Production and Operations Management at IFFCO Kandla

Presentation onPresentation onPRODUCTION & PRODUCTION &

OPERATIONS OPERATIONS MANAGEMENTMANAGEMENT

Presented By: Group A1

• The fertilizer in India consists of three major players: The Government owned Public Sector undertakings, Cooperative Societies like IFFCO, KRIBHCO and units from Private sector.

• The fertilizer industry has organized itself through Fertilizer Association India (FAI) to coordinate with the Government of India to achieve the macro-economic objectives related to agricultural sector and to provide other services.

IFFCO is the largest producer of fertilisers in the country.A total of 24.49 lakh MT imported urea and 14.71 lakh MT imported DAP were handled by marketing division from various ports directly.Fertilisers marketed through 39877 cooperative societies and 158 farmers service centers.Only fertiliser institution in the country to produce 85.83 lakh MT of fertilisers and 125.88 lakh MT of sales during 2010-11. This is highest sales in India as well as the whole world by a single fertiliser major.

Five units of IFFCO they are:-

Kalol Kandla Phulpur Aonla Paradeep

Mission of IFFCO is to establish Indian Farmers to prosper through supply of reliable, timely, high quality agricultural inputs and services in an environmentally sustainable manner and undertake other cavities to improve their welfare.

Attaining an annual turnover of Rs.15000 crore by 2010 which increased to Rs.21195 crore by 2011.Backward integration to meet feedstock requirement such as Phosphoric Acid etc.Generation of powerExploration of HydrocarbonsValue addition to Agro-products and marketingIT enabled services and financial services

The raw materials used in IFFCO are:-

AmmoniaPhosphoric acidUreaPotassium chloride

To promote the economic interest of its members by conducting its affairs in professional, democratic and autonomous manner through self-help and mutual co-operation for undertaking.

To maintain transport units of its own or in collaboration with any other organization in India or abroad for movement of goods by land and sea.

To provide technical consultancy and other services to members societies and other agencies.

To subscribe shares of co-operative and other institution.

To act as an warehousing agency under the warehousing act and construct its own godowns or higher godowns for the storage of fertilizer and other goods.

CHAIRMAN

MANAGING DIRECTOR

PRODUCTION MANAGER

MARKETING MANAGERH.R MANAGERFINANCE

MANAGER

SUPERVISORFACTORY

MANAGER

ACCOUNTANT

CLERKWORKER

BOARD OF DIRECTOR

SUPERVISOR

WORKER

There were 6 streams in IFFCO kandla plant they are named as A,B,C,D,E,F.They produce three product in IFFCO Kandla plant they are:-

NPK1 NPK2 DAP These products should have their standard ratio like:

NPK1 have (10:26:26)NPK2 have (12:32:16)DAP have (18:46:00)

IFFCO Kandla have the capacity of 9.10 lakh MT P2O5 per annum equivalent to 24.20 lakh MT of bulk fertilizer.

They import there main raw material urea from out side countries because of some legal obligations.

FUEL OIL:- There are total of three vertical cylindrical fuel oil storage tanks with unloading and pumping facilities. The 250kl storage tank is located at kandla phase-II plant. Two day tanks are provided at the boilers for storage of fuel oil used for steam generation.

PLANT AND INSTRUMENT AIR:- There are total of four air compressors catering to both plant air and instrument air requirements.

STEAM GENERATION PLANT:- Steam is generated at a pressure of 10.5 kg/sq.cm gauge and is in saturated condition. Three boilers are available of type three pass, smoke tube package boilers.

POWER:- Electricity is purchased from Gujarat electricity board(GEB) through a double circuit 66 KV line from GEB Anjar. In addition to this facility, they have one emergency power DG set of 800 KVA capacity.

WATER:- Water is supplied by Gujarat water supply and sewerage board(GWSSB) THROUGH A 12” MS pipeline and is stored in three tanks out of which two are MS tanks of 5000 KL capacity. Another 1 tank is kept spare for fire fighting purposes.

PRODUCT STORAGE AND BAGGING:- Two covered storage silos for product storage are available, one for kandla phase-I plant and the other for kandla phase-II plant. Each of these silos has a storage capacity of 30000 MT.

