Main Report

CHAPTER 1 – INTRODUCTION OF THE COMPANY

ABOUT ASHAPURA INTERNATIONAL

Basic information of the company

Name & address of the unit:

Ashapura International

Pvt.Ltd.

Opp. Kutch dairy

Madhapar-370020

Mission of the company:-

We will live up to our name…We will consistently work to realize hopes…

Ours and those of our stake holders, customers, Business Associates, Shareholders,

Employees, Community, Governments…

Vision of the company:-

Our Vision is to emerge as a world class company and preferred partner to

diverse industries through proactive customer support, innovation and cutting edge

technology. Our standards of integrity, reliability and social responsibility will

become benchmarks for other companies to emulate. The commitment, zeal and team

spirit of our human resource will enable us to transform this vision to reality.

“Give a man orders and he’ll do the task reasonably well. But let him set his

own targets gives him freedom and authority, and his task becomes a personal

mission: “I CAN”. (It is constant source of motivation for their people)

Belief of the company:-

Transparency, system and controls are essential factors in the success and

growth of the company.

Tolani Institute of Management Studies

Different companies of group :-

1. Ashapura minechem

2. Ashapura international

3. Ashapura exports

4. Ashapura Volclay

Promoter of the company:-

Mr. Navneetbhai r. Shah

Quality policy

We shal constantly strive to provide maximum satisfaction to customer, share

holders, and employee through continuous improvement in the quality system and

processes and with the involvement of all our employees

Year of establishment:-

September, 1960

Bankers:- ICICI BANK

AXIS BANK

SBI BANK

Registerd office: Jivanudyog building

3rd floor,Mumbai-400001.


History of the company

The Ashapura minechem pvt. Ltd. is a company, which has been promoted by its

Executive chairman Mr. Navneet R. Shah, has established his mining factory with

partnership in 1960. By 1980 business flourished due to export of drilling grade of

Bentonite to the Middle East. The Chair man has situated his first plant at Madhapar-

Kutch.

1972 :First export order received from Yugoslavia and then Iraq

1975 :Chetan Shah, the Chairman’s son, joins the business

1980 :The Shah family separated from their partners

1980 :Alternate uses of Bentonite explored like oil & water well drilling, iron ore pelletization, metal

casting, civil engineering, bleaching clay etc

1982 :The partnership firm was converted to a Company

1995 :Cat Litter business was started

2006 :Rs. 2500 crore Kutch alumina refinery project receives final OK from Gujarat Government


AshapuraVolclay:

This is a joint venture company established by Ashapura Minechem

Ltd. with AMCOL Int. Corp. of USA for manufacturing Bentonite and clay

based value added products in India. It has a state-of the art bleaching earth

manufacturing facility at Bhuj, Gujarat, in technological collaboration with

Japan’s Mizusawa Industrial Chemicals Limited. AVL is the only company

outside of Japan licensed to use the ‘Galleon’ brand of bleaching earth used

worldwide to refine edible oil. The company also has the reputation for being

the first Indian Company to manufacture Geosynthetic Clay Liners (GCL) in

technological collaboration with Colloid Environmental Technologies

(CETCO), the global leader in GCL technology, which is a subsidiary of

AMCOL.

Ashapura International Ltd.:

Ashapura International Ltd. is the largest supplier of Foundry Grade

Bentonite. The company is a key supplier to all major foundries in India. The

company also supplies lumps to all the major pelletisation plants situated

across the country


Awards of Ashapura

Recently Ashapura exports was awarded

“international quality crown award in platinum

category” and received by Mr. G. C. Mehta,

general manager business development during

16th international quality B.I.D. - qc100 convention

- London 2004 for excellence and business prestige.

It was part of the annual programme of bid, business initiative directions awards,

designed to recognize outstanding companies and businessmen. The awardees

included well established, global fortune 500 list companies over the last 100 years.

B.I.D, the world's premier marketing

information firm has been busy surveying 9500

companies worldwide. In every area from TQM

(total quality management) to customer satisfaction,

communication strategies, benchmarking,

information and data analysis, leadership, planning,

and ISO 9000, Ashapura exports PVT. Ltd. has emerged undisputed winner

Ashapura Group of Industries won the

“Certificate of Merit for Fair Business Practices” on

April 25, 2011.

