TRIBHUVAN UNIVERSITY INSTITUTE OF ENGINEERING

PULCHOWK CAMPUSLALITPUR

DEPARTMENT OF MECHANICAL ENGINEERING

PRESENTED BY:ANIL MAHARJAN (060-BME-603)BABURAM KHAREL (060-BME-607)DAYARAM NHUCHHEN (060-BME-611)OBLIQUE SHRESTHA (060-BME-619)

INTRODUCTION

INDUSTRY SELECTED FOR THE STUDY OF PRODUCTION AND MANAGEMENT SYSTEM

“SITARAM GHOKUL MILK LTD.”Dudh Pokhari, Kritipur, Nepal

- ESTABLISHED IN 2053B.S.

- TYPE OF INDUSTRY = PRIVATE.

- AREA APPROXIMATELY 9 ROPANIES.

- ALTOGETHER 110 STAFF. (80% LOCAL PEOPLE)

- OPERATION IS CARRIED OUT BY THE UNION.

- AVERAGE PRODUCTION OF MILK PER DAY = 30000LT.

- MILK COLLECTED FROM FIVE DISTRICTS

(CHITWAN, NAWALPARASI, KAVRE, RUPONDEHI, AND BUTWAL)

THROUGH FARMERS, VENDERS, AND CO-OPERATIVES.

OBJECTIVE

TO ENLIGHTEN THEORITICAL KNOWLEDGE PRACTICALLY.

TO UNDERSTAND IPOO MODEL OF THE SELECTED INDUSTRY

(i.e. SITARAM GHOKUL MILK LTD.)

TO UNDERSTAND MAJOR ELEMENTS OF INDUSTRIAL

ENGINEERING MANAGEMENT LIKE PLANT LOCATION, LAYOUT,

MANAGEMETN LEVEL AND DECISION, INVENTORY, RECENT

PRODUCTION PROCESS AND AVAILABLE PLANT OPERATION

etc.

TO STUDY DAILY INDUSTRIAL ACTIVITIES CARRIED IN

INDUSTRY.

INDUSTRIAL SNAP SHOT

1WORKSHOP 16

3BUILDING 15

3VEHICLE14

5PACKING MACHINE 13

1BUTTER STORING FREEZE12

1GHEE PRODUCTION PLANT11

1CHURN10

1BOILER9

1POWER SUPPLY8

19000LITRES CAPACITY

230000LITERS CAPACITY

STANDARIZED MILK STORAGE TANK 7

1HOMOGENIZATION MACHINE6

1CREAM SEPARATOR5

1PASTURIZATION MACHINE 4

3INITIAL STORAGE TANK (20000 LT. CAPACITY)

3

(14+1)CHILLING CENTRE( INCLUDING OUT OF THE FACTORY)

2

7INSULATED TANKER (9000LT CAPACITY)

1

QUANTITYPARTICULARSS.N.

STANDARDISED MILKSKIM MILKBUTTER

OUTPUTRaw MaterialRaw milkSkim Milk PowderButterClean waterTesting ChemicalsStaffManpowerMachineProcessing m/cTransportation vehiclesEnergyCapital

INPUT TRANSFORMATION PROCESS

PRODUCTION PROCESSPROCUREMENTCOLLECTIONSTANDARDISATONPASTEURISATIONPACKAGINGCOLD STORAGEDISPATCH

PRODUCTION MANAGEMENTPLANNINGMASTER SCHEDULINGMATERIAL REQUIREMENT PLANNING (MRP)

TESTINGCHEMICALORGANOLAPTICBACTERIOLOGY TEST ADULTERATION AND M.B.R TEST

OUTCOMEGUARANTEED MARKET FOR RAW MILKORGANISED MIK COLLECTION AND SUPPLYHYGIENIC AND PASTEURISED MILK FOR URBAN CONSUMERDEVELOPMENT OF DIRECT AND INDIRECT EMPLOYMENTSTRENGTHEN OF NATIONAL ECONOMYINCREASE QUALITY STANDARD DUE TO COMPETITIVENESS

SITE LOCATION

SITE LOCATION IS SELECTED, AS THEY OWNED THE LAND WHICH REDUCE INITIAL INVESTMENT.

APPROXIAMTELY 10Km FROM THE MARKET AREA.

