expected that the socio-economic
characteristics of the two categories would be diferent.
The basic information required for the study was collected as per sample
questionnaire. Separate questionnaires were also prepared for
surrounding village governments, sugarcane out growers, sugar
consumers, and supporting mechanical workshops

Types of research technique

The various types of research which a researcher can apply in order to
achieve ones desired objective. Therefore to achieve the objectives of my
research I have used Qualitative Descriptive along with scientific research.
This is based on proper research design to meet the objectives of the
study.
Sampling is done with combination of judgement &
Convenience The process of judgement, or purposive, sampling is based
on the assumption that the researcher is able to select elements which
represent a typical sample from the appropriate target population. The
quality of samples selected by using this approach depends on the
accuracy of subjective interpretations of what constitutes a typical sample.
It is extremely difficult to obtain meaningful results from a judgement sample
because no two experts will agree upon the exact composition of a typical
sample. Therefore, in the absence of an external criterion, there is no way in
which in the research results obtained from one judgement sample can be
judged as being more accurate than the research results obtained from
another. A sample of convenience is the terminology used to describe a
sample in which elements have been selected from the target population on
the basis of their accessibility or convenience to the researcher.
Convenience samples are sometimes referred to as accidental samples for
the reason that elements may be drawn into the sample simply because they
just happen to be situated, spatially or administratively, near to where the
researcher is conducting the data collection.
The main assumption associated with convenience sampling is that the
members of the target population are homogeneous. That is, that there
would be no diference in the research results obtained from a random

sample, a nearby sample, a co-operative sample, or a sample gathered in

some inaccessible part of the population. As for judgement sampling, there is
no way in which the researcher may check the precision of one sample of
convenience against another. Indeed the critics of this approach argue that,
for many research situations, readily accessible elements within the target
population will difer significantly from less accessible elements. They
therefore conclude that the use of convenience sampling is likely to introduce
a substantial degree of bias into sample estimates of population parameters.

What Is a Real Hypothesis?

A hypothesis is a tentative statement that proposes a possible explanation
to some phenomenon or event. A useful hypothesis is a testable
statement which may include a prediction. A hypothesis should not be
confused with a theory. Theories are general explanations based on a
large amount of data.
1) According to process Management
H0 = Manufacturing Process Management is not efective for improving
the performance of industries.
H1 = Manufacturing Process Management is efective in Sugar industries.
2) Application- Process Management in distillery
In sugar mill integrated plan for sugar as well as ethanol/spirit production.
Company want to improve the production in distillery. But basically it
required large amount of steam. As per steam generation with respect to
Cost Analysis Company Want alternative solution for production process.
Following hypothesis for that
H0= Arrangement of Separate Boiler for optimized process.
H1= Sharing with Co-Generation Boiler for steam purpose.
H2=Tie up with 4 steam boiler for steam sharing purpose.
H3=Combined H1 & H2 Hypothesis
H4=Seasonal Production

Data collection
The data collection was done mostly during crushing season, which
usually takes 180-210 days (6-7 months) a year, starting from the month
of June or July. A good research required for comprehensive data collection

and analysis and also to investigate the dynamics of the sugar industry in
and the village level sugar processing plants in particular.
Data collected was analysed qualitatively as well as
quantitatively by computer coding using Microsoft Excel programmes.
Descriptive statistics, mainly the frequency distribution was used to
analyse the level of impact made by the installed equipment.
Conferences, seminars and workshops were utilised to discuss and
evaluate the existing problems facing the sugar industry. Participants in
those included key players in the sugar industry and technology in
general. These include international experts and officials from government
ministries (Industries and Trade, Agriculture, Planning Commission,
Research Institutions and Finance), and the private sector (potential
entrepreneurs and traders).
The framework for technological appropriateness in rural
development in
The project was to check the opinion of the Manufacturing Process
Management users about whether it helps in developing efectiveness in
the business using primary as well as secondary data. The primary data
was obtained through observation, direct communication with the people
in industries.
Data Collection Tool
The data collection tool that I have used is Questionnaire & technical
information of industry . I have selected questionnaire as a data
collection tool primarily because of descriptive nature of sampling &
secondly it was the most suitable tool that could help in achieving all
the objectives of the study & to do the analysis deeply and
efectively.
I directly communicate with management body and employees working in
Engineering, Production department of the firm.
.