Social contribution


The company actively seeks opportunities to share its success with the

communities in areas where it operates. Our slogan says 'Value beyond Mining' but

we are committed to Value beyond Profits as we plough back funds into social

welfare schemes in Kutch. We have a long way to go in this area and we are

determined to make a difference in the lives of the less fortunate.


Company Profile

Basic Information

Company Name: ASHAPURA INTERNATIONAL LIMITED

Business Type: Manufacturer

Product/Service

(We Sell):

Bentonite, attapulgite, ashagel(attagel), China clay,

feldspar, bauxite and other minerals

Number of Employees: 501 - 1000 People

Trade & Market

Main Markets: North America

South America

Western Europe

Eastern Europe

Eastern Asia

Southeast Asia

Mid East

Africa

Oceania

Factory Information

Number of R&D Staff: 11 - 20 People


Organizational structure

Organization structure is teamwork of the formal relationship that has been

established. The purpose of the structure is to assist in regulating and directing the

efforts of an organization so that they are co-ordinate and consistent with

organization.

Organization structure of the company shows the interrelationship between

employer and employee or vice- versa. It shows a clear cut line of authority,

responsibility and accountability.

Among the various types of organization structure Ashapura International Ltd

has adopted this structure.


Managing Director

Chief Operation

Officer

CEO- Domestic Operation

CEO-Internationa

Operation

Chief Finance Officer

VP ACCOUNTS & FINANCE

Operations of the business

LOCATION OF FACILITY FOR ASHAPURA

1. From Mines: - 80 K.M.

2. From Port: - Kandla 65 K.M.

Mundra 75 K.M

3. Connected to National Highway No.8 & State Highway.

4. Railway Station: - 10 K.M.

The purpose of the location of Ashapura in Kutch is to find an optimal

location which will result in the greatest advantage to the organization.

There is minimal wastage of resources because of this location.

Material is taken from Mines which available very much nearby.

The plant is quite near to Sea ports, Railway station.


Product profile

1. Bentonite

Ashapura is India’s largest and one of the

top five players in Bentonite globally. The

Company has extensive reserves of high quality

Sodium and Calcium Bentonite which are mined

& processed carefully into several grades. These

are in different forms such as dried & crushed

lumps, granules, powder to micronized powder,

catering to diverse needs of clients. Our

Bentonite’s products cater to a wide range of industries starting from the conventional

usage areas of Iron Ore Pelletisation, Drilling, Metal Casting, Construction, Pet Litter

etc. to value added areas such as paper, detergents etc.

Bentonite is a highly colloidal clay mineral which gets its name from the place

where its presence and usages were first discovered – Fort Benton, America. The

multiple properties of bentonite namely hydration, swelling, water absorption,

viscosity, thixotropy make it a multi-application product for diverse industries.

Primarily two varieties of bentonite are available - sodium bentonite (high swelling,

gelling and thermal durability) and calcium bentonite (more commonly available

worldwide but with less swelling).

Uses

clays. Clay has been used for healing from prehistoric times

onwards.Much of bentonite's usefulness in the drilling and geotechnical

engineering industry comes from its unique rheological properties.

Bentonite can be used in cement, adhesives, ceramic bodies, and cat

litter.

Bentonite is also used as a binding agent in the manufacture of taconite

pellets as used in the steelmaking industry.


http://en.wikipedia.org/wiki/Taconite

http://en.wikipedia.org/wiki/Cat_litter

http://en.wikipedia.org/wiki/Cat_litter

http://en.wikipedia.org/wiki/Ceramic

http://en.wikipedia.org/wiki/Adhesive

http://en.wikipedia.org/wiki/Cement

Fuller's earth, an ancient dry cleaning substance, is finely ground

Bentonite, typically used for purifying transformer oil.

Bentonite clay is also used in pyrotechnics to make end plugs and rocket

nozzles.

The ionic surface of Bentonite has a useful property in making a sticky

coating on sand grains. When a small proportion of finely ground

Bentonite clay is added to hard sand and wetted, the clay binds the sand

particles into a moldable aggregate known as green sand used for making

molds in sand casting.

