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PROJECT REPORT
On
By
SUBMITTED TO
In partial fulfillment of the requirement for the award of the degree of Master
of Business Administration (MBA)
THROUGH
PUNE giving me an opportunity to work with one of the leading Electrical and
Automation Company in India. This experience at the beginning of my career will be a
very important step towards being a successful manager. There have been many hearts and
brains supporting and guiding me in this project.
I would like to thank Mr. ATUL ATRE for giving me the necessary insight in my study.
I take this opportunity to express my deep sense of gratitude and respect to my internal
project guide Prof.Abhijeet Savagave, without whose constant guidance, it would not
have been possible to complete the project.
1
My profound gratitude to Director, SBS Prof.Chetan Chaudhari, who is always a source
of inspiration.
I also wish to express a special thanks to all teaching and non- teaching staff members, the
Sinhgad Business School, Pune and all the staff .for their support. The support is gratefully
acknowledged.
PRANAV BANGUDE
i
TITLE INDEX
ii
6.4 METHOD OF DATA COLLECTION ............................................................................. 35
6.5 SAMPLING TECHNIQUE USED ................................................................................. 36
7. DATA COLLECTION ..................................................................................37
7.1 PRODUCTION PLANNING AT BIZLINK ................................................ 39
7.2 LOADCHART ........................................... Error! Bookmark not defined.
7.3 PLANNING SHEET .............................................................................. 40
7.4 MANUFACTURING SCHEDULE ........................................................... 41
7.5 THE PROCESS .................................................................................... 42
8. DATA ANALYSIS .......................................................................................45
8.1 MASTER PLAN TABLE ............................................................................................... 47
8.2 INVENTORY .............................................................................................................. 49
8.3 SCRAP FACTOR ........................................................................................................ 51
8.4 INTERPRETATION OF DATA ..................................................................................... 52
9. FINDINGS AND CONCLUSION ..................................................................60
9.1 FINDINGS ................................................................................................................. 62
9.2 CONCLUSION ........................................................................................................... 62
10. LIMITATIONS OF THE PROJECT ..............................................................64
11. CONTRIBUTION TO THE HOST ORGANISATION .....................................66
RECOMMENDATIONS ............................................................................................................. 68
12. BIBLIOGRAPHY ......................................................................................69
Books: ............................................................................................................................ 70
Website: ........................................................................................................................ 71
13. ABBREVATIONS .....................................................................................72
ANNEXURE ..................................................................................................74
iii
LIST OF CHARTS, DIAGRAMS AND GRAPHS
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Study and Analysis of Production and Control
CHAPER NO 1:
1. EXECUTIVE SUMMARY
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Study and Analysis of Production and Control
The research designed to examine the Influence and Importance of Production Planning
and Control in the company. This project has designed to find out how production planning
and control at Bizlink can be improved to achieve the organizational aims and objectives.
The project has been developed to identify the need and importance of Production Planning
and Control in manufacturing industry. This therefore draws the attention of organization
that practice it to realize the beat way for effective proper production planning and control
needed for the operations.
Various activities are supported by Production Planning and Control like- Materials
Planning, Purchasing, Raw Material, Inventory Control, Capacity Planning, Scheduling
Machine and People, WIP Inventory Control, Coordinate Customer Orders, Finished
Goods Inventory Control Production planning is done with the objective of coordination
of materials with suppliers, efficient utilization of people and machines, efficient flow of
materials, and communication with customers.
In this project, objective is to study production planning and control works to find out the
deficiency and bottleneck in the process and to give suggestions for the process
improvement which will help the organization to improve efficiency and effectiveness.
This study also contain study analysis of material requirement planning, importance of
material management. This project also try to implement the different practices to
smoothing the operation which will helps to improve efficiency and effectiveness.
The research method adopted for this study are both primary and secondary in nature. The
primary date include questionnaire designed for the gathering of relevant and accurate
information from the employees of the organization. The secondary sources of data include
information which were already recorded on the subject of study.
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Study and Analysis of Production and Control
CHAPTER NO 2:
2. OBJECTIVES& SCOPE OF PROJECT
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Study and Analysis of Production and Control
4
Study and Analysis of Production and Control
Objective of the study is to prove that the production planning and control practices has
impact on the efficient utilization of the resources, waste reduction, reduce waiting time
and processing, thus contributing to the profitability of the industry. On these premise the
study accentuated to address questions in order to achieve the following objectives:
Primary Objectives:
To study various aspect of production planning and control
To study current process of production planning and control at BIZLINK PVT. Ltd.
To study importance of material requirement planning.
To find out deficiencies and bottle neck in the processes.
.