Primary data
Direct communication with people in the industries which are from various
department.
Secondary data
Secondary data was collected from other organisations involved with the
technology such as Sanjivani SSK & other chemical industries/ distillery,
relevant regional and district government offices etc. Secondary data is
also collected from industries documents

2. ANALYSIS AND INTERPRETATIONS

What is Process Management?
Process management is the ensemble of activities of planning and
monitoring the performance of a process. The term usually refers to the
management of business processes and manufacturing processes.
Business process management (BPM) and business process reengineering
are interrelated, but not identical.
Process management is the application of knowledge, skills, tools,
techniques and systems to define, visualize, measure, control, report and
improve processes with the goal to meet customer requirements
profitably. It can be diferentiated from program management in that
program management is concerned with managing a group of interdependent projects. But from another viewpoint, process management
includes program management. In project management, process
management is the use of a repeatable process to improve the outcome
of the project.
ISO 9001 promotes the process approach to managing an organization.
...promotes the adoption of a process approach when developing,
implementing and improving the efectiveness of a quality management
system, to enhance customer satisfaction by meeting customer
requirements. Source: clause 0.2 of ISO 9001:2000
Manufacturing process management (MPM) is a collection of
technologies and methods used to define how products are to be
manufactured. MPM difers from ERP/MRP which is used to plan the
ordering of materials and other resources, set manufacturing schedules,
and compile cost data.
A cornerstone of MPM is the central repository for the integration of all
these tools and activities aids in the exploration of alternative production
line scenarios; making assembly lines more efficient with the aim of
reduced lead time to product launch, shorter product times and reduced

work in progress (WIP) inventories as well as allowing rapid response to

product or product changes.
Manufacturing process management (MPM) Solutions for Process
Industries are integrated applications that provide process manufacturers
with the means to plan and schedule, track and analyse, and direct and
operate their operations.
The global manufacturing economy seems to be back on track with just
about all regions of the world ramping up spending, after a tumultuous
couple of years. Over the past several years, the market has been
delayed due to the economic conditions and there is pent up demand for
MPM solutions that were postponed during the recession.
Companies are continuing to look for ways to improve operational
efficiency, meet regulatory compliance regulations, improve visibility, and
reduce costs. Succeeding in todays global climate requires innovation
and operational excellence along several dimensions such as dynamic
value creation, supply chain synchronization and visibility, and achieving
cost efficient operations. Manufacturers are using MPM to enhance their
ability to innovate and adapt their products and services to changing
market conditions. MPM provides the visibility to uncover opportunities
for innovation and demand. It captures and automates business
processes and can include operations intelligence, workflow management,
so that they can be easily modified when needs change. Applications
range from operations intelligence, recipe management, material tracking
and more. The MPM market continues to grow because it improves
visibility, track and trace, and the bottom line.
Production Development Process
The core element of MPM is the Production Development Process (PDP)
which was developed in order to provide a global planning approach to our
customers from the very first ideas to the production launch. This process
encompasses three main steps with seven interdependent phases with
specific tasks in each phase. The tasks ensure all areas of the production
are planned to the same strategy and quality level.
Concept Planning
General boundary conditions
Initial process development

Floor space / Plant layout / Head Count

Equipment and Investment

First indication of Production Cost

Detailed Planning
Supplier selection
Process development

Equipment build-up

Pre-acceptance co-ordination

Realisation
Installation management
Production validation

Ramp-up support

Each phase of the PDP has its own detailed process. Defined quality gates
secure the fulfilment of the required activities and release to the
interdependent phase. This enables us to ensure the production is
developed in view of optimum manufacturing processes, quality, and
investment.