The self-stickiness of Bentonite allows high-pressure ramming or

pressing of the clay in molds to produce hard, refractory shapes, such as

model rocket nozzles.

Bentonite also has the interesting property of adsorbing relatively large

amounts of protein molecules from aqueous solutions. It is therefore

uniquely useful in the process of winemaking, where it is used to remove

excessive amounts of protein from white wines.

Bentonite has been prescribed as a bulk laxative, and it is also used as a

base for many dermatologic formulas. There are also many other

medicinal uses for Bentonite and related

Available reserves of Bentonite .

In 2005, United States. was the top producer of Bentonite with almost one-third

united states in an area between the black hills of south Dakota and the bighorn basin

of Wyoming world share followed by china and Greece, reports the British geological

survey.

The absorbent clay was given the name Bentonite by Wilbur c. knight in 1898,

after the cretaceous Benton shale near Rock River, Wyoming.

Most high-grade natural sodium Bentonite is produced from the western. Mixed

sodium/calcium Bentonite is mined in Greece, Australia, India, Russia, and the

Ukraine. In the United States, calcium Bentonite is mined primarily in Mississippi and

Alabama. Other major locations producing calcium Bentonite include Germany,

Greece, turkey, India, and china


http://en.wikipedia.org/wiki/White_wine

http://en.wikipedia.org/wiki/Winemaking

http://en.wikipedia.org/wiki/Protein

http://en.wikipedia.org/wiki/Adsorption

Industrial growth for Bentonite

Maintaining modest growth, the world Bentonite, fuller's earth and allied clays

market is forecast to exceed 164 million metric tons by 2010. Global drilling rig count

market is expected to spur growth in Bentonite and related clays market.

Grades of bentonite :

1. NATURAL: SODIUM BASED

2. NATURAL: CALCIUM BASED

3. DRILLING MUD: OCMA DFCP-4

4. DRILLING MUD: API 13-ASEC -4

5. DRILLING MUD: API 13-ASEC -6

6. CILIL ENGG.:PILLING GRADE

7. IOP GRADE

8. CAT LITTER GRADE

9. CASTING FOUNDRY GRADE

10. PAPER FILLING/ BINDER GAGE


Mining

Definition of mining

The process or business of extracting ore or minerals from the ground

Laws regarding mining process

1. The Mines and Minerals (Development and Regulation Act, 1957, ('MMDR')

2. The Mines Act, 1952

The relevant rules in force under the MMDR Act

1. Mineral Concession Rules, 1960,

2. Mineral Conservation and Development Rules, 1988

The health and safety of the workers is governed by the Mines Rules, 1955

created under the jurisdiction of the Mines Act, 1952.

The Mineral Concession Rules, 1960

Itoutlines the procedures and conditions for obtaining a Prospecting License or

Mining Lease.

The Mineral Conservation and Development Rules, 1988


Authoritites looking after process of mining

For survey and exploration

1. Geological Survey of India (GSI)

2. Mineral Exploration Corporation Limited (MECL)

For regulation and conversion

1. Indian Bureau of Mines (IBM)


SWOT Analysis of Mining industry in India

Strengths:

1. The government offers a wide range of concessions to investors in India, engaged

in mining activity. The main concessions include, inter alia:

* Mining in specified backward districts is eligible for a complete tax holiday for a

period of 5 years from commencement of production and a 30 percent tax holiday for

5 years thereafter.

* Environment protection equipment, pollution control equipment, energy saving

equipment and certain other equipment eligible for 100 percent depreciation.

* One tenth of the expenditure on prospecting or extracting or production of certain

minerals during five years ending with the first year of commercial production is

allowed as a deduction from the total income.

* Export profits from specified minerals and ores are eligible for certain concessions

under the Income tax Act.

2. World's largest producer of mica; third largest producer of coal and lignite &

barites; ranks among the top producers of iron ore, bauxite, manganese ore and

aluminum.

3. Labors easily available.

4. Lowlabor and conversion costs.

5. Large quantity of high quality reserves.

6. Exports iron-ore to China and Japan on a large scale.


7. Strategic location: Proximity to the developed European markets and fast-

developing Asian markets for export of Steel, Aluminum.