GOOD ENVIRONMENT FOR PRODUCTION AS NO DISTURBANCE

IN SURROUNDING.

AREA APPROXIMATELY 9 ROPANIES.

ACCORDING TO BUSINESS FORM, PLANT LOCATION IS NOT

SUITABLE.

GENERAL MANAGER

PRODUCTION MANAGER

ADMIN.MANAGER

MARKETINGMANAGER

QUALITY CONTROLLAB

UTILITY AND MAINTANENCE

PROCESSSECTION

COLD STOREAND

PACKING

DISPATCH SECTION

PROCUREMENT

MANAGER

FINANCEMANAGER

ALLADMIN. STAFF

MARKETINGSTAFF

MARKETINGSTAFF

MARKETINGSTAFF

.

14 CHILLINGCONTROLLERS

ACCOUNT SECTION

STORESALSE MAN

SALSE MAN SALSE MAN

SALES ASSISTANT

SALES ASSISTANT

SALES ASSISTANT

BOARD OF DIRECTOR

MANAGING DIRECTOR

MANAGEMENT DECISION

lt had three management levels, executive level, strategic level and operational level.

weekly managerial meeting in the presence of the executive level staff for discussion and to present the progress report of the factory.

MARKET SEGMENT

VALLEY DIVIDED IN 4 PARTS.

24 DISTRIBUTER TO DISTRIBUTORS THE PRODUCT.

MARKETING ENHANCEMENT BY ADVERTISEMENT IN THE MEDIA.

MARKET STUDY (COMPARATIVE STUDY OF THE DAIRY PRODUCTS

AND MARKET DEMAND).

AUTHORITY OF HIRING AND FIRING OF THE STAFF.

CHANGE IN THE QUALITY OF PRODUCT (HIGHER FAT AND SNF

CONTAINT).

NEW PLANS BENEFIT FOR THE INDUSTRY CAN BE IMPLEMENTED.

MARKETING STRATEGY

INVENTORY SYSTEM

INVENTORY SYSTEM OF SITARAM GHOKUL MILK LTD.

INVENTORY CONTROL SYSTEM USED IS FIFO (First In First Out).

INVENTORY SYSTEM USED IN THE PAST IS BIN Card SYSTEM.

BIN CARD SYSTEM BECAME OUTDATED IN THE MORDEN TECHNOLOGY

WORLD, SO SPECIALLY MADE COMPUTER SOFTWEAR IS USED FOR THE

INVENTORY SYSTEM.

MATERIAL REQUIREMENTS PLANNING (MRP)

agreement with the distributor of the required material will last for a year.

brought in the factory as per schedule in the master schedule

Master Scheduling Planning for the requirement is carried out by the administrative head and is submitted to the executive level for the preparation of the master schedule.

POLICY AND FORECASTING

FORECASTING MEANS PREDICTION OF FUTURE IN PRESENT.

“Forecasting represent the statistical analysis of the past and current movement in the given time series so as to obtain clue about the future pattern of these movement.”

ANY BUSINESS FORM FORECAST FOR ITS TECHNICAL ADVANCEMENT, MARKET SITUATION IN RELATION TO THE BENEFIT OF INDUSTRY.

SITARAM GHOKUL MILK STUDY DEMAND OF THE PUBLIC.

TECHNICAL REQUIREMENTS

PAST RECORDS ARE REFERED DURING FORECASTING.

PALNNING AND POLICY MAKING IS CARRIED OUT ON THE BASIS OF FORECASTING MADE.

ALL POLICIES ARE MADE BY EXECUTIVE LEVEL IN PRESENCE OF MANAGERIAL LEVEL STAFF.

NEW POLICIES ARE INTRODUCED TIME TO TIME BY MANAGEMENT LEVEL OR BY THE MANAGERIAL LEVEL IN FAVOR OF INDUSTRIAL BENEFIT.

5. PRODUCTION PROCESS

PROCUREMENT: The average collection of the SITARAM

GOKUL MILK LTD is 30000 liters per day. this milk required is collected from the farmers, venders and cooperatives of 5 districts.

This factory had installed 14 chilling centre of different capacities(2000ltr-5000ltr).

This form owned 7 insulating tankers each of 9000ltrs in capacity which bring milk from different chilling centre to factory for standardization.