Fig. MPM functional Area

Process Development & Process Monitoring
The analytical techniques and expertise available at MPM are suitable for
more than just troubleshooting and addressing specific problems
reactively, once they have occurred. They can also be used proactively,
during research and development, to provide information on test or pilot
samples as new processes are being developed. The use of good

analytical experimental design early and often in the development cycle

can avoid costly trial-and-error repetition and may uncover potential
issues at an early process stage.
Once a process is up and running, EAG can provide on-going monitoring
during the production cycle, to help customers catch process deviations
before they lead to potentially very costly manufacturing issues. Routine
testing of production samples can help detect issues and quality
variations in material suppliers, equipment vendors, and cleaning and
maintenance procedures before they become major problems.
Potential Use Scenarios
Routinely monitor incoming material batches from suppliers before
they enter production
Use routine analyses to monitor incoming and in-use process

Monitor control samples to evaluate changing environmental

conditions or contaminants in a production facility

Spot-check mid-production samples for characteristics such as layer

thickness, doping uniformity, or the presence of contaminants

Compare new material parameters with an established baseline

Fig. MPM from concept to customer

Manufacturing processes within the production and quality areas such as
assembly, inspection, testing, receiving, fabrication, sterilization,
packaging, and others all require a careful process development method.
Taking a project from concept to the manufacturing floor allows flexibility
to provide for a carefully planned and thought out process enabling a

smooth transition from engineering to manufacturing. Each development

project with the eventual serial production process in mind.
Managers & engineers develop the process sequence, labor requirements
and operator work assignments in accordance with ISO 13485 / ISO 9001
and FDA to achieve an efficient and safe production operation. This is
ensured through the following process development steps:
Proven Process gives you the opportunity and the confidence to outsource
your entire project. Proven Process can take a product from inception to
delivery. Because we take the time to fully understand and properly
specify your requirements, Proven Process creates the right design for
your product. PROVEN PROCESS seamlessly transitions from product
concept through product approval and production. The process provides
the assurance of market delivery. Concept to Customer Turnkey Service
includes every step in the process that leads you to your own customers
door:

Benefi ts of MPM
360 degree view of business
Organizational-level data sharing
Reduce cost on customer acquisition
Centralized process interaction
Improved processes support
Increase product & service quality
High rate of customer retention
Boost new business
Increase revenue at low cost
Application
1) H0= Arrangement of Separate Boiler for distillery to optimized process.

According to this option the following subcategories are explain

A) Cost
COST
Operational cost

INCLUDE

APP.COST

REMARK

Production
,manufacturing

Increase
because boiler
system is upto
30%

Highly increased

Overall

Budget increase
upto 10-16
crores

Highly increased

Bagasse

Extra boiler fuel

upto 25%

Highly increased

Supervisor,
labour

20%

Highly increased

Various
parameter

20%

Highly increased

Financial cost

Fuel cost
Labour cost
Process cost

Installation cost
Boiler, civil
work ,pipeline

7-8 crores

Highly increased

STATUS

LIMITATION

REMARK

Good

Good for medium

scale boiler

Excellent

Highly increase
in efficiency of
process

Efectiveness of
Process
Flexibility of
Process

Good

efective

Yes

Optimization of
Process
Maintenance

Good

High
maintenance

Adding time

Extra
maintenance for
boiler & system

ALCOHOL
Good
Good
6-7 month
depend
tank

MOLLASES
Good
Good
6-7 month
depend

B) Technical Aspect
TECHNICAL
ISSUE
Steam Economy
Efficiency of
Process

3) Analysis of process
PRODUCTION
PROCESS
SEASON OF
PRODUCTION
STORAGE

SUGAR
Good
Good
6-7 month
Warehouse

2) H1= Sharing with Co-Generation Boiler for steam purpose.