Secondary Objectives:
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Study and Analysis of Production and Control
The scope of production planning and control is very vast however this project will give
glimpse of how PPC works at Bizlink services scope of this project can be summarized in
following points
To know how production planning and control works at Bizlink services pvt ltd
This academic work intents to throw light on importants of material requirement
planning and proper material management.
Find out the deficiency and bottleneck in the process.and to give suggestions for
the process improvement which will help the organization to improve efficiency
and effectiveness.
Implementing the practices to improve the process.
Questioner is also used to get more information about the process.
Materials
Planning for procurement of raw materials, components and spare parts in the right
quantities and specifications at the right time, from the right source and at the right price
.Purchasing, storage, inventory control, standardization, variety reduction, value analysis
and inspection are the other activities associated with materials.
Inspection
Evaluating
The objective of evaluation is to improve performance. Performance of machines,
processes and labor is evaluated to improve the same.
Cost Control
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Study and Analysis of Production and Control
Manpower
Planning for manpower (labor, supervisory and managerial levels) having appropriate
skills and expertise.
Routing
Determining the flow of work, material handling in the plant and sequence of operations
or processing steps. This is related to considerations of appropriate shop layout and plant
layout temporary storage locations for raw materials, components and semi-finished goods
and of materials handling systems.
Estimating
Establishing operation times leading to fixation of performance standards both for workers
and machines.
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Study and Analysis of Production and Control
CHAPTER NO. 3
3. COMPANY PROFILE
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
The Indian electrical equipment industry comprising of multinationals, large medium &
small players is fully geared up producing, supplying and exporting a wide variety of
electrical equipment including switchgear and control gear items needed by the expanding
industrial and power sector on which we focus in this article. This industry sector in fact
manufactures the entire voltage range from 240 V to 800 KV. 1200 kV equipment is under
indigenous development for the 1200Kv Test station . The current technology level in India
is Contemporary.
Currently, the MV & HV segments are suffering from overcapacity due to lack of orders.
Inadequate demand could be due to insufficient planning by the users and delay in
finalizing tenders. Unfortunately bunching of orders also creates supply-delivery problems,
Also L1 ( lowest quoted price) procurement system followed by all utilities i.e. procuring
products at lowest price creates a hurdle for bringing good quality material in the system.
Further insistence on repeated type testing of products in spite of inadequate type testing
laboratories poses additional delays and harm to the equipment.
The present size of the switchgear market estimated at about Rs.13,500crore and the
industry grew by 21 per cent in volume terms in FY13. Overall exports decreased by 15
per cent, whereas imports increased mainly for MV/HV switchgear by more than 50 per
cent. Weightage of switchgear industry based on IEEMA electrical industry Index is 15.2
per cent.
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Study and Analysis of Production and Control
Industry Segmentation
120%
100% 8%
25% 16%
80%
60%
40% 92% 84%
75%
20%
0%
Low voltage Medium & High voltage Overall
Organized Unorganized
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Study and Analysis of Production and Control
Strengths:
Bizlink engineering –engine components industry in India is currently valued at
INR 135bn (~USD 2billion) in FY 2013 and has been growing at ~15% for the last
three years. It is been estimated that the industry will be worth approximately INR
215bn (~USD 3.5billion) by FY 2017, growing at a diminished CAGR of ~10%.
Low voltage switchgears, which account for more than 55% of the total market, has
a higher share of unorganized players and it is anticipated to increase in the coming
years. The forward integration of these unorganized players to medium and high
voltage segments can lead to an increase in the unorganized market share in these
segments too, which is currently dominated by five or six players
Weaknesses
industry has to largely depend on the financially weak EBs for its sales, The EBs
condition has increasingly worsened over the years.
Uncertainty & slow pace of reforms
Increasing Competition from unorganized sector and Chinese imports
Macroeconomic challenges which constrain public & private funding and High
Interest rates
Low investments in R&D, Lack of Innovation
Integration/Assimilation of new technologies into development of new products in
the sector needs improvement
L1 procurement system in utilities i.e. procuring products at lowest price creates a
hurdle for bringing good quality material in the system.
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Study and Analysis of Production and Control
Opportunities
Generation capacity is expected to be augmented by around 150,000MW under
11th & 12th Five Year Plan (2007-2017). More than 60000 MW under
construction.
The T & D network expansion
Schemes like APDRP and RGGVY are providing an excellent opportunity for the
LV and MV under, “Electricity for All” initiative
Expansion of key industry sector (cement steel petrochemicals, telecom & others)
Expansion of Infrastructure like Telecom, Railways, Airports, ports, Roads,
Hospitals etc.
Replacement & retrofitting programmers.
800-1200kV transmission line development
Threats
Underutilization of installed capacity
Lack of HV switchgear test facilities in the country
Increasing competition from unorganized sector in low end/low tech items/imports
in LV segment and project imports.