PROCEDURE FOR MAKING STANDARIZED MILK:

In the production process the collected milk is transformed in to the standardized milk.

The constituent of the collected milk by percentage may vary from 4-5% fat and 8-8.5%snf(solid not Fat ).

By employing various processes the constituent are maintained at 3% fat and 8%snf which is in the standardized form.

5. PRODUCTION PROCESS

PROCUREMENT: The average collection of the SITARAM

GOKUL MILK LTD is 30000 liters per day. this milk required is collected from the farmers, venders and cooperatives of 5 districts.

This factory had installed 14 chilling centre of different capacities(2000ltr-5000ltr).

This form owned 7 insulating tankers each of 9000ltrs in capacity which bring milk from different chilling centre to factory for standardization.

PROCEDURE FOR MAKING STANDARIZED MILK:

In the production process the collected milk is transformed in to the standardized milk.

The constituent of the collected milk by percentage may vary from 4-5% fat and 8-8.5%SNF(Solid Not Fat).

By employing various processes the constituent are maintained at 3% fat and 8%snf which is in the standardized form.

PASTURISATION: It is the process of killing of pathogenic micro-

organism of milk by providing thermal shock. Firstly the milk is heated at 75-80 degree

centigrade and hold for 15 sec then abruptly chilled at the temperature 2-4degree centigrade.

this causes the thermal shock as a result removal of the all the micro-organisms.

The temperature of the pasteurizer is controlled by the automatic controller. then the pasteurized

milk is passed through the cream separate.

CREAM SEPERATER:

If the input milk contains more fat than standardized milk then excess fat is removed in this chamber.

In this chamber the excess fat is transformed into cream and formed cream is transferred to the churning process where as the standardized milk is then further passed for pasteurization and to homogenization.

HOMOGENIZATION:

It is the process of making milk more uniform in consistency by by breaking down and blending the particles of fat.

Sitaram milk factory use powder snf and ghee as fat if the demand of the milk is very high.

In the case of powder snf immiscible mixture is formed, so to get the uniform mixture homogenization process is used.

In homogenization process the mixture is compressed at high pressure about 200kpa with piston.The milk produce by this process is good in quality as it thick and looks more bright.

STORING AND DISPATCHING:

In this way the formed standardized milk is stored in the storage tank.

This factory has the storage capacity of 69000litres (2 tanks of 30000ltr capacity and 1 tank of 9000ltr capacity).

The stored milk then passed out to the packing machine,where milk is packed in 500ml pouch, then they are stored in the cold store room for dispatch.

BUTTER AND GHEE FORMATION:

The cream kept in the churn is rotated at the constant rpm about 100 rpm,which gives butter as a product and butter milk as a by product.

The butter is further boiled at 120degree centigrade which forms ghee.

The formed ghee is filtered and cooled at a reasonable temperature then it is packed.

BUTTER AND GHEE FORMATION...

In the season of the ice-cream i.e. in summer ice-cream companies like Krishna dairy and other dairies order for cream. But actually they are not doing so, just taking as a side income.

Hence the SITARAM GHOKUL MILK LTD. Is producing three products milk, butter, and ghee which are using customers daily and butter milk as a by product.

QUALITY POLICY:

The term quality means degree of excellence ,degree of goodness, fitness for use etc.

It is a process that combines with manufacturing process to ensure that a manufacturing process produces quality -perfect product .

For the check of quality of the product sampling method is used.

In the same procedure the sitaram gokul milk is doing best for quality management from operation level to the executive level.

The main objective of this company is oriented towards customers but not only for earning money.

They are in process for registering company in ISO certification.

QUALITY POLICY…….

For the quality enhancement and to make a room in a market sitaram gokul milk ltd. Always make research on the available market milk.

This company also use the statistical quality control if the sampling method is ineffective for quality control.

Thus for this company quality control is made to compete in the market and to fulfill public demand which ultimately lead to the companies benefit.

POLITICAL AND ENVIRONMENTAL IMPACT IN THE PRODUCTION PROCESS:

Like other government companies it is also affected by the political and environmental effect which affects on the production process.

Here , the whole process is carried out by the union, so it is obvious that the production process is definitely affected by the politics. in some times there is a dispute between the union and administrative it faces the problems of strikes.