A) Cost
COST
Operational cost

INCLUDE

APP.COST

REMARK

Co-Gen Boiler
and

10%

Slightly
Increased

Production
,manufacturing
Financial cost
Overall cost

Increased by
20%

Not much

For boiler only

Increased 20%

Not much

Extra worker
supervisor

10%

Not much

Various
parameter

10%

Slightly
Increased

Steam supply
system ,pipeline

10%

Slightly
Increased

STATUS

LIMITATION

REMARK

Not good

Sharing with cogen boiler it not

match steam
parameter

Not good for

boiler steam
economy

Bad

Sharing purpose
is not good
purpose

Efficiency Is
decreased both
system

Not good

No

Not

Not flexible you

have shared
system that
afect both

No

Bad

Slightly

High

Two aspect that

High

Fuel cost
Labour cost
Process cost
Installation cost

B) Technical Aspect
TECHNICAL
ISSUE
Steam Economy

Efficiency of
Process

Efectiveness of
Process
Flexibility of
Process

Optimization of
Process
Maintenance

difficult

3) Analysis
PRODUCTION
PROCESS
SEASON OF
PRODUCTION
STORAGE

SUGAR
Average
Average
6-7 month

ALCOHOL
Average
Average
6-7 month

MOLLASES
Average
Average
6-7 month

Warehouse

Storage Tank

3) H2=Tie up with 4 steam boiler for steam sharing purpose.

A) Cost
COST
Operational cost

INCLUDE

APP.COST

REMARK

Boiler,
Production
,manufacturing

Increased up to
30%

high operation
cost increased
because 4 boiler
& system

Overall

Up to 30%

High

Financial cost
Fuel cost
Bagasse

Up to 20%

High

Labour cost
Supervisor,
labour

10%

High

Various
parameter

27%

High

steam supply
system, civil
construction,
other installation

15%

medium

Process cost
Installation cost

B) Technical Aspect
TECHNICAL
ISSUE
Steam Economy

Efficiency of
Process

Efectiveness of
Process
Flexibility of
Process
Optimization of
Process

STATUS

LIMITATION

REMARK

Not good

25% of steam on
each boiler is for
distillery is afect
main production

average

Bad

average

No

average

No

average

No

average

high

high

SUGAR
Average
Average
6-7 month

ALCOHOL
Average
Average
6-7 month

MOLLASES
Average
Average
6-7 month

warehouse

Storage tank

APP.COST

REMARK

Maintenance

3) Analysis of process
PRODUCTION
PROCESS
SEASON OF
PRODUCTION
STORAGE

4) H3=Combined H1 & H2 Hypothesis

A) Cost
COST

INCLUDE

Operational cost
Boiler,
Production
,manufacturing

Up to 45%

Highest

Overall

Up to 35%

Medium

Bagasse

25%

Low

Supervisor,
labour

20%

Highest

Various
parameter

40%

High

steam supply
system, civil
construction,
other installation

26%

Low

STATUS

LIMITATION

REMARK

Good

average

Slightly efective

Good

Not

Good

No

Good

No

Average

Very high

Bad

Financial cost
Fuel cost
Labour cost
Process cost
Installation cost

B) Technical Aspect
TECHNICAL
ISSUE
Steam Economy
Efficiency of
Process

Efectiveness of
Process
Flexibility of
Process
Optimization of
Process
Maintenance

3) Analysis of process
PRODUCTION
PROCESS
SEASON OF
PRODUCTION
STORAGE

SUGAR
Nice
Nice
6-7 month

ALCOHOL
Nice
Nice
6-7 month

MOLLASES
Nice
Nice
6-7 month

Warehouse

Storage tank

INCLUDE

APP.COST

REMARK

Boiler,
Production
,manufacturing

10%

Low

Overall

15%

Medium

Bagasse

12%

Low

Supervisor,
labour

16%

Low

Various
parameter

8%

Low

steam supply
system, civil
construction,
storage tank,
other installation

25%

Medium

5) H4=Seasonal Production

A) Cost
COST
Operational cost

Financial cost
Fuel cost
Labour cost
Process cost
Installation cost

B) Technical Aspect
TECHNICAL
ISSUE
Steam Economy
Efficiency of
Process

Efectiveness of
Process
Flexibility of
Process
Optimization of
Process

STATUS

LIMITATION

REMARK

Good

Excellent

High

high

Good

High

Good

Good

Nice

Yes good

Low

low

ALCOHOL
Excellent
Excellent
After sugar
season 5-6
month
Storage tank

MOLLASES
Excellent
Excellent
6-7 Month

Maintenance

3) Analysis of process
PRODUCTION
PROCESS
SEASON OF
PRODUCTION
STORAGE

SUGAR
Excellent
Excellent
6-7 Month
Warehouse

Storage Tank

Existing model is 3:1 type means 3 boilers for sugar mill 1 boiler for
distillery.
HYPOTHESIS