Weakness:

1. Coal mining in India is associated with poor employee productivity. The

output per miner per annum in India varies from 150 to 2,650 tons compared

to an average of around 12,000 tons in the U.S. and Australia; and

2. Historically, opencast mining has been favored over underground mining. This

has led to land degradation, environmental pollution and reduced quality of

coal as it tends to get mixed with other matter;

3. India has still not been able to develop a comprehensive solution to deal with

the fly ash generated at coal power stations through use of Indian coal. Clean

coal technologies, such as Integrated Gasification Combined Cycle, where the

coal is converted to gas, are available, but these are expensive and need

modification to suit Indian coal specifications.

4. Poor infrastructure facilities

5. Mining technology is outdated

6. Low innovation capabilities

7. Labor force is highly un-skilled and inexperienced

8. High rate of accidents

9. Lack of R&D programs and training and development

10. Most of the Indian mining companies do not have access to Indian capital

market

11. There is a lack of respect for the mining industry and it suffers from the

incorrect perception that ore deposits are depleted.

12. There is limited access to capital, and mines are increasingly more costly to

find, acquire, develop and produce.

13. There are long lead times on production decisions.

14. The Indian mining industry suffers from an out-dated, unattractive approach to

mining education that is partly to blame for insufficient human resources.

15. Improvement in operational efficiency of the mining companies - Mining

companies are in need of an organizational transformation to gradually align

its operating costs to international standards. To match productivity, they will

need to invest in new technologies, improve processes in planning and


execution of projects, and institutionalize a comprehensive risk management

framework.

16. Mining operations are not environment friendly. Least importance is given to

environment concerns.


Opportunities

1. Potential areas for exploration ventures include gold, diamond, copper, lead,

zinc, nickel, cobalt, molybdenum, lithium, tin, tungsten, silver, platinum group

of metals and other rare metals, chromate and manganese ore, and fertilizer

minerals.

2. Considerable potential exists for setting up manufacturing units for value

added products.

3. There exists considerable opportunities for future discoveries of sub-surface

deposits with the application of modern techniques.

4. Current economic mining practices are generally limited to depths of 300

meters and 25 percent of the reserves of the country are beyond this depth

5. Estimated 82 billion tones of reserves of various metals yet to be tapped

6. While India has 7.5% of the world's total bauxite deposits, aluminum

production capacity is only 3% of world capacity, indicating the scope and

need for new capacities


Threats:

1. Large integrated international metal manufacturers including POSCO, Mittal

Steel and Alcan have announced plans for expansion in India

2. Mining companies and equipment suppliers are under the constant threat of

being taken over by foreign companies.

3. A heavy tax burden discourages further investment.

4. Politicians undervalue the industry's contributions to the economy. Stricter

environment rules restricting mining activities


Grinding

Definition of grinding

Machining process:-

(a) To shape components that are too hard to be machined by conventional

methods such as hardened tool steels and case or induction hardened components.

(b) To obtain a high degree of dimensional accuracy and surface finish on a

component.

(C)Grinding is the required process when size reduction of below 5-20 mm is

needed. Grinding is a powdering or pulverizing process

In Ashapura International they use Raymond mill for grinding process.

Raymond Mill

The purpose of the raymond mill is to grind materials in the fields of building materials, mining, metallurgy and chemical industry. The materials must be non-flammable and non-explosive materials such as: kaoline, medical stone,manganese ore, iron ore, glass, active carbon, carbon black, fireproof materials, heat preservation materials, chemical materials and so on(300 kinds of materials). The materials should have the hardness less than 7 in Moh’s scale and humidity less than 6 percent. The granularity of the end products can be adjusted from 30 to 325 meshes.


CHAPTER 2 - OBJECTIVES

Objective is must for any study being done. It is an instrument for

understanding thing better. Without an object it would be difficult to know how to

proceed with the project. The objective gives a direction to the study.

The primary objectives of this study are as follows:

1. To understand various departmental process and their interrelation within the

organization.

2. To study the inventory management policy followed by the company.

3. To know the waste and process improvement of the company.

4. To know the practice of lean manufacturing in the company.


CHAPTER 3–METHODOLOGY

Research means a careful investigation or inquiry especially through search

for new facts in any branch of knowledge. Thus it is an original contribution to the

existing stock of knowledge making for advancement and research methodology is a

way to systematically solve the research problem.

