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    Praxis Business School

    Production & Operations Management-II

    Mid-Term Paper submitted to:-

    Prof. Rajiv Misra

    Prepared By:-

    Mallikarjuna Reddy Gooli (B09010)

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    5S

    What Is 5S?

    5S is methodology for organizing, cleaning, developing and sustaining aproductive work environment .The methodology originates from a Japanese

    housekeeping idea named because of the five Japanese words each beginning with the

    letter se or shi. They are Se-iri , Se-iton, Se-iso, Se-iketsu and Shi-tsuke.

    Definitions:Seiri(Sort)

    Distinguish the necessary things from the unnecessary and dispose of the unnecessary.

    This is the priority area.

    Seiton(Straighten)

    Arrange the necessary items in an orderly fashion so they are easily accessed and

    selected for use.Seiso(Scrub)

    Clean your workplace to keep floors and equipment tidySeiketsu(Standardize)

    Continually maintain the order, neatness and cleanliness.Shitsuke(Sustain)

    Do things spontaneously without being told. Train everyone in the workplace to follow

    good work habit so that it is a matter of personal pride and self respect.

    Problems Addressed: When applied to a factory, 5S can help to solve the following types of

    common problems:

    y Space crowded with parts and toolsy Unneeded items stacked between workersy Excess inventory on the floory Excess items and machines hinder process flowy Equipment is dirty and not serviced regularlyy Needed equipment, such as tools, is difficult to find.

    Process: The following flowchart explains the implementation process of5S.

    Sort

    Straighten

    Scrub

    Standardize

    u tain

    Conduct initial factory wide cleaning. Identify the

    necessary from the unnecessary, discard the unnecessary

    Put necessary items in order, mark undecided

    Clean works ace to eliminate causes of roblems of waste

    Create a manual and policies, draw up checklists

    5S becomes a way of life and everybodys business

    R

    E

    P

    A

    T

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    Keys to successful implementation:

    y Get everybody to participate.y Believe in the workers good nature.y Let organizers understand their role.y Make a plan with schedules and targets.y Advances step by step steadily.y Reach agreement with each other.

    Challenges and Pitfalls:

    Everyone in the organization must be fully committed to implementing the 5S process.

    Workers and management at all levels must take responsibility to keep their work area clean and

    orderly if5S is to be achieved.

    The Poka-Yoke SystemPoka-yoke (poh-kah yoh-keh) was coined in Japan during the 1960s by Shigeo Shingo who

    was one of the industrial engineers at Toyota. Shigeo Shingo is also credited with creating and

    formalizing Zero Quality Control (poka-yoke techniques to correct possible defects + source

    inspection to prevent defects equals zero quality control).

    Definition:

    The term poka-yoke means mistake-proofing or more literally avoiding (yokeru) inadvertent

    errors (poka). Ideally, poka-yokes ensure that proper conditions exist before actually executing a

    process step, preventing defects from occurring in the first place. Where this is not possible, poka-

    yokes perform a detective function, eliminating defects in the process as early as possible.

    To err is human, but still errors can be limited by applying the intelligence which the human

    being possesses. The following are the reasons for doing such errors.

    Causes Effects

    1.Distraction Defects(Quality)

    2.Confusion Insufficient number(Quantity)

    3.Lack of practice Accidents(Safety)

    4.Uncertainity Work delay

    Classifications by Dr. Shigeo Shingo:

    Judgment inspectiony Inspection in quality

    Informative inspectiony Uses data gained from inspection to control the process and prevent defects.

    Examples: Traditional SPC and repeated checks and self checks in ZQC

    Source inspectiony Before the fact at source, before reaching customer or Forcing function

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    Poka-Yoke devices:

    1. Aprevention device engineers the process so that it is impossible to make a mistake at all.

    Ex: A 3.5 inch computer diskette

    2. Adetection device signals the user when a mistake has been made, so that the user can quickly

    correct the problem

    Ex: Small dish for push buttons

    Push buttons:

    In the old method, a worker began by taking two springs out of a large parts box and then

    assembled a switch.

    In the new approach, a small dish is placed in front of the parts box and the worker's first task

    is to take two springs out of the box and place them on the dish. Then the worker assembles the

    switch. If any spring remains on the dish, then the worker knows that he or she has forgotten to insert

    it.

    Example:

    Carbon Credit and effects on Operations

    Environmental management:

    Environmental management is not merely managing the environment but its the management

    of human interaction with; and impact upon the environment in order to conserve the environment for

    mankinds sake. Managing environment is the biggest issue these days which is being faced by

    everyone everywhere across the globe. Initially, the Environmental Law was perceived as one of the

    most important tools of environmental management. However, Protection of environment from

    degradation has now not just remained a legal issue but a management issue as well.