ADVANTAGE

A) 1.
2.
B)H0
H1

HIGH
Process
-

DISADVANTAGE SELECTION
PRIORITY
HIGH
LOW
LOW
HIGH
Finance
HIGH
Process ,
low

H2

H3

Process &finance

H4

Process ,finance,
production

production
Process ,
production
Process ,
production
Time

low
good
HIGHEST

3. CONCLUSION AND RECOMMENDATIONS

According to the various factors it suggests that Process management
have assumed importance as tools for creating and sustaining
competitive advantage. The integration strives to satisfy and promptly
deliver the products, ensuring availability of product and maintaining
profitability of the manufacturer. It ensures that better quality is
ofered, technology is implemented in a phased fashion and the
connection from customer to supplier is extended. The evolution and
implementation of Manufacturing Process Management is discussed. A
Manufacturing model for efficiency of fully integrated organization and
its implementation is discussed. A case study of Process Management
is discussed to show the advantages of integration.

4. BIBLIOGRAPHY
www.wikipedia.org
www.microsoft .com/dynamix
A Typology of Production Control Situations in Process Industries
Jan C. Fransoo Eindhoven University of Technology, The Netherlands
Process industry supply chains: Advances and challenges Nilay Shah
Centre for Process Systems Engineering, Department of Chemical Engineering, Imperial
College London, London

1. Kochalka, T.S., MRP in a Process Industry Why Wait?, Production and

Inventory
Management Journal, Vol. 19 No. 4, 1978, pp. 17-20.
2. Duncan, R.M., The By-product Bill of Material, APICS Conference
Proceedings, 1983,
pp. 288-92.
3. Nelson, N.S., MRP and Inventory and Production Control in Process
Industries,
Production and Inventory Management Journal, Vol. 24 No. 4, 1983, pp. 15-22.
4. Taylor, S.G., Sewart, S.M. and Bolander, S.F., Why the Process Industries Are
Diferent,
Production and Inventory Management Journal, Vol. 22 No. 4, 1981, pp. 9-24.
5. Connor, S.J., Process Industry Thesaurus, American Production and Inventory
Control
Society, Falls Church, VA, 1986.
6. Wallace, T.F. (Ed.), APICS Dictionary, 5th ed., American Production and
Inventory Control
Society, Falls Church, VA, 1984.
7. Sepehri, M., Silver, E.A. and New, C., A Heuristic for Multiple Lot Sizing for an
Order
under Variable Yield, IIE Transactions, Vol. 16 No. 1, 1986, pp. 63-9.

5. ANNEXURE

Questionnaire
What strategy you used to improve your process?
Are you using Process management in your company?
Do you think it is efective?
How do you keep track of your production?
How do you know, which process are useful in your production?
Is there any improvement in the profits of business after you start
working on MPM?
How it is helpful in Production?
Do you have any substantial increase in benefits with respect to profit?
What do you think MPM is related to Production?
If YES how it is related?

Can the integrated model of MPM and Finance be implemented in

future? How?