An appropriate methodology is an essence of any research work. The success

of any project depends upon the method chosen. The project is about the inventory

management.

This study was done at Ashapura International private ltd.bhuj during 15 th may

2011 to 30thjune 2011.

Research design

It gives smoothness of various research operations there by making research as

efficient, take maximum information with minimal expenditure, efforts, time and

money. Data has been collected through observations& research design is exploratory

research design

Sample size

A sample size cannot be given here because this study is purely based on

secondary data and no field study is necessary for this analysis. I did 4 weeks of

observation and 2 weeks of analysis on collected data. I got this information from

project guide, manager of the company, operator of the machine and heads of the

department

Analysis

Analysis of data is most essential and difficult task in the present report. An

attempt has been made to analyze operations of the company effectively so that

proper analysis can be made of operations of the company.


CHAPTER 4 – FINDINGS

Production figures details at madhapar


Production Capacity at Madhapar :-1,50,000 M.T.

Raw Material stock Capacity at Madhapar :- 17,000 M.T.

Finished Material Stock Capacity at Madhapar :- 10,000 M.T.

Grinding department

Bentonite

Production target 150000ton/year

Production capacity 120000ton/year

Rejected material status 2200ton/year

Rejected material policy They mix it with other lower

grades

Quality parameter checking They check it in their central lab

that material is as per

specification or not

Daily stock 7000-8000ton

Daily consumption 330 ton

Daily dispatch 400 ton

New supplier finding It mostly comes from their own

mines besides this they have 8

suppliers

Emergency view parameter They keep predecided min stock

Tentative inventory target 11000 ton

Packing department

Bentonite

Production target 150000ton/year

Production capacity 103000ton/year

Rejected material status 1300ton/year

Rejected material policy They mix it with raw material

Quality parameter checking They check it in their central lab

that material is as per

specification or not



Dispatch department

Bentonite

Production target4 450ton

Production capacity 400ton


Tentative inventory target 8000 ton


Production process

1. In production process first, raw material for different grade of bentonite comes

from their own mines in mandavi and matanamadh.

2. After that they keep that raw material in their yard and stock it

3. After this they do feeding of raw material in weasels’ for

production .according to their production schedule for different grades and

specification.

4. After this they perform grinding process on that material according to grade

and customer specification

5. After grinding if product is ready for dispatch than it goes to direct packing

6. In direct packing if they have order for that than they did direct dispatch of it

and if they don’t have order for it they do finished goods stocking for it

7. when finished goods have order than it go to direct dispatch


raw material recieved from mines

raw material stoking at yard

raw matterial feeding for production

grinding

sylo

packing

direct packing

finished goods stocking direct dispatch

trucks/trailors rack

8. .Direct dispatch done in truck/tailors or in rack

9. After grinding if product is not ready than it goes to sylo, which is one kind of

weasel for more process

10. After this they do packing of it and send it into finished goods and then into

direct dispatch


Production process for bentonite division


MINING

MiningActivationDryingStackingDespatch to Factory/ Port/ Customer

GRINDING

Material stacking at Raw material yardClassification according to gradeFeeding for grindingGrinded material packed/ stock in sylo.

PACKING & DESPATCH

Packed according to customer requirement in different packing- 25 kg/ 50 kg/ 1 M.T. Jumbo Bag/ 1.25 & 1.50 M.T. Jumbo bagPacked Material stacked Despatch according to shedule