One sided contracts by the user industries/ Price Variation contracts not accepted
by many users
Improper procurement planning/bunching of orders,
Entry of unproven contractors/ sub-contractors with minimal technical knowledge.
Lack of standard specification and design parameters clubbed with increasing trend
of customization is adversely impacting the delivery schedule as well as taking
away benefits of economies of scale.
The new Clause of consequential damages which in short means an organization
supplying an equipment is not only responsible for the supply but also for the
damages arising out of the equipment.
CHAPTER NO 4
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Study and Analysis of Production and Control
4. THEREOTICAL BACKGROUND
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
Production Planning and Control involve generally the organization and planning of
manufacturing process. Especially it consists of the planning of routing, scheduling,
dispatching inspection, and coordination, control of materials, methods machines, tools and
operating times. The ultimate objective is the organization of the supply and movement of
materials and labour, machines utilization and related activities, in order to bring about the
desired manufacturing results in terms of quality, quantity, time and place.
Production Planning and Control (PPC) is a process that comprises the performance of
some critical; functions on either side, viz., planning as well as control.
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Study and Analysis of Production and Control
(1) An analysis of the article to determine what to make and what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their sequence.
(4) A determination of lot sizes
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Study and Analysis of Production and Control
Scheduling
It means working out of time that should be required to perform each operation and also
the time necessary to perform the entire series as routed, making allowances for all factors
concerned. It mainly concerns with time element and priorities of a job. The pattern of
scheduling differs from one job to another which is explained as below:
Production schedule: The main aim is to schedule that amount of work which can easily be
handled by plant and equipment without interference. It’s not independent decision as it
takes into account following factors.
(1) Physical plant facilities of the type required to process the material being scheduled.
(2) Personnel who possess the desired skills and experience to operate the equipment and
perform the type of work involved.
(3) Necessary materials and purchased parts.
Master Schedule: Scheduling usually starts with preparation of master schedule which is
weekly or monthly break-down of the production requirement for each product for a
definite time period, by having this as a running record of total production requirements
the entrepreneur is in better position to shift the production from one product to another as
per the changed production requirements. This forms a base for all subsequent scheduling
acclivities. A master schedule is followed by operator schedule which fixes total time
required to do a piece of work with a given machine or which shows the time required to
do each detailed operation of a given job with a given machine or process.
BIZLINKManufacturing schedule: It is prepared on the basis of type of manufacturing
process involved. It is very useful where single or few products are manufactured
repeatedly at regular intervals. Thus it would show the required quality of each product and
sequence in which the same to be operated
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Study and Analysis of Production and Control
Loading
The next step is the execution of the schedule plan as per the route chalked out it includes
the assignment of the work to the operators at their machines or work places. So loading
determines who will do the work as routing determines where and scheduling determines
when it shall be done. Gantt Charts are most commonly used in small industries in order to
determine the existing load and also to foresee how fast a job can be done. The usefulness
of their technique lies in the fact that they compare what has been done and what ought to
have been done.
Most of a small scale enterprise fails due to non-adherence to delivery schedules therefore
they can be successful if they have ability to meet delivery order in time which no doubt
depends upon production of quality goods in right time. It makes all the more important
for entrepreneur to judge ahead of time what should be done, where and when thus to leave
nothing to chance once the work has begun.
Production control
Production control is the process of planning production in advance of operations,
establishing the extract route of each individual item part\ or assembly, setting, starting and
finishing for each important item, assembly or the finishing production and releasing the
necessary orders as well as initiating the necessary follow-up to have the smooth function
of the enterprise. The production control is of complicated nature in small industries. The
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Study and Analysis of Production and Control
production planning and control department can function at its best in small scale unit only
when the work manager, the purchase manager, the personnel manager and the financial
controller assist in planning production activities. The production controller directly
reports to the works manager but in small scale unit, all the three functions namely material
control, planning and control are often performed by the entrepreneur himself production
control starts with dispatching and ends up with corrective actions.
Dispatching
Dispatching involves issue of production orders for starting the operations. Necessary
authority and conformation is given for:
Follow up
Inspection:
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Study and Analysis of Production and Control
This is mainly to ensure the quality of goods. It can be required as effective agency of
production control.
Corrective measures
Corrective action may involve any of those activities of adjusting the route, rescheduling
of work changing the workloads, repairs and maintenance of machinery or equipment,
control over inventories of the cause of deviation is the poor performance of the employees.
Certain personnel decisions like training, transfer, demotion etc. may have to be taken.
Alternate methods may be suggested to handle peak loads.