Process Control Management at British Sugars Allscott Sugar Factory

British Sugar, part of the Associated British Foods (ABF) group is the leading sugar
supplier in the UK, providing sugar for the top brand names in sugar confectionery,
chocolate confectionery, soft drinks and preserves etc.
British Sugar has six sugar factories across the UK, and each factory is split between a beet end
and a sugar end. Typically, a factory processes beet between September and March, termed the
Campaign. The beet end employs various processes to create thick juice a liquid which has a
65% sugar content. The sugar end boils the thick juice and seeds it with tiny sugar crystals which
provide the nucleus for larger crystals to form and grow to create sugar. The business of processing
beet gives rise to several interesting challenges which directly affect process efficiency, sugar yields
from the beet, and ultimately factory profitability. British Sugar needs to consider several factors: They
must carefully manage relationships with beet growers so that the sugar content in the beet is at the
highest percentage at the time of harvest; The process plant needs to be thoroughly tested and
operational in time for commencement of the campaign and factory managers must quantify and
schedule the amount of beet which can be received at the factory to match process plant capacities,
knowing that once the beet is harvested, the sugar content in the beet reduces over time. Outside of
the campaign a factory undergoes an extensive maintenance programme. If a factory can store the
thick juice the sugar end processes can continue to produce sugar long after beet harvesting has
finished. This enables the factory to utilise its sugar end equipment, therefore maximizing a greater
Return on Capital Employed (ROCE). As part of a strategic business development program to
maximize economies of scale and usage of process plant across each sugar factory, the sugar factory
at Allscott,
Shropshire was identified for major expansion to meet overall business objectives. The
planned expansion would approximately double capacity to 850,000 tonnes of sugar beet every year
and extends the production cycle of the sugar end processes beyond the end of the campaign. This
daunting target was met by enhancing 50 percent of the factory (beet end) over a two-year time
frame. The expansion of the beet end processes involved the construction of two thick juice storage
tanks, and associated process control. These new tanks have a combined storage capacity of 86,000
tonnes. The scheme also involved the implementation of replacement process control schemes for
another six sub processes,
2001/2002 Allscott factory Upgrade
1 - Beet Intake
2 - Pre Scalder
3 - Wet Pulp
4 - Lime Kiln
5 - Rotary Vacuum & GP Filters
6 - Falling Film Evaporators (FFE)
7 - Factory Wide Heating Duties
8 - Thick juice import & export
Pre 2000 Process Enhancements
9 - Pelleting
10 - Boiler & Turbine Control
11 - Pans
12 - Sugar Screening
13 - Sugar Silo Air Conditioning
The Allscott factory has been producing sugar since 1927, and to date this project is the largest in the
history of the site. The selection of the correct process control specialist was critical to achieving a

smooth implementation, therefore particular emphasis was placed on proven project management
and in-depth knowledge of disparate control systems. In this case Rockwell Allen Bradley for
sequence control, and Eurotherm for complex continuous control. The process control aspects
required the re-configuration of redundant control equipment coupled with the integration of new
control equipment. Process control programming software was used to configure nine control panels
located geographically around the site, communicating over a fibre optic network to supervisor
workstations. The nine control panels contain numerous distributed processors.
To complement the changes carried out at the factory floor level the sites
supervisory systems were upgraded. Servers were enhanced and workstations added to provide
operators with the high visibility required to control the new and modified processes. By factory startup over seventy graphic pages and windows had been created or modified, and in excess of a
thousand tags had been added to the various databases. Like many advanced manufacturing plants
British Sugar require significant amounts of data to be recorded for plant optimisation and product
traceability. In this instance a dedicated, high-availability server was assigned to manage the
collection and storage of factory floor data for various Manufacturing Execution System (MES) related
tasks. These included: the configuration and presentation of key trend data; the management of the
interface between factory data and the companys Wide Area Network (WAN); the conversion and
archive of data onto the companys Oracle database and the backup of all the control server images
and databases.
The significance of this project did not allow for any compromise, delay or partial
failure. Flexibility, reliability and best in class were the terms of reference. Any delay in factory start up
would directly affect the supply chain, and process failure could result in customer commitments not
being met and/or the implementation of costly alternative strategies. As before, British Sugar turned to
Charter Tech, an independent systems integrator with proven experience of integrating disparate
control systems and over ten years experience of providing solutions and services to British Sugar
across the majority of its factories. Charter Tech personnel assisted with all stages of the project from
initial consultation to final implementation and commissioning. Charter Tech engineers worked side by
side with the British Sugar project team, during the entire project life cycle to ensure the final solution
met the business requirements and maximized plant efficiency. The flexibility and approach of Charter
Tech personnel allowed British Sugar staff to develop solutions to problems as they occurred.
The British Sugar Project Engineer commented
I enjoyed the way that the Charter Tech team responded, sometimes at short notice, to problems
without fuss to ensure the job got completed.