General process

1. First customers of gives order to marketing department and material

specification which includes what grade and quality parameter customer

needed in that order

2. It also include that in what packing type and in what schedule customer need

that order .there are various types of packing in bentonite .there are various

types of packing in bentonite which includes

1. 25 kg packing

2. 50 kg packing

3. 1 metric ton packing


customer

marketing department

material specification

production depatment

material recieved at plant

non confirm material

check for other suitable grade

confirmed material

stacking

grinding

packing and labeling

dispatch

mining department

available material diging material

actication

stock

4. Loose cargo:

If customer wants bentonite in very big quantity than order is

send by ship to customer

3. Now marketing department send one copy of material specification to

production department and one other copy to mining department

4. By which production department prepare planning of production and

according to that they prepare their production schedule .according to that they

give material demand note to mining department

5. After receiving ,material demand note from production department .now

mining department will see that material which production department

demands is available or not

If material is available at mining department

6. If material which production department is asking for is available than they

transport it to plant and it comes to material received at plant

If material is not available at mining department

7. If material is not available at mining department than they have to do digging

Process to get that material from their mines and it goes to digging material

8. For digging of that particular material they need to activate their mines

9. After activation of mines, they get that material from their mines and send it

to production department therefore it goes directly to material received at

plant


10. Now, they have to do material lab testing of material which they receives from

mines to see that material is o.k. in terms of grade and quality parameter

which is decided. This process is performed at their central lab which is at

their plant there are different norms to check the material. some materials are

checked in shifts and some materials are checked on hour to hour basis

If material passes the checking process

11. If material is as per the norms and it pass the testing process than it goes to

confirmed material

12. Material which passes the lab testing and which is confirmed material they do

stacking of it

13. After this they perform grinding process on it

14. After grinding they do packing and labeling of it

15. After packing and labeling they dispatch it customer


Bentonite mining activity process lay out


Digging started according Mining Plan.Material Spread to Plot for activation if Space is available or Send to Satta for Stock this material activated whenever Space is available.Overburden is removed & stacked at Mines.

Mining

Sample Received from mines for natural Lumps, Lab gives instruction for adding chemicalsMaterial is spread in to Plot for Drying.Sizing is done by tractrs to reduce lumps Size.Activation 1.

After Reducing Size of LUMPS MATERIAL is left for Sun Drying.After sundrying Chemical is added through tractor tanket with water. Material is Ploughed by tractor to reduced moisture Level.On Certain Moisture Level material is considered as dried Material .

Activation 2.

Material is Desptach to Factory or Port or to customer as per requirement.If Material is not required at that time material will be tranfer to Satta by using tractor & Loader.Stacking

Material is desptach through trucks/ Trailors according to Requirement by Road.

Despatch

BENTONITE FACTORY PROCESS LAYOUT


Material received from mines weighment is done in factory on weighbridge

Material unloaded at Raw Material stacking yard & Laboratry take samples

( To decide in which grade it will be more suitable)

Material stacked Or taken for production

Material is feeded to Hopper by Jcb

Material is feeded to grinding mill by belt

conveyor

Material is grinded & Direct Packed & stacked by Forklift or Despatch

TY PES OF INVENTORY

Cycle inventory:

The portion of total inventory that varies directly with lot size

Application:

At Ashapura International Ltd production cycle is not so long. They keep cycle

inventory of one month

Safety stock inventory:

Surplus inventory that a company holds to protect against uncertainties in

demand, lead time and supply changes.

Application:

For raw material, they have internal source of supply because raw material for

production of different grades of Bentonite comes from their own mines in mandavi

and matanamdh .they give production schedule for each month .The mining

department is fully aware that for which grade how much raw material they need

for .so they don’t face problems of lead time and supply changes. So, there is no

danger that production is disrupted; therefore they don’t keep any safety stock

inventory

But for packing material they keep safety stock of it because it comes from

external source of supply. So in that they might have to face problems of lead time

and supply changes. They ordered it in such a way that it comes before minimum

stock.


Anticipation inventory:

Inventory used to absorb uneven rates of demand or supply, which businesses

often face.

Application:

Ashapura International Ltd deals in industrial product like bentonite so season is

not applicable to it. And demand of their product remain similar throughout the

year .they have internal source of suppliers. As raw material comes from their own

mines so there are very less chances of any occurrence of problem from

supplierstherefore; they don’t keep any anticipation inventory

Pipeline inventory:

Material moving from one point to another in the materials flow system. Materials

moves from suppliers to plant, from one operation to next in the plant, from the plant

to a distribution center or customer and from distribution center to retailer. Pipeline

inventory consider orders that have been placed but not yet received

Application:

At ashapura international they keep 10%of total inventory as Pipeline inventory


PLACEMENT OF INVENTORIES

The positioning of a firm’s inventories supports its competitive priorities.

Inventories can be held at the raw materials, work-in-process, and finished goods

levels. Managers make inventory placement decisions by designating an item as either

a special or a standard.

Special: An item made to order. If purchased, it is bought to order.