LIQUID CARGO JETTY:-IFFCO hasconstructed its capative liquid cargo jetty at kandla port forberthing of ships carrying the imported raw materialsphosphoric acid and ammonia. It has a capacity of unloadingtwo million metric tonnes per annum of liquid cargo.

CONCENTRATED SULPHURIC ACID UNLOADING, STORAGE & HANDLING FACILITIES:-

The tank has been constructed along with diking facility. An 8 inch unloading line facility from jetty to the main storage tank has been provided.

Pornutraliser(PN)

Phosphorus Acid

Granulator

Belt

Hot N Dryer

Screening

Cooling

Bagging

WagonDistribution

FumeConveyor

Ammonia

Production Process

Slurry

A quantity of items that are processed together. In the process phosphoric acid, urea, potash and ammonia are processed together.

A method in which production of the item begins in advance of customers needs. The fertilizers are made ready before they reach the farmers and the needs and wants of the farmers are fulfilled.

The operations are repeated daily in the plant. The process are done in a standardized form. The labours process the fertilisers, load them in the wagon and then they are sent.

In IFFCO Reward System is planned and followed. Employees are given rewards on several activities organized in the organization. We observed some of the Rewards given to the employeeswhen we reached IFFCO on 4th march which was National Safety Day.

The ISO 14000:2004 standards require documentation of a firm’s environmental program. According to the International Organization for Standardization, “ the ISO 14000:2004 family addresses environmental management by specifying what the firm does to minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance.”

Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment and disposal of hazardous wastes.To reduce and control pollution IFFCO releases only 1% unwanted gas.In IFFCO they even do not waste water. The waste water is reused in some other uses in the plant premises only so that it don’t harm environment.

Internal and external customers

Processes and operations

Information on performance

Inputs•Workers•Managers•Equipment•Facilities•Materials•Land•Energy

Outputs•Goods

1

5

4

3

2

Front office

BACK OFFICE

Hybrid office

Process characteristics High interaction Some interaction Low interaction

Flexible flows with individualized processes

Flexible flows with some dominant paths

Line flows, routine work performed

Less customer contact and customizationLe

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A back office process has low customer contact and the work is standardized and routine. In IFFCO plant the process of the fertilizers are done repeatedly, they have low customer contact and are passed on to their customers who are farmers after the final process.

job process

small batch process

large batch process

Line process

Continuous flow process

Low volume products Multiple products

Few major products

High volume products

Customized process

Disconnected line flows

Connected line

Continuous flows

Less customization and higher volumeLe

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Process characteristics

Ammonia, urea, phosphoric acid, potassium chloride are the primary material that continues its flow till the end and the same process is repeated in the plant.

Automation is a system, process or piece of equipment that is self-acting and self-regulating.In operations managers favor fixed automation when demand volumes are high, product designs are stable and product life cycles are long.Over here labours are there to look after the process while the whole process is carried on by the machine itself.

A systematic management approach that focuses on actively managing those constraints that impede a firm’s progress toward its goal.

Plant makes use of its resource effectively and tries to attain profit in all prospects.

As their raw material come from ship so they have to keep raw material inventory but for final product they do not keep any inventory they make product and send to HO daily directly from their bagging plant. So by this we can say that they are using centralized

placement inventory because they made and send the product within there plant warehouse in wagons.

In IFFCO kandla their whole supply chain is handed over by HEAD OFFICE here in IFFCO kandla they just take the raw material from ho process it and then send the final product to HO. So here they do not have any supplier or customer relationship system.

Location is helpful to reduce the transaction cost.

There are some dominant factor in manufacturing they are as follows:-

Favorable labour climate Quality of life Proximity to suppliers and resources Other factors

LOAD DISTANCE METHOD:- Here we can say that IFFCO kandla used load distance method because this model is used to evaluate location based on proximity factors the distance is less in shipment between plant to reduce the load distance score.OPERATIONS PLANNING &SCHEDULING:-

Part time workersSubcontractorsOn role workers {shifts}

They do not use any PLANNING STRATEGY because of safety there workers do there work in shifts and go home and if any one wants to do overtime then they have to take prior permission from HR department.

SCHEDULING EMPLOYEES:- They give them shifts to work so they know that at what time they have to come and do their work.

ROTATING SCHEDULES:- They use this concept so that they change their shifts.

RESOURCE PLANNING:- In IFFCO KANDLA they do not do any resource planning because here they only produce and send their product to ho in standard quantity.