Effect of volume/variety:
This is one of the major considerations in selection of manufacturing process. When the
volume is low and variety is high, intermittent process is most suitable and with increase
in volume and reduction in variety continuous process become suitable. The following
figure indicates the choice of process as a function of repetitiveness. Degree of
repetitiveness is determined by dividing volume of goods by variety.
Lead time:
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Study and Analysis of Production and Control
The continuous process normally yields faster deliveries as compared to batch process.
Therefore lead-time and level of competition certainly influence the choice of production
process.
Hence it is very important for entrepreneur to consider all above mentioned factors before
taking a decision regarding the type of manufacturing process to be adopted as for as SSI
are concerned they usually adopt batch processes due to low investment.
.
3.4 BENEFITS TO ORGANIZATION
Production planning and control can facilitate the small entrepreneur in the following ways:
Inventory control:
Proper PPC will help the entrepreneur to resort to just- in- time systems and thereby reduce
the overall inventory. It will enable him to ensure that the right supplies are available at the
right time.
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Study and Analysis of Production and Control
Ensure quality:
A good PPC will provide for adherence to the quality standards so that quality of output is
ensured.
To sum up we may say that PPC is of immense value to the entrepreneur incapacity
utilization and inventory control. More importantly it improves his response time and
quality. As such effective PPC contributes to time, quality and cost parameters of
entrepreneurial success.
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Study and Analysis of Production and Control
CHAPER NO 5
5. COMPANY PROFILE
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
Engine component , cosnstruction and manufacturing company. It is one of the largest and
most respected companies in India's private sector More than seven decades of a strong,
customer-focused approach and the continuous quest for world-class quality have enabled
it to attain and sustain leadership in all its major lines of business.
The company's businesses are supported by a wide marketing and distribution network,
and have established a reputation for strong customer support .The company's businesses
are supported by a wide marketing and distribution network, and have established a
reputation for strong customer support .In response to changing market dynamics has gone
through a phased process of redefining its organization model to facilitate growth through
greater levels of empowerment. The new structure is built around multiple businesses that
serve the needs of different industries.
HISTORY
Bizlink was founded in Bombay (pune) in 1983 by . they were strongly committed to
developing India's engineering capabilities to meet the demands of industry. Beginning
with the import of machinery from Europe, rapidly took on engineering and construction
assignments of increasing sophistication. Today, the company sets global engineering
benchmarks in terms of scale and complexity. Beginning with the import of machinery
from Europe, Bizlink rapidly took on engineering and construction assignments of
increasing sophistication. Today, the company sets global engineering benchmarks in terms
of scale and complexity.
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Study and Analysis of Production and Control
Independence and the subsequent demand for technology and expertise offered Bizlink the
opportunity to consolidate and expand. high quality of products and services, and strong
customer orientation. It is also taking steps to grow its international presence.
Bizlink pune
5.2 PRODUCTS
BIZLINK is the market leader for switchboards in India. It manufactures custom-built
switchboards with conventional as well as intelligent protection, control and
communication to meet the power distribution and motor control needs of key industries.
It’s Power Control Centers (PCC) and Motor Control Centers (MCC) are installed at major
and prestigious plants in India.
Bizlink manufactures maximum number of panels every year and has a steady market
share. It associates with its customers at the project conceptualization stage and the
association continues even after the project is commissioned
Bizlink offers assistance in product selection, application engineering and detailed
engineering, installation and commissioning, retrofitting and upgradation of switchboards,
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Study and Analysis of Production and Control
after-sales service and training. It also designs and manufactures enclosures in flat pack
systems for switchboard assemblers world-wide.
Bizlink foster a culture of caring trust and continuous learning while meeting expectations
of employees, stakeholders and society.
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Study and Analysis of Production and Control
29
Study and Analysis of Production and Control
A M ATRE
Group Executive Chairman
S C Bhargava
Senior VP E&A
Debashish Chatterjee
General Manager
ESE-MV
Ahmednagar
Purchase &
Planninghcjskc
Production Head
Design Head
HRdfHead
df
df
df
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Study and Analysis of Production and Control
CHAPER NO 6
6. RESEARCH METHODOLOGY
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of
Current English lays down the meaning of research as “a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.”
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Study and Analysis of Production and Control
logic behind the method we use in the context of our research study and explain why we
are using a particular method.
The research problem having been formulated in clear cut terms, the researcher will be
required to prepare a research design, i.e., he will have to state the conceptual structure
within which research would be conducted. The preparation of such a design facilitates
research to be as efficient as possible yielding maximal information. In other words, the
function of research design is to provide for the collection of relevant evidence with
minimal expenditure of effort, time and money. But how all these can be achieved depends
mainly on the research purpose. Research purposes may be grouped into four categories,
viz., (i) Exploration, (ii) Description,
(iii) Diagnosis, and (iv) Experimentation. A flexible research design which provides
opportunity for considering many different aspects of a problem is considered appropriate
if the purpose of the
research study is that of exploration. But when the purpose happens to be an accurate
description of a situation or of an association between variables, the suitable design will be
one that minimizes bias and maximizes the reliability of the data collected and analyzed.