    Market Based Instruments (MBI) for Environmental Benefits:Market Based Instruments refer to the environmental policies which encourage change in

    technology, behaviour or products through financial incentives like subsidies, taxes, price

    differentiation or market creation.

    What does Carbon Credit mean?

    A permit that allows the holder to emit one ton of carbon dioxide; Credits are awarded to countries or

    groups that have reduced their green house gases (GHG) below their emission quota.

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    Its goal is to stop the increase of carbon dioxide emissions. The Kyoto Protocolpresents

    nations with the challenge of reducing greenhouse gases and storing more carbon. A nation that finds

    it hard to meet its target of reducing GHG could pay another nation to reduce emissions by an

    appropriate quantity. The carbon credit system was ratified in conjunction with the Kyoto Protocol.

    For example, if an environmentalist group plants enough trees to reduce emissions by one

    ton, the group will be awarded a credit. If a steel producer has an emissions quota of 10 tons, but isexpecting to produce 11 tons, it could purchase this carbon credit from the environmental group.

    The carbon credit system looks to reduce emissions by having countries honour their emission quotas

    and offer incentives for being below them.

    Simply put, one carbon credit is equivalent to one tonne of carbon dioxide or its equivalent

    greenhouse gas (GHG). Carbon credits are Entitlement Certificates issued by the United Nations

    Framework Convention on Climate Change (UNFCCC) to the implementers of the approved Clean

    Development Mechanism (CDM) projects.

    Effects on Operations:

    Induces pressure on the organisations to adopt/invent efficient operations techniques in order

    not to cross the carbon limits. India is still not a signatory to the Kyoto Protocol, which in a way, is aroad-block for effectively carrying out environmental management by the industries. Currentlycompanies like Jindal Stainless, EssarSteel, Hyderabad Chemicals, Paschim Hydro Energy P. Ltd,

    The Andhra Pradesh Paper Mills Ltd, have been making use of market based instruments like CarbonCredits in their businesses.

    Organisations would also encourage use of reusable lunch bags / cups etc. in their cafeteria /

    lunch rooms which helps in avoiding use of plastic / paper, use of hand towels in toilets and lunch

    rooms instead of paper towels and electric dryers.Supporting the commercial development of new technologies to reduce environmental impact

    may be a suitable strategy for companies involved in natural resource intensive production activities,

    such as brewers, electricity providers and mining companies

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    Cement Manufacturing ProcessIntroduction:

    Cement is an essential material for today's society because concrete is made from cement,

    which is an inevitable element for housing, commercial and infrastructure development. Measured ona kilogram per capita basis, concrete is 2nd most widely consumed material in the world, second only

    to water. Cement manufacturing process will have -Local impacts (landscape disturbance, dustemission) and Global impacts (CO2, SOx andNOx emissions).

    Because of these impacts, sustainable development has recently become a major strategic

    issue for cement manufacturers around the world. Cement industry is giving very specific and seriousattention for managing CO2 emission.

    Types of cement:There are many types of cement in the market to suit every need. Some of them which are

    included in the revised IS : 456-2000 are as follows:

    Ordinary Portland Cement 33, 43, 53 grade (OPC), 53-S (Sleeper Cement)

    Portland Pozzolana Cement (PPC), both Fly Ash and Calcined Clay based Rapid Hardening Portland Cement

    Portland Slag Cement (PSC)

    Sulphate Resisting Portland Cement (SRC) Low Heat Portland Cement

    Hydrophobic Cement

    Even though only Ordinary Portland Cement is graded according to strength, the other cementstoo have to gain a particular strength. 33, 43 and 53 grade in OPC indicates the compressive strength

    of cement after 28 days when tested as per IS: 4031-1988, eg, 33 Grade means that 28 days of

    compressive strength is not less than 33N/mm2 (MPa) . Similarly for 43 grade and 53 grade the 28days compressive strength should not be less than 43 and 53 MPa respectively. 43 and 53 grade are

    also being introduced in PPC and PSC shortly by the Bureau of Indian Standards (BIS)

    Manufacturing process:

    Process Flow Diagram

    Raw Materials

    The main raw materials used in the cement manufacturing process are limestone, sand, shale, clay,

    and iron ore. The main material, limestone, is usually mined on site while the other minor materialsmay be mined either on site or in nearby quarries. Another source of raw materials is industrial by-

    products. The use of by-product materials to replace natural raw materials is a key element in

    achieving sustainable development.

    Raw Material Preparation

    Mining of limestone requires the use of drilling and blasting techniques. The blasting techniques use

    the latest technology to insure vibration, dust, and noise emissions are kept at a minimum. Blastingproduces materials in a wide range of sizes from approximately 1.5 meters in diameter to small

    particles less than a few millimetres in diameter. Material is loaded at the blasting face into trucks for

    transportation to the crushing plant. Through a series of crushers and screens, the limestone is reducedto a size less than 100 mm and stored until required.

