MBA II Shivaji University, Kolhapur Introduction of the Study and Methodology 1.1 Introduction India is mainly agricultural country. India is one of the largest producers of sugar. Agriculture is the main occupation of people in rural areas. Sugar industry is the second agro based industry in India next to the textile industry. India has now emerged as one of the largest producer of sugar cane and sugar in the world next to Brazil. There are 453 sugar mills in India. Co-operative sector has 252 mills and private sector has 134 mills. Public sector boasts of around 67 mills. The sugar industry is largely base on sugarcane production without a nominal percentage of sugar beet. However, in the world context, sugar beet contributes about 16 percent to the sugar production. Now, for sometime past the industry has been under crisis mostly due to divergent views of the government and the sugar mill owners on the actual volume of surplus lying un-cold with the mills. Production of refined white sugar obtained from sugarcane is the largest segment of sweetening industry in India. It is mainly grow for sugar and sugary production. It is an important source of income and employment for the farming community of the country. It also forms essential item for industries like sugar, chipboard, paper, barrages, confectionery, and uses in AGIMS, Sangli Page 1
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MBA II Shivaji University, Kolhapur
Introduction of the Study and Methodology
1.1 Introduction
India is mainly agricultural country. India is one of the largest producers of sugar.
Agriculture is the main occupation of people in rural areas. Sugar industry is the
second agro based industry in India next to the textile industry. India has now
emerged as one of the largest producer of sugar cane and sugar in the world next to
Brazil.
There are 453 sugar mills in India. Co-operative sector has 252 mills and private
sector has 134 mills. Public sector boasts of around 67 mills. The sugar industry is
largely base on sugarcane production without a nominal percentage of sugar beet.
However, in the world context, sugar beet contributes about 16 percent to the sugar
production. Now, for sometime past the industry has been under crisis mostly due to
divergent views of the government and the sugar mill owners on the actual volume of
surplus lying un-cold with the mills.
Production of refined white sugar obtained from sugarcane is the largest segment
of sweetening industry in India. It is mainly grow for sugar and sugary production. It
is an important source of income and employment for the farming community of the
country. It also forms essential item for industries like sugar, chipboard, paper,
barrages, confectionery, and uses in chemicals, plastics, paints, synthetics,
insecticides, and detergents. Sugarcane production in the country has increased over
time.
India with almost similar soil and climatic condition is obtaining about 53 per
cent higher cane yield than any country. As it is one of the cash crops of the country,
therefore, efforts should make to improve its productivity.
Because of these efforts, substantial improvement can take place in its yield.
Improved seed production, quality control, and distribution depend largely upon the
availability of skilled and competent local manpower, which presented in insufficient
in most developing countries. The other traditional sweeteners are comprised of gur,
shaker and desi.
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1.2 Objectives of the study
1) To study the working of “Rajarambapu Sahakari Sakhar karkhana” related to
production process of sugar.
2) To study the quality reports related to sugar.
3) To study the sugar recovery and sugar production from last six year.
4) To study the production of sugar for different year.
Importance of the study:
1) It enables to understand the meaning and significance of production process of
sugar.
2) To study helps in the knowing production process of sugar.
3) To know how they use new advanced technology.
4) To get valuable and visible knowledge through fieldwork.
1.3 Scope and Limitation of Study
1) Topical Scope :
Topical scope of the study is limited to “A study of production process of sugar with
special references to Rajarambapu Patil Sahakari Sakhar Karkhana Ltd. Sakharale
(Islampur).
2) Conceptual scope :
The conceptual scope related to concept of production process of sugar industries.
This will help to understand the production process of organization.
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Limitation of the study:
1) Time required to study the subject is limited.
2) It is not possible to get all the financial information of the enterprise.
3) The information and data, which is made available by personnel in the
organization is used for study.
1.4 Research Methodology
Research methodology is important and base of every research project the
concept research methodology refers to the systematic study of investigation.
Following are research methodology.
Data Collection
1) Primary Data:-
The primary data was obtained from the concerned department staff &
department head by way of general conversion & discussion oral.
2) Secondary Data:-
Secondary data means data that are already available i.e., they refer to data
which have already been collected and analyzed by someone else.
It includes the following
Reference Books
Annual Reports of the company
Financial statement of the company
Other records of the company
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MBA II Shivaji University, Kolhapur
Theoretical Background
2.1Concept of Production Management
Products are the goods and services produced and processes are the facilities
skills technologies used to produce them. Production processes are essential to
produce product and available processes limit what products can be produced.
Production function or operation function is the primary function of an industrial
enterprise it is known as conversion process or transformation process which
transforms some of the inputs (raw materials and components) into outputs which are
useful for consumer.