TYPES OF DATA
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Study and Analysis of Production and Control
PRIMARY DATA
Primary data are information generated first hand by the research during the field survey
work through questionnaire and interview this information enables the researcher to have
a better understanding and appreciation of the problem.
We collect primary data during the course of doing experiments in an experimental
research but in case we do research of the descriptive type and perform surveys, whether
sample surveys or census surveys, then we can obtain primary data either through
observation or through direct communication with respondents in one form or another or
through personal interviews.
SECONDARY DATA
Secondary data means data that are already available i.e., they refer to the data which have
already been collected and analysed by someone else. When the researcher utilises
secondary data, then he has to look into various sources from where he can obtain them. In
this case he is certainly not confronted with the problems that are usually associated with
the collection of original data. Secondary data may either be published data or unpublished
data.
QUESTIONNAIRE
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Study and Analysis of Production and Control
The questionnaire to obtain the necessary work was designed to obtain the necessary
information needed for the research. The researcher administered the questionnaire mainly
to the employee of the organizations to ensure a constructor and meaning response from
them.
A questionnaire consists of a number of questionsprinted or typed in a definite order on a
form or set of forms. The questionnaire is mailed to respondents who are expected to read
and understand the questions and write down the reply in the space meant for the purpose
in the questionnaire itself. The respondents have to answer the questions on their own.
OBSERVATION
Observation becomes a scientific tool and the method of data collection for the researcher,
when it serves a formulated research purpose, is systematically planned and recorded and
is subjected to checks and controls on validity and reliability. Under the observation
method, the information is sought by way of investigator’s own direct observation without
asking from the respondent.
The main advantage of this method is that subjective bias is eliminated, if observation is
done accurately. Secondly, the information obtained under this method relates to what is
currently happening; it is not complicated by either the past behavior or future intentions
or attitudes. Thirdly, this method is independent of respondents’ willingness to respond
and as such is relatively less demanding of active cooperation on the part of respondents
as happens to be the case in the interview or the questionnaire method.
INTERVIEW
The need for interview rose as a result of some inadequate inherent in data collection. One
of the important reasons for his method is the need to get an in-depth knowledge of the
silent area, which the questionnaire would not address.
CONVENIENCE SAMPLING
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Study and Analysis of Production and Control
there are around 60 line managers and supervisors are working. These 60 people are
universal for this study. Sample size is taken as 50% of universe which is 30.Sample
includes department head, line manager and supervisors.
The research method adopted for this study are both primary and secondary in nature. The
primary date include questionnaire designed for the gathering of relevant and accurate
information from the employees of the organization. The secondary sources of data include
information which were already recorded on the subject of study. They are being used for
some purposes other than that of which they were originally collected The method of data
analysis put in place for the purpose of this study are both descriptive and statistical and
involves the use of tabulation and percentages. Responses will be presented in tables and
will be analyzed in the basic of percentage.
CHAPER NO 7
7. DATA COLLECTION
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
a) Electrical release
b) Mechanical release
c) Work order release
With what?
With Who?
1)SAP
Planner
2) Microsoft Office
Inputs
1) Electrical release Process Outputs
2) Sales order in SAP 1) Planning for 1) Planning Sheet
3) Mechanical release material 2) PR for stock
4) Load Chart 2) MMI control items
5) Request for short
supply
7.1
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Study and Analysis of Production and Control
contains electrical and mechanical details respectively, while work order release contains
fabrication details
This load chart will determine the boards that will be BIZLINK going to manufacture in
month of July, with the help of load chart and electrical, mechanical, and work order release
accordingly material planning is done. This help for determining what labourequipment
capacities are needed to meet the production objectives
Planning sheet is use for material requirement planning.Planning sheet ensure the
availability of materials, components, and products for planned production and for Ensure
the availability of materials, components, and products for planned production and for
customer delivery, maintain the lowest possible level of inventory, Plan manufacturing
activities, delivery schedules, and purchasing activities.
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Study and Analysis of Production and Control
Planning sheet contain various information about the material like board no, material
description PO No (purchase order no), PR No (purchase requisition no), expected date at
which material will be reach and also purchaser. Similar plan sheet is make for electrical,
mechanical, bought out material separately.
Planning sheet helps to track the material. Various different color use in planning sheet
green means all material received, yellow means material yet to receive.
After all release design of load chart and material planning manufacturing schedule is
created.have 2 assembly lines for MV board manufacturing. Manufacturing schedule is
designed for both assembly lines.