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    Depending on size, the minor materials (sand, shale, clay, and iron ore) may or may not be crushed

    before being stored in separate areas until required.

    Raw Grinding

    In the wet process, each raw material is proportioned to meet a desired chemical composition and fed

    to a rotating ball mill with water. The raw materials are ground to a size where the majority of thematerials are less than 75 microns. Materials exiting the mill are called "slurry" and have flowability

    characteristics. This slurry is pumped to blending tanks and homogenized to insure the chemical

    composition of the slurry is correct. Following the homogenization process, the slurry is stored in

    tanks until required.

    In the dry process, each raw material is proportioned to meet a desired chemical composition and fed

    to either a rotating ball mill or vertical roller mill. The raw materials are dried with waste process

    gases and ground to a size where the majority of the materials are less than 75 microns. The drymaterials exiting either type of mill are called "kiln feed". The kiln feed is pneumatically blended toinsure the chemical composition of the kiln feed is well homogenized and then stored in silos until

    required.

    Pre-processing

    Whether the process is wet or dry, the same chemical reactions take place. Basic chemical reactions

    are: evaporating all moisture, calcining the limestone to produce free calcium oxide, and reacting withthe calcium oxide with the minor materials (sand, shale, clay, and iron). This results in a final black,

    nodular product known as "clinker" which has the desired hydraulic properties.

    In the wet process, the slurry is fed to a rotary kiln, which can be from 3.0 m to 5.0 m in diameter and

    from 120.0 m to 165.0 m in length. The rotary kiln is made of steel and lined with special refractorymaterials to protect it from the high process temperatures. Process temperatures can reach as high as

    1450oC during the clinker making process.

    In the dry process, kiln feed is fed to a pre-heater tower, which can be as high as 150.0 meters.Material from the pre-heater tower is discharged to a rotary kiln with can have the same diameter as a

    wet process kiln but the length is much shorter at approximately 45.0 m. The pre-heater tower androtary kiln are made of steel and lined with special refractory materials to protect it from the high

    process temperatures.

    Regardless of the process, the rotary kiln is fired with an intense flame, produced by burning coal,

    coke, oil, gas or waste fuels. Pre-heater towers can be equipped with firing as well.

    The rotary kiln discharges the red-hot clinker under the intense flame into a clinker cooler. The

    clinker cooler recovers heat from the clinker and returns the heat to the pyroprocessing system thusreducing fuel consumption and improving energy efficiency. Clinker leaving the clinker cooler is at a

    temperature conducive to being handled on standard conveying equipment.

    Finish Grinding and Distribution

    The black, nodular clinker is stored on site in silos or clinker domes until needed for cement

    production. Clinker, gypsum, and other process additions are ground together in ball mills to form thefinal cement products. Fineness of the final products, amount of gypsum added, and the amount of

    process additions added are all varied to develop a desired performance in each of the final cement

    products.

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    Each cement product is stored in an individual bulk silo until needed by the customer. Bulk cement

    can be distributed in bulk by truck, rail, or water depending on the customer's needs. Cement can also

    be packaged with or without colour addition and distributed by truck or rail.

    Raw material

    Crusher/Stacker & Reclaimer

    SixStage Pre heater

    90% calsination over

    Raw Material Roller Press

    Lime stone 90-96%

    Hematite 2-5%

    Bauxite 1-3%

    Grinding Mill

    Rotary Kiln

    (1200-1450

    C)Clinker -120 C

    Clinker

    stora e

    Roller

    Press

    Cement

    Mill

    Packaging

    Unit

    Storage silo

    Dispatch

    Clinker coolin

    Add Gypsum

    Grinding of clinker

    Bulk/paper/HDPE bagsRoad/Rail

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    Productivity:

    y Identify the appropriate bottleneck and try to reduce idle time of bottlenecky Make sure that the idle time of each machines should as minimum as possible because the

    cost of operating machines very expensive

    y Adopt to the latest technology to improve efficiencyy Raw material procurement in advancey Have a back up facility for electricityy Employee need to very well trained with usage of machines

    Quality:

    y Open the bag and take a good look at cement, there should be no lumpsy Try to minimize release of dust particles into atmosphere by using latest technology processy Make sure that the surroundings should be moist free as the quality of cement would be

    effected because of moisture

    yUse appropriate technologies to inspect the quality as the production process is Line

    y Focus more on air tight packaging as cements strength gets diluted when exposed to moisturey Purchase raw material which is free from impurities which envisages further efficiency of

    machines

    Delivery:

    y Use Information Systems to have good information visibility of stock across thedealers/retailers and different plants

    y Establish rail/road ways if required for transporting finished products from planty Have own vehicles to reduce dependency on third party transport service providers