A process is sequence of activities that is intended to achieve some result
typically to create added value for the customers. A process converts inputs into
output in a production system. It involves the use of organizations resources to
provide something of value. No product can be provided without a process and or no
process can exist without a product or services.
Processes underlie all work activities and are found in all organizations and in
all functions of an organization. Deciding what processes to use is an essential issue
in the design of a production system. A process decision involves many different
choices in selecting human resources, equipment and machinery, and materials.
Process decisions are strategic and can affect an organization’s ability to complete in
the long run.
Definition:
1. “It is also known as conversion process or transformation which transforms some
of the inputs such as raw material and component into output which are useful for
the consumer”
2. “A process is a sequence of activities that is intended to achieve some result,
typically to create or added value for the customers.
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2.2 Types of Process:
Basically, processes can be categorized as follows:-
1. Conversion Process :
In the conversion process the raw material are converting in to the finished
products. For example converting iron ore into and then to steel. The conversion
process could be metallurgical or chemical or manufacturing or construction process.
2. Manufacturing Process :
Manufacturing process converts inputs like materials labour and capital in some
tangible outputs. Manufacturing processes are the primary processes and can be
grouped under three basic categories namely forming, machining and assembly. The
main objective of each process is to change the shape or physical characteristics of the
raw materials. Let’s us discuss in detail each of them:
i. Forming Processes :
These processes change the shape of the raw material in to the shape of the
work piece without removing or adding material. These includes casting, forging,
stamping, embossing, spinning
ii. Machining Process :
Machining processes involve basically metal removal, by turning, drilling,
grinding, shaping, boring, etc it also includes chip less machining processes such as
electro discharge machining (EDM) electrochemical machining (ECM) chemical
milling, laser drilling etc,
iii. Assembly Process :
Assembly process involves joining of parts or components to produce
assemblies having specific functions. Examples of assembly processes are welding,
brazing, soldering, riveting, fastening with bolts and nuts and joining using adhesives.
2.3 Objectives of Production Management :
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Production is an organized activity and each organized activity has its own
objectives. This helps to evaluate its performance against the set has its own
objectives. This helps to evaluate its performance against the set objectives of the
production management is stated as:-
1. Right quality :
The quality of the product is established based upon the customer’s needs are
translated into product specification by the design or engineering department. The
manufacturing department then translates this specification into measurable
objectives.
2. Right quantity :
The manufacturing organization should produce the product at the right
number. If the products are produced excess of demand the capital will be blocked up
in the form of inventory and if it is produced in quantity short of demand, these will
be shortages products. Thus the decision is to be taken regarding how much to
produce.
3. Manufacturing cost :
Manufacturing costs are established before the product is actually
manufactured. The manufacturing department has to manufacture the products at the
pre-established cost in any case: any variation between the actual cost and the
standard should be kept at minimum.
4. Manufacturing schedule :
Timeliness of delivery is one of the important parameter to judge the
effectiveness of production department; there are many reasons like non-availability
of materials at right time, absenteeism, machine break down etc. Which affect the
timely completion of the products? So the manufacturing department should organize
its activities in such a way that the products will be manufactured.
To achieve the above objectives, the manufacturing production department has
to make the optimum utilization of various inputs like men, material, machinery. So to
have as better utilization of resources, the production department has to achieve the
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other objective, which is lower in the hierarchy. These objectives are called
intermediate objectives.
2.4 Intermediate objectives:
Machinery and equipment’s
The objective concerned to these areas is that the machine and equipment
should be such that they should be able to produce the products as per the
specification and accuracy required the total cost of procurement and running cost
should be minimum. Once the machines are procured and put to productive use, and
then the next objective is to utilize these resources to the maximum extend.
Materials :
The material should be made available when required as per the specification
(shape, size, quality, etc) and at the most economical price. The production
department should aim at maximum utilization of the material with minimum wastage
and scrap.
Manpower :
Manpower is an important resources or input to production and the success of
production depends to a greater degree upon the type of manpower and organizations
have. Thus there should be a perfect matching between the workers and jobs and the
manufacturing department climate should be channelized into constructive outputs.
Supporting services :
This helps indirectly to achieve the other objectives and adequate provision of
the services helps to utilize other inputs effectively. The objectives should be set for
each of the services like water steam power, material handling etc.
2.5 Types of Production System:
The production system of an organization depends upon the types of products
that is offer to customer basically the production system can be classified as follows:
1. Make to stock production :
In this type of production system manufacture stocks to the finished goods for
easy supply. This system insures immediate delivery of quality goods at reasonable
price.
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Example:
Automobile, bearing, ready to wear garments nuts and bolts, television etc.