Manufacturing schedule have information about panel of which board will be manufacture
on which day. Both assembly lines have capacity of manufacturing 10 panels per day.
According to the deadlines manufacturing schedule is design. Successfulness of
manufacturing schedule depends upon availability of material at right time otherwise
manufacturing schedule get disturbed. If any delay occurs in manufacturing schedule for
any board then it will propagate to next boards so it is important to have material at
schedule time.
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Study and Analysis of Production and Control
DIN Release
Advanced planning
Mechanical &
Electrical Release
PR release
Purchase Order
Incomming
inspection & Quality
MIN Release
7.5 Process
1) DIN Release
DIN stand for design issue note which is release by Design team from Pune. Respective
manufacturing facilities receive DIN from Pune campus. It contains general information of
product and its specifications
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Study and Analysis of Production and Control
2) Advanced planning
Advanced planning done mostly for raw material like copper and aluminum, materials
which are commonly used and material for which lead time is high.
5) PR Release
PR stands for purchase requisition PR is release by Design department. SAP erp system is
used for releasing PR. For each PR item cat no is created. Which contains detail
specification of that component. Releasing PR means design department have given green
signal for that material.
6) Purchase Order
Purchase Order is created and release by purchase department. PO contain PR no of
respective material its vendor, price of that material po& expected date, different taxes. For
creation of PO SAP erp system is used.
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Study and Analysis of Production and Control
This again one of crucial process. Following process is used for inspection and quality.
d) HT Test
HT test stand for high temperature test. This test determine whether material able
to perform properly at high temperature have highly qualified lab for HT testing.
8) MIN Release
MIN stands for material issue note. MIN is release by production department for
getting material for production. MIN is issue by production department to stores
department & it have signature of p
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Study and Analysis of Production and Control
CHAPER NO 8
8. DATA ANALYSIS
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
This table is design to understand availability of material at planned date. Here I stands for
indicator which having 2 colors, green and red. Green indicate the all components and
material are available before planned date and red means all material is not available. This
table will help to proper planning and some and point out the area where process need to
improve and necessary actions needs to be taken. Planned date is tentative date where
material and component of particular board need to be at stores which is well before actual
production date as some inspection and test need to be performed.
Electrical componants
20-Jul-14
10-Jul-14
30-Jun-14
20-Jun-14
10-Jun-14
31-May-14
21-May-14
1 2 3 4 5 6 7 8 9 10 11
Planned Actual
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Study and Analysis of Production and Control
Mechanical Componants
25-Jul-14
20-Jul-14
15-Jul-14
10-Jul-14
5-Jul-14
30-Jun-14
25-Jun-14
20-Jun-14
15-Jun-14
10-Jun-14
1 2 3 4 5 6 7 8 9 10 11
Planned Actual
B/O componants
30-Jul-14
20-Jul-14
10-Jul-14
30-Jun-14
20-Jun-14
10-Jun-14
31-May-14
1 2 3 4 5 6 7 8 9 10 11
Planned Actual
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Study and Analysis of Production and Control
8.2 INVENTORY
(Amount in Lakhs)
Finish
Raw material work in progress goods Total
2010-2011 459 561 1530 2550
2011-2012 521.6 749.8 1988.6 3260
2012-2013 649.4 725.8 2444.8 3820
Inventory
5000
3820
4000 3260
3000 2550 2444.8
1988.6
2000 1530
459 561 749.8
521.6 725.8
649.4
1000
0
2010-2011 2011-2012 2012-2013
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Study and Analysis of Production and Control
4000
2000
0
2010-2011 2011-2012 2012-2013
INTERPRETATION
Inventory carrying cost for the organization is increasing from past 3 years. Currently
company carrying 15% which was 14.5% in FY 2012 and 14% in 2011. Percentage of raw
material with respect to total inventory which was 18% in 2011, 16% in 2012 and 17% in
2013. Company needs to work on inventory management properly so that cost to company
could be minimize.
Carrying cost for 15 Days- 6059 Rs ( Usually Mechanical matrial bought in stores 15 days
prior to manufacturing and inventory carrying cost is 15%)
JIT Implementation:
As the location is of vendor is so it is possible to get material 4 days before the production
starts and it can get inspected within that period, company uneccesarily carrying this
meterial for longer period. This impelentation can help to company to save on inventory
cost which is around 4443 Rs.monthly.
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Study and Analysis of Production and Control
Scrap Amount
250000 212355
200000 165200 161220
150000 114345
107480
100000 70800
50000
0
Design WIP Scrap Design WIP Scrap Design WIP Scrap
Fault Fault Fault
2011 2012 2013
INTERPRETATION
Scrap arises mainly from design fault and WIP i.e work in progress fault. WIP fault
constitute more to the scrap amount. In year 2011 scrap amount was 236000 which rose to
268700 in 2012 and further to326700 in 2013. Design should be carefully done so that this
amount can be minimized. Inventory should be carefully handle while manufacturing to
avoid wear and tear to the components
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Study and Analysis of Production and Control
Q1. Do you think production planning and control is central to the success of any
manufacturing unit?