Standard: An item that is made to stock or ordered to stock, and normally is

available upon request.

Application

Ashapura International Ltd deals in Bentonite and they make product according to

customers order and buy raw material on the bases of their order so we can say that

Ashapura International ltd deals in special product

Which lot sizing rule they use for inventory management?

Periodic order quantity:

A rule that allows a different order quantity for each order issued but tends to

issue that order at predetermined timed intervals.

Application

At Ashapura International Ltd, they use POQ (periodic order quantity) rule for

inventory.beacause they keep the raw material for the orders of one month in advance.

They ordered raw material for different grades of Bentonite according to their

production schedule. According to that they give order to their suppliers


What level of inventories they keep?

Application

They neither keep high inventory nor low inventory because of advantages

and disadvantages of that. So they keep balance of it. They order inventory according

to sales plan they order the raw material for one month’s order


LEAN SYSTEM IN ASHAPURA INTERNATIONAL

Lean systems are operations systems that maximize the value added by each of a

company’s activities by paring unnecessary resources and delays from them. Lean

system affect a firm’s internal linkages between its core and supporting processes and

its external linkages with its customers and suppliers.

JIT system

A system that organize the resources, information flows and decision rules in that

enable a firm to realize the benefits of JIT principal

JIT philosophy:

The belief that waste can be eliminated by cutting unnecessary capacity or

inventory and removing non-value added activities in operations

Application:

They prepare scheduling of production for one month. They also sub divided it

into weekly production. So; they keep their resources, information flows and decision

rules according to it. In that manner they use JIT system in production.

Pull method of work flow:

Pull method

In this method, they start producing their product or service after demand occurs

when the pull method is used customer demand activates the production of good or

service firms using pull method must be able to fulfill the customers demand within

an acceptable amount of time.

Application:

Company uses pull method for grades which are not come in common grades like

high bone and supra bone


Push method

A method in which production if the items begins in advance of customer needs

and when demand occurs they give it to their customers. They keep inventory of it in

advance .so, customer don’t have to wait more for satisfaction of their order

Application:

Company produces common grade like high bone, supra bone in advance. So for

that they use push method in it

Quality at the source:

It is an organization-wide effort to improve the quality of a firm’s products by

having employees act as their own quality inspectors, and never pass defective

units to next stage.

One approach for implementing quality at the source is to use poka-yoke

Poka yoke

Mistake proofing methods that aimed at designing fail-safe system that minimizes

human error. Consider for instance a company that makes modular products in such a

way that allows them to be assembled in only one way-the correct way

Application:

At Ashapura International Ltd they give training to their workers at regular time

interval about their work and what they should do in emergency situation like if any

accident or fire happens than in what manner they have to behave in that particular

situation

Another approach for implementing quality at the source is a practice the Japanese

call jidoka, and andon, it gives machine and machine operator the ability to detect the

occurrence of any abnormal condition. Employees are than authorized to signal or for

help or stop production line if needed. Stopping a production line, however, cost a

company thousands of rupees. Each minute production is halted. Needless to say,


management must realize the enormous responsibility this method puts on employees

and must prepare them properly

Application:

At Ashapura International Ltd machine operator has ability to detect the

occurrence of any abnormal condition And they are authorize to turn off the machine

after taking supervisors permission


5S IMPLEMENTATION AT ASHAPURA INTERNATIONAL L

LTD

1. Short:

Separate needed from unneeded items (including tools, parts, materials and

paperwork) and discard the unneeded

Application:

Ashapura international Ltd is ISO certified company therefore they differentiate

wastes from the process and restore it.

2. Straighten:

Neatly arrange what is left with a place for everything and everything in its place

and organize the work area so that is easy to find what is needed


Application:

At Ashapura International Ltd, they prepare production schedule for one month.

In that also they divide production schedule on weekly basis and according to that

they arrange their process

3. Shining:

Clean and wash the work area and make it shine

Application:

Ashapura International Ltd is ISO certified they keep shining as per norms of laid

down, they do housekeeping regularly and by that they keep work place clean.