Normally customers do not like delay delivery so management has to maintain in
stocks. Management must have good knowledge or information regarding the demand
of product. Make to stock items are generally mass consume and passes through
multiple channel before the reaching end user. These distribution channels act as the
most important source of information regarding demand for the product and with the
help of information from distributing channels production planning is done. There is
no direct contact between the producer and the end user. So the distributing system
acts as eyes and ear of the organization to support demand forecasting and demand
analysis.
2. Make to order :-
In this type of production system production starts only after confirmation of
the orders and the products from the customer of product hence the delivery period is
long. In this type production system the final product is usually made from parts and
components. The process of order starts only after when the customer specified his
requirement of the products.
Example: - Tailor clothing’s special purpose machines very expensive products are
usually made by order.
3. Assemble to order production system :-
In this type of production system the manufactures stocks standard components
parts and assemble the selected parts and components only after the customer places
the order as the components are manufactured and stock the only time require is to
assemble before delivery to the customer.
2.6 Classification of Production System:
According to the volume of production quality and production standardization
production activities are classification are as follows:-
1. Job shop production :-
It is characterized by manufacturing of one or few quantity of products
designed and produced as per the specification of customer within the prefixed time
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and cost the distinguishing features of job shop is low volume and high variety of
products.
Example: - Space vehicle, aircraft department special purpose machines, large turbo
generators, material handling machines etc.
A job shop is typically made of general purpose machines arranged into
different departments. Each job demands and unique technological requirements,
demands processing on in a certain sequence. Job order production applies to situation
where products are to be manufactured again specific requirements of the customer.
Characteristics:-
1. High verity of product and low volume.
2. Use of general purpose machines and facilities.
3. Large inventor of materials, tools and parts.
2. Batch Production :-
It is defined as the form of manufacturing in which the job process through the
functional department in lots or batches and each lot may have different rating. Batch
production is producing limited number of products at regular interval and stocked
waiting sales. Batch production aims at satisfying the continuous customer demand
for an item. However, the plant is capable of production as per the demand rate batch
production plants includes foundries, plastic modeling units, press shops, chemical
and pharmaceutical units.
Characteristics:-
1. Shorter productions run.
2. Amount of supervision require is less.
3. Plants and machineries are flexible.
3. Continuous Process:-
This is used when a very highly standardized product is desired in high volumes.
These systems have almost no variety in output and hence there is no need for
equipment flexibility. A continuous process is the extreme end of high volume,
standardized production with rigid line flows. The process often is capital intensive
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and operate round the clock to maximize equipment utilization and to avoid expensive
shutdown ad clock to maximize equipment utilization and to avoid expensive shut
downs and shut ups.
Example:
Product made in continuous process systems includes petroleum products, steel,
sugar, flour, paper, cement, fertilizers etc.
4. Process Industry :
Process manufacturing is defined as the production that adds value by mixing,
separating, forming and performing chemical reactions. It may be carried out in either
batch or continuous process industries manufacture highly standardized non discrete
products in extremely large volume using a continuous process. Plant location, plant
capacity, long range plan for materials, manpower, energy and waste disposal are
important aspects in the process industries. In process production the process
generally follows a specific and fixed sequence of operations.
Example:
1. Plants and equipment’s with zero flexibility.
2. Material handling is fully automated.
3. Large investment.
4. Unit cost is low due to high volume.
5. Mass production :-
Manufactures of discrete parts of assemblies using a continuous process are
called “Mass production”. The machineries are arrange in a lines, material handling is
departments will be replaced by assembly lines, material handling is atomized which
reduces the cost. Automobile assembly like is a typical example of mass production,
products and process are standardize typically.
Characteristics:-
1. Large volume of products.
2. Lower in process inventory.
3. Extent of supervision required is less.
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Supplier Competitors Government
Subsystems of organizational system
a) Marketing:-
To create the demand for the company’s products or services and satisfy the
needs of the customers through company’s through various activities like market
research, marketing planning, sales administrating and advertising.
b) Finance:-
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Production
Production
Finance
Marketing Personnel
MBA II Shivaji University, Kolhapur
To plane allocate the finance to various activities of the organization and to meet
the long term and short term financial requirement of the enterprise.
c) Personnel:-
The objective of the personnel function is to match the jobs and skills of the
personnel and create harmonious climate where in each and every individual in the
organization contributes positively towards the achievement of organizational goal.
Introduction of the Company.
a) Name of the Unit
Name : Rajarambapu Patil Sahakari Sakhar Karkhana.