    Safety:

    y Avoid actions that cause dust to become airborney Avoid inhalation of dust and contact with skiny Provide suitable working uniform for the workers as the environment is dustyy Provide sufficient no of exhaust fans to send out accumulated dust particles

    Cost:

    y Locate the production near to the source of raw materialy Produce cement in large quantity to fully utilize machineryy Use wastage to produce by products

    Moral:

    y Provide accidental and health insurance for employees as the health of workers would beeffected due to dust particles

    y Conduct floor meetings to address issues of workers

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    y Est lish faciliti s li schoolhospital and parks with in the town ship of employees

    Suppl i i D upli poi oduct postponement

    (Offset Printers)

    Suppl chain of Offset Printing

    y The raw material aper of different si es ,colours and quality ) will be procured from theTier-1 suppliers of papers

    y The product belongs to MTO category of productionDecoupling Point:

    y The customer would be known to the producer before the productis being producedy Ifthe decoupling point moves towards the rightthen it would be very difficultto matchcustomer requirements with the pre defined format of magazines and contenty Therefore in the case ofOffset printers the decoupling point and the product postponement

    exactly coincides

    Product postponement:

    y The production department doesnt cut paper until an order comes from the customer

    Purc

    se

    Planeapaer

    of differentcolors and

    quality

    Prepare

    Content andPage layout

    usingcomputer

    Print the Pageswith required

    quality andquantity

    elivery the

    order with incommited

    date

    DecouplingPoint

    Product

    Postponement

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    y This will delay the process of production and the production will be started according theorder

    y This approach reduces the forecast risk and the risk of inventory getting piled up because ofdecrease in demand

    y The challenge would be to deliver the order within the committed period

    Material Resource Planning

    A material requirement planning is a technique that uses the bill of material, inventory data

    and a master schedule to calculate requirements for material. MRP time phases material requirements

    based on setbacks defined by a combination of the bill of material structure and assembly lead times.

    The result of an MRP plan is a material plan for each item found in the bill of material structure which

    indicates the amount of new material required, the date on which it is required - the new schedule

    dates for material that is currently on order. If routings, with defined labour requirements areavailable, a capacity plan will be created concurrently with the MRP material plan.

    Advantages:

    y Manage production planning effectively.Visibility to forecasts as well as sales orders makesproduction planning more effective and allows for more detailed analysis of recommendations

    drawn from data. The result is better production planning and control. Site-specific inventory

    planning provides flexibility to manage each site.

    y Issue purchase orders easily and efficiently. Material Requirements Planning suggestions canbe easily converted to purchase orders which helps ensure that your flow of materials

    synchronizes with production planning. By combining multiple requirements into a minimum

    number of orders, workflow is accelerated and simplified.

    Structure of Material Resource Planning

    Bill of material

    Lead times

    nventory

    aterial

    reuirements

    programs CO

    mputer andsoftware

    Purchasing

    Data

    MRPby

    Period

    MRP by

    Datereport

    Purchase

    order report

    xception

    reports

    Order early

    or late

    Master

    Production

    Schedule

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    Material Resource planning for a product

    A master production schedule, a bill of material, inventory and purchase records, and lead times of

    each item are the ingredients of a material requirements planning.

    Lets consider a product which has requires three components

    Components:

    1 .X

    2. Y

    3. Z

    On-hand Inventory

    Component On Hand

    X 0Y 10

    Z 0

    Gross Material Requirements plan for the Product

    Component 1 2 3 4 5 6 7 8 Lead Time

    X(Required Date) 30

    X(Order Release date) 30 1

    Y( Required Date) 70

    Y(Order Release date) 70 2

    Z Required Date) 80

    Z(Order Release date) 80 4

    Net material planning

    periodX(Lot Size=1,Lt=1) 1 2 3 4 5 6 7 8

    Gross Requirements 30

    Scheduled Receipts

    On Hand 0 0 0

    Net Requirements 30

    Planned Order receipts 30

    Planned Order release 30

    Period in week

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    Component

    Y(Lot Size=1),LT=2 1 2 3 4 5 6 7 8

    Gross Requirements 70

    Scheduled Receipts

    On Hand 10 10 10 10 10

    Net Requirements 60

    Planned Order receipts 60

    Planned Order release 60

    Component

    Z(Lot Size=1),LT=4 1 2 3 4 5 6 7 8

    Gross Requirements 80

    Scheduled Receipts

    On Hand 0 0 0 0 0 0 0 0

    Net Requirements 80

    Planned Order receipts 80

    Planned Order release 80