If yes how?
Options Yes No
Response 30 0
Response
No
0%
Yes
100%
Yes No
Interpretation
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Study and Analysis of Production and Control
All 100% respondents thinks that production planning and control is success of any
manufacturing unit. Most of respondent believe that Production planning and control helps
in optimum utilization of resources and maximum utilization of capacity. Proper
production planning and control helps in reduction of waste and increase of profitability.
Q2 Do you feel that Capacity planning contributes to the efficient use of facilities and
equipment’s?
If yes how?
Options Yes No
Response 26 4
Response
13%
87%
Yes No
Interpretation
Most of respondents i.e. 87% believe that capacity planning contributes to the efficient use
of facilities and equipment’s. Respondents believe that capacity planning helps in
accessing the resources that organization having and its efficient utilization. Capacity
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Study and Analysis of Production and Control
planning have a long term impact, it helps in selection of appropriate technology, type of
labour and epuipments.
Capacity planning helps in assessing existing capacity, forecasting future capacity needs.
It also helps in identifying alternatives way to modifying capacity and evaluating financial,
economical and technological capacity alternatives.
Options a b c d E
Response 22 15 8 5 27
Response
30
27
25
22
20
15
15
10 8
5
5
0
a b c d E
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Study and Analysis of Production and Control
Interpretation
Most of the respondents believe that waste reduction and increased profit is the main
objective of production planning, some of them also believe that optimum utilization of
capacity is another objective of production planning.
The other objective of production planning is inventory control, economy in production
time, and quality insurance.
Q4. Since, capacity can’t always be added or subtracted instantaneously; there will be
mismatch of load and capacity.(You can have multiple ticks)
What are its effects?
a) Lead time get affected
b) Increase in cost
c) Hurts the ability to satisfy customers
d) Other effects
Options a b C d
Response 3 25 30 3
Response
35
30
30
25
25
20
15
10
5 3 3
0
a b c d
Interpretation
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Study and Analysis of Production and Control
All respondents believe in the above statement. According to them mismatch in load and
capacity, leads to customer dissatisfaction and increase in cost. If the capacity is low and
demand is high, orders will not be completed on time. If load is less and capacity is more
than Options Yes No
Response 13 17
requirement it will lead to inefficient use of capacity, hence, cost of production will
increase. As lead time is calculated on the basis of available capacity it has no effect on
lead time.
Other effects can be increase in cost by increasing man power and plant maintenance, and
delay in delivery to customers.
Q5. Do you experienced any hung up and bottlenecks in implementing Production
Plans?
Response
Yes
43%
No
57%
Yes No
Interpretation
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Study and Analysis of Production and Control
Around 57% respondent feel that they have not experienced any hung up and bottlenecks
in implementing Production Plans.
Other respondents i.e.43%e experienced bottlenecks in the process and there are still areas
of improvement. Success of production planning is depends upon availability of material
at right
Options Revision of plan Other measures
Response 25 5
time, non-availability of material is main source of bottleneck. Lack of communication
between the different departments like planning dept., production dept. & purchase dept.
cause non availability of material. Respondents feel that missing documents is another
source for bottleneck. Missing documents like invoices, dft cause delay in further
processing which leads to delay in the production.
Q6. If results are not according to the plans, what control measures are taken?
a) Revision of Plan
b) Any other measures.
Please specify other measures (if any)
Interpretation
Majority of respondent i.e. 83% think that they will for revision of plans if result are not
according to the plan. They think if result differ from what it was expected then it is better
to revise the plan
Around 17% people think that there is no need of change of whole plan they want to
concentrate only those areas which leads to failure of the plan remaining plan can be used
as what was design earlier. They think MBE (management by exception) could be
implemented and focus only those problems which causes the result not according to the
plan.
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Study and Analysis of Production and Control
Q7. Do you think that some manufacturing activities should be outsource for better
efficiency in the production
(If yes specify the activities)
Options Yes No
Response 12 18
Response
Yes
40%
No
60%
Yes No
Interpretation
Majority of respondents i.e. 60% believe that there is no need of outsource the activities,
they think that the organization is efficient enough to carry out all the manufacturing
activities within the deadlines.
40% of respondents feel that some activities and components can be outsource. They feel
that origination should give more concentration on production of switchgear which is their
primary business. They think that activities like plating, fabrication can be outsource so
that company can concentrate on production of switchgear.