Address : A/P- Sakhrale, Tal- Walwa, Dist- Sangli
Pin Code : 415414
Registration No. : S.A.N/P.R.G (As Date 17-08-1963
Industrial License No. : 125/N-211/69L.C, Date 10-9-1969
Organization Type : Co-operative
Founder : Loknet Rajarambapu Patil
Guidance : Hon. Minister Jayantrao Patil
Chairman : P.R. Patil
Product : Sugar and Foreign Liquor
Major raw material: Sugar Cane
Time Schedule of Working
Shifts 1) 12pm to 8pm
2) 8pm to 4am
3) 4am to 12pm
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4) General Shift- 8am to 5pm
Marketing Territory: All India and Foreign
Made of Transport : By Truck and Railway
b) LOCATION
About 6 kms. From Peth Naka at National Highway No. 4
The above table and graph shows that molasses produced in the organization
in last five years. In the above graph it is clear that in the year of 2010-2011 the
organization has produced highest molasses as compare to other years. Which was
35139 tones. But in the year of 2008-2009 the organization has produced lowest
molasses due to less crushing of sugarcane.
Test report – 4.1 Year 2010-2011
Following are some test reports of the sugar factory regarding to sugar test parameter researcher has studied the test reports of some sample given below:
Report No.: GS-Feb-82-83
Date: 26-2-2011
Sample condition: Crystalline white sugar
Sample Description: ST-6544 S-30, M-30 season 2010-2011
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Sr. No.
Test parameter & unit
M-30Season 2010-2011
S-30 Season 2010-2011
Test methodadopted
1. Colour, IU 133 at PH 6.70
130 at PH 6.70
ICUMSA GS 2/3-10
2. Sulphardioxide mg/kg
17% 17% ICUMSA GS 2/A/7-33
3. Polarization% 99.90% 99.91% IS: 15279
4. Moisture% 0.0353% 0.0128% ICUMSA GS 2/A/3-15
MBA II Shivaji University, Kolhapur
Above table shows the test parameter and test method use to maintain the quality
of sugar in year 2010-2011. The test parameter of sugar are Colour IU (International
uniform),Sulphardioxide in percentage, Polarization%, Moisture%. There are
different international test are adoted by organization such as ICUMSA GS 2/3-10,
ICUMSA GS 2/A/7-33, IS: 15279, ICUMSA GS 2/A/3-15. Here M-30 is medium
sugar grade, and S-30 is small sugar grade. The colour, IU of sugar is tested by
method ICUMSA GS 2/3-10 (International Commission Uniform Method of Sugar
Analysis). In M-30 sugar colour, IU 133 at PH 6.70 and S-30 is 130 at PH 6.70. The
percentage of sulphardioxide for M-30 season 2010-2011 is 17% and S-30 is 17%.
The polarization means from the limitation of sugar into sugarcane. Polarization% M-
30 is 99.90% and S-30 is 99.91%. The test use is IS (Intermational Standard),
ICUMSA International Commission Uniform Method Analysis) and IU (International
Uniform). The percentage of moisture for M-30 is 0.0353% and S-30 is 0.0128%.
So, by using above test method the quality of sugar maintain.
Remark: The above test report conforms to S-30 & M-30 with respect to elements specified.
Test report – 4.2 Year 2013-2014
Following are some test reports of the sugar factory regarding to sugar test parameter researcher has studied the test reports of some sample given below:
Report No.: ST- 3585
Date: 8-8-2014
Sample condition: Crystalline white sugar
Sample Description: ST-6549, S-30, season 2013-2014
Above table shows the test parameter and test method use to maintain the quality of
sugar in year 2013-2014. The test parameter of sugar are Colour IU (International
uniform),Sulphardioxide in percentage, Polarization%, Moisture%. There are
different international test are adopted by organization such as ICUMSA GS 2/3-10,
ICUMSA GS 2/1/7/9-33, ICUSMA GS 2/3-1, ICUMSA GS 2/1/9-15. Here the one
type of grade adopted S-30 is small sugar grade. The colour, IU of sugar is tested by
method ICUMSA GS 2/3-10 (International Commission Uniform Method of Sugar
Analysis). In S-30 sugar colour, IU 110. The percentage of sulphardioxide for S-30
season 2013-2014 is 12.90%. Polarization% S-30 is 99.76%. The test use is IS
(Intermational Standard), ICUMSA International Commission Uniform Method
Analysis) and IU (International Uniform). The percentage of moisture S-30 is
0.027%.
So, by using above test method the quality of sugar maintain
Remark: The above test report conforms to S-30 with respect to elements specified.
Test Report -4.3 Year 2014-2015
Following are some test reports of the sugar factory regarding to sugar test parameter researcher has studied the test reports of some sample given below:
Report No.: ST-3633
Date: 26-12-2014
Sample condition: Crystalline white sugar
Sample Description: ST-6760, S-30, M-30 season 2014-2015