4. Standardize

Establish schedules and methods of performing the cleaning and shoting.formalize

the cleanness that results from regularly doing 3S practices so that perpetual

cleanliness and state of readiness is maintained

Application:

At Ashapura International Ltd production process carries out according to process

flow chart. According to that they do their work. By that they know that which

activity is performed by whom in organization

5. Sustain

Create discipline to perform the first 4S practices, whereby everyone understands,

obeys and practices the rules when in the plant. Implement mechanisms to sustain the

gains by involving people and recognizing them via a performance measurement

system

Application:

Ashapura International Ltd is ISO certified company. Therefore they doaudits at

regular intervals to create discipline to perform the first 4S practices


ABC analysis:

The process of dividing items into three classes. According to their cost usage, so

that manager can focus on items that have highest cost value. This method is the

equivalent of creating a Pareto chart except that it is applied to inventory rather than

to process errors

Application:

At Ashapura International Ltd they don’t do ABC analysis for their normal

inventory which they use to make their product Bentonite.

In, engineering store space, for machinery spare parts that are related to plant for

that they do ABC analysis. They focus more on that machinery spare parts which

occurs more cost


CHAPTER – 5 LIMITATIONS OF STUDY

1. It is difficult to get information from net

2. Limitation of the study is up to Ashapura International Pvt. Ltd., Bhuj only.


CHAPTER – 6 CONCLUSIONS

From the thorough assessment of my study on “INVENTORY MANAGEMENT

AND LEAN SYSTEM” I Concluded that Controlling techniques relating to the

general inventory in Ashapura International Ltd are developed with the objective of

ensuring that the inventory will be controlled in an effective manner, without having

any loss to the inventory therefore they order their inventory according to their

production schedule which they made on monthly bases according to details of orders

they received from their customers and they also divide it on weekly bases so they

ensure minimum wastages of inventory.

Production & Inventory Management system is very much complex & dynamic by its

nature. Daily new Problems, challenges & new learning come across. Its fully depend

upon an individual how he/she takes that

For wastage they have different provision a different stage. Ashapura International is

ISO certified company so they follow total quality management.

They divide all grades in three catagories: first, second and third according to quality

and if it is possible than they mix that wastage with lower grades material and if it not

possible than they sell it at lower price.

At last I would like to say that there is proper control of inventory in the organization.

Inventory management is done at par. Ashapura International Ltd is ISO9001:2000

certified company and 5S technique is implemented in Ashapura International Ltd


LEARNINGS

How to use classroom knowledge in practical world.

How to behave in corporate culture

Interaction & communication with more people

To have patient while collecting information

How to relate theory with practical knowledge


CHAPTER – 7 BIBLIOGRAPHY

Book

Krajewski L, Ritzman L, Malhotra M, Operation Management: Processes and

Value Chains,( 8thediton; Pearson Hall,2008) Ch 9,pp.348-370,ch-12,pp.467-

509,ch-15,pp.635-667

Internet

http://www.indexmundi.com/en/commodities/minerals/bauxite_and_alumina/

bauxite_and_alumina_table11.html date of site visited 03-05-2011

http://www.indexmundi.com/en/commodities/minerals/bauxite_and_alumina/

bauxite_and_alumina_table11.html date of site visited 07:-05-2011

http://www.indexmundi.com/en/commodities/minerals/clays/clays_t18.html

date of site visited 09:-05-2011

http://www.ashapura.com/social.htm date of site visited 13-05-2011

http://www.purapet.com/awards-platinium.htm date of site visited 15:-05-2011

http://www.ashapura.com/AW2010.htm date of site visited 11-05-2011

http://www.thefreedictionary.com/miningdate of site visited 18:-05-2011

http://mines.nic.in/minesact.html date of site visited 03:-06-2011

http://mines.nic.in/imsene.html date of site visited 11-06-2011

http://metals.about.com/library/bldef-Grinding.htm date of site visited 07:-06-

2011

http://www.alibaba.com/member/sumanhmp.html date of site visited 04-06-

2011


http://www.alibaba.com/member/sumanhmp.html

http://metals.about.com/library/bldef-Grinding.htm

http://mines.nic.in/imsene.html

http://mines.nic.in/minesact.html

http://www.thefreedictionary.com/mining

http://www.ashapura.com/AW2010.htm

http://www.purapet.com/awards-platinium.htm

http://www.ashapura.com/social.htm

Main Report

Documents

Transcript of Main Report