Due to the greater pollution from this company it placed in the corners of Katmandu where only small village is oriented, thus there is no any bad impact from the community.

Beside that there is a mutual cooperation between the executive level and operation level. this shows enthusiasm between in the creation and inspiration for them.

EXISTANCE AND COMPETITION

THIS MODERN WORLD, EXISTENCE IS ONLY POSSIBLE BY MEANS OF COMPETITION i.e. COMPETITION THRUOUGH QUALITY.

BE RELATING TO DARWIN'S THEORY, “STRUGGLE FOR EXISTENCE”.

CONTINUOUSLY FULFILLING MARKET DEMAND SINCE LAST 10

YEARS.

AHEAD OF DAIRY PRODUCTION INDUSTRIES LIKE TODAY, ANMOL

AND OTHERS.

COMPETING WITH DAIRY PROCUCTION LIKE DDC, TODAY, ANMOL

AND OTHERS.

Milk, Butter, GheeMilk, Butter, GheeMilk, Butter, Ghee, and other hygienic drink

PRODUCTS

Entire Kathmandu ValleyEntire Kathmandu ValleyLessMARKET COVERAGE

Almost uniformAlmost uniformFluctuateQUALITY(MARKET BASE)

Average 30000Liters per day

Average 1,20,000Liters per day

Approximately 20,000Liters per day

PRODUCTION CAPACITY

Comparative lower than Today and DDC

MediumBest quality of allPRODUCTION PLANT

Not GoodGoodGoodPLANT LOCATION

SITARAMDDCTODAY

DAIRY MILK PRODUCTION INDUSTRIESSPECIFICATION

TABLE SHOWING COMPARISONS BETWEEN TODAY, DDC, AND SITARAM

PROBLEM FACED

ENVIRONMENTAL POLLUTION i.e. LAND POLLUTION

POLITICAL PROBLEM i.e. UNION AND NATION POLITICAL

LOCAL PROBLEM

TO GET SUCCESS EACH AND EVERY BUSINESS FORM TO LABOUR HARD AND

IN DUE TIME THEY HAD TO FACE VARIOUS PROBLEMS EITHER INTERNAL OR

EXTERNAL

SOME PROBLEMS THAT SITARAM MILK INDUSTRU IS FACING THESE

DAYS ARE AS FOLLOWS

RECOMMENDATION INDUSTRY LOCATION SHOULD BE CHANGED AND SHOULD BE INSTALLED IN

MARKET AREA.

INDUSTRY SHOULD GO FOR THE AUTOMATIN TECHNOLOGY.

POLLUTION CONTROLL MAJOR SHOULD BE ADAPT FOR THE

ENVIRONMENTAL CONTROL.

BESIDE THE RECENT PRODUCTION IT SHOULD PRODUCE MORE RELATED

PRODUCTS THAT CAN GAIN NOT ONLY COUNTRY MARKET ALSO CAN MAKE

ROOM IN THE INTERNATIONAL MARKET.

ONCE USED WATER SHOUL BE MADE REUSABLE WHICH ENHANCE AND

STANDARIZE THE INDUSTRY.

SHOULD GET THE ISO CERTIFICATE, AND PROVIDE QUALITY SERVICE TO

THE PEOPLE.

“PRODUCT QUALITY IS IN THE PRODUCT, NOT IN THE WORDS”, BETTER

CONTROL IN QUALITY IS REQUIRED

CONCLUSION

EXISTING PLANT IS FEASEABLE.

EXISTING PRODUCTION 25000LT TO 71000LT (IN PEAK SEASON)

HIGH POTENTIAL OF PRODUCTION.

FLUCTUATION OF QUALITY LEADS MARKET IMBALANCE. UNIFORM QUALITY OF

THE STANDARDIZED MILK.

INDUSTRIAL MANAGING STAFF THINK ABOUT THE FULL MARKET COVERAGE, ON

THE OTHER HAND THEY ARE COMPETING WITH PRODUCTION OF LOW QUANTITY.

PARTIALLY SUPPLY OF MARKET DEMAND..

MAJOR PROBLEM FACING IN THESE DAYS IS NATIONAL POLITICAL PROBLEM.

THANK YOU