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Study and Analysis of Production and Control
Options Yes No
Response 9 21
Response
Yes
30%
No
70%
Yes No
Interpretation
Only 30% respondent feel that material management is efficiently and effectively done.
Majority of respondent i.e. 70% feel that there is still area of improvement in material
management.
Respondent suggest that proper tagging of material should be properly done. Sorting of
material should be done. Respondent suggest that it will better if board wise material is
stored. All documents like invoices, dft , and test certificate should be properly maintained.
Delicate material should be carefully maintain to avoid misplacement and further
problems. System process must be smooth like GRN, 541, 281 movement
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Study and Analysis of Production and Control
CHAPER NO 9
9. FINDINGS AND CONCLUSION
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
9.1FINDINGS
Following are the findings of this project about production planning and control activities
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Study and Analysis of Production and Control
9.2 CONCLUSION
After doing this project I am in position to conclude that it has been a very good
learning experience and now I will able to relate the theories with real world .it
has well defined and structured production planning system. PPC defines the
sequences and schedules of operations; hence production planning contributes
to the efficient use of facilities and equipments.
Proper PPC helps to resort to just- in- time systems and thereby reduce the
overall inventory. It enables to ensure that the right supplies are available at
the right time.
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Study and Analysis of Production and Control
CHAPER NO 10
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Study and Analysis of Production and Control
It was not possible to understand thoroughly all the aspect of Production Planning and
Control, however a moderate effort to understand a typical work flow of operations are
taken.
a) Project duration was only 2 months so it wasn’t possible to cover all areas in depth in
given period.
b) The limitation in collecting data due to the confidentiality policy of the company.
c) This study does not include full analysis of the production planning and control.
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Study and Analysis of Production and Control
CHAPER NO 11
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
RECOMMENDATIONS
The production planning and control of BIZLINK and Toubro Ltd. ESE-MV, highly
depends on the material availability. In case of shortage of material the overall plan get
disturbed. If such problem prevails the optimum results cannot be achieved. To avoid such
problem following measures can be taken:
Contract with the vendor regarding price can be done it will help as hedge against
increasing price
Materials must be purchased from multiple vendors,
Sufficient safety stock must be maintained,
Lead time and responsibility must be fixed at the part of vendors.
Employee training should be provide in various areas like SAP software, vendor
coordinator, communication skills which will helps employees to perform task
better
JIT implantation for materials can be done which can save lot of inventory carrying
cost for the company.
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Study and Analysis of Production and Control
CHAPER NO 12
12. BIBLIOGRAPHY
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
Books:
Website:
http://www.BIZLINKtoubro.com/lntcorporate/common/ui_templates/homepage_n
ews.aspx?res=P_EBGassessed on Monday 7thJuly 2014, 1:00 pm.
http://www.lntebg.com/lntebg/EBGHome.aspassessed on Wednesday 23rd July
2014, 10:30 am.
http://articles.economictimes.indiatimes.com/2014-01-
07/news/45955306_1_bhargava-switchgear-tamco assessed on Friday 25th July
2014, 2.35 pm.
http://economictimes.indiatimes.com/new-sections/leaders-interview/quality-
is-key-to-stable-power-supply/articleshow/44080578.cms assessed on
Monday28thJuly 2014, 3:00 pm.
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Study and Analysis of Production and Control
CHAPER NO 13
13. ABBREVATIONS
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Study and Analysis of Production and Control
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Study and Analysis of Production and Control
ANNEXURE
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Study and Analysis of Production and Control
QUESTIONNAIRE
Q1. Do you think production planning and control is central to the success of any
manufacturing unit?
c) Yes
d) No
If yes how?
Q2 Do you feel that Capacity planning contributes to the efficient use of facilities and
equipment’s?
a) Yes
b) No
If yes how?
Q4. Since, capacity can’t always be added or subtracted instantaneously; there will be
mismatch of load and capacity.
What are its effects?
a) Lead time get affected
b) Increase in cost
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Study and Analysis of Production and Control
a) Yes
b) No
If yes please specify
Q6. If results are not according to the plans, what control measures are taken?
a) Revision of Plan
b) Any other measures.
Please specify other measures (if any)
Q7. Do you think that some manufacturing activities should be outsource for better
efficiency in the production
a) Yes
b) No
(If yes specify the activities)
Q9 Do you feel that dedicated planning software should be implemented for increase
efficiency?
a) Yes
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Study and Analysis of Production and Control
b) No
Q11 Do you feel that there is need of “employee training” to successful implementation
of production planning
a) Yes
b) No
Please give Suggestion for area of training.
Q13. Do you think that there is proper communication between Planning dept., Purchase
dept. and Production dept.?
a) Yes
b) No
Suggestion to improve communication
77