Operations Final Report

8/19/2019 Operations Final Report

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Table of Contents

Executive summary...........................................................3Company Introduction.......................................................4

Objective of the project...........................................................5

roducts...........................................................................5 Toilet soap:........................................................................................... 5House Hold Products:...........................................................................5Liquid Glucose:.....................................................................................6

!ajor roducts......................................................................."OIL BASED SOAP NOODLES..................................................................6SOAPS ITH !ANGE O" NAT#!AL E$T!A%TS.......................................6BP & #SP G!ADE P#!E GL'%E!IN.........................................................6%LA!I"IED !I%E S'!#P.........................................................................6%ON(ENTIONAL & O!GANI% !I%E P!OTEIN..........................................)

!ain Customers......................................................................#

$nalysis of Operations.......................................................%rocess &o' chart..................................................................()acility *ayout......................................................................+,

Operational ine-ciencies................................................++atch production of speciali/ed products...............................++Translucent soap...................................................................++0enerator po'er supply........................................................+1

Conclusion......................................................................+1

Executive summary


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This report o!ers an e"tensi!e researh into the operations of #hatoon $ndustries P!t %td&

#hatoon industries is a business to business oriented ompany' with its prodution faility

situated in Gu(ranwala' Pun(ab' %ahore& The industry is a leadin) manufaturer of !arious

produts' suh as Soaps' household deter)ents' personal hy)iene produts and shampoos& The

report e"amines the !arious proesses of the ompany and studies the faility layout of

#hatoon& The paper also identifies some of the prospeti!e issues that may arise' and also

reommends steps that #hatoon ould ta*e to remo!e any wea*nesses that e"ist in its

operations& The prospeti!e issues inlude: bath prodution of speialized produts'

transluent soap prodution' and finally' ba* up ener)y osts&

Company Introduction


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#hatoon $ndustries +P!t&, %imited was established in -./0 as a laundry soap manufaturin)

ompany& 1!er the years' the ompany widened its horizons and today it is produin) the

finest brands of Toilet' Mediated' %aundry Soaps' Glyerine' Hair Shampoo' 2ae 3ash'

%otions' 4reams 5 %i6uid Deter)ents&The ompany has installed one of the most ad!aned

soap mahinery inludin) )lyerine e"tration plant and has the ability to produe soaps of all

sizes with !ariety of pa*a)in) ombination&

The ompany installed H24S7889 in -./ with the tehnial help of Samsun) Group

+#orean' Samsun) )roup, and produed hi)h 2rutose orn syrup till -..; now li6uid )luose

is bein) produed at this plant& 4ompany produes rie syrups and rie proteins for national 5

$nternational mar*et& 3e are ommitted to produe and deli!er the produt without

ompromisin) on 6uality standards and wor*in) hard for ontinuous impro!ement&

#hatoon $ndustries started its business in -./; by manufaturin) of soap on a small sale

with a small team of hi)hly professional and dediated personnel& 4ontinuously and )radually

this small unit started manufaturin) of Toilet Soap on a lar)e sale in -./


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Objective of the project3e hose a soap manufaturin) ompany named #hatoon $ndustries P!t %td& 3e studied their

produt line& 3e loo*ed at their operations& Then we analyzed their ore ompetenes& 3e had

a loo* at their faility layout&

roducts#hatoon $ndustries +P!t&, %td is an or)anization of e"ellene in the manufaturin) of

personal

are produts' household produts and %i6uid Gluose7Rie Proteen& They pride themsel!es

on pro!idin) hi)h 6uality produts beause these are bein) manufatured under e"tensi!e

6uality ontrol he*s oupled with o!er B0 years of manufaturin) e"periene' whih ha!e

pro!ided them with a uni6ue understandin) of soap hemistry and the mehanis of soap

prodution& They are able to entertain ustom formulations or ustomer may hoose any

formulation from our Cformulation libraryC whih is established after multiple years of our

R5D ati!ities&

2ollowin) list shows our broad ran)e of produts:

Toilet soap2• eauty Soap

•

Mediated Soap• Speialized Soaps

• Anti7baterial Soap

ouse old roducts2• Hair Shampoo

• Hair 4onditioner

• Hand 4leanser E Sanitizer

• Dish 3ash

• %aundry Softener

• Toilet owl 4leaner

• 2aial 4leansin) 2oamE4reamE Gel

• 4leansin) Mil* E Gel E 1il

• %i6uid leah

• %i6uid lue

• Fine)ar

*iuid 0lucose2

4larified Rie Syrup +;/7.8 D,

rown Rie syrups +;/7.8D,• Rie Protein 09


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!ajor roducts

OI* $E6 O$ 7OO6*E

They offer their ustomers hi)h 6uality soap noodles based on different blends of !e)etable

oils& Redued lead7time' ompetiti!e prie 5 ri)orous 6uality ontrols are some of the

distin)uishin) features of their soap noodles&

O$ 8IT 9$70E O) 7$T:9$* E;T9$CT

$n order to meet speifi re6uirements of our !alued ustomers' we an offer ready7to7use

soap reipes' whih are de!eloped after ontinuous researh of more than B deades& Hi)h

speed soap manufaturin) lines oupled with different pa*a)in) solutions ma*e us a

mutually benefiial strate)i partner in real sense&

< : 09$6E :9E 0*=CE9I7

Glyerin is a simple polyol +su)ar alohol, ompound& $t is a olorless' odorless' !isousli6uid that is widely used in pharmaeutial formulations& Glyerin has three hydro"yl )roups

that are responsible for its solubility in water and its hy)rosopi nature& Glyerin is used in

medial and pharmaeutial and personal are preparations' mainly as a means of impro!in)

smoothness' pro!idin) lubriation and as a humetant& Glyerin is lassified by the I&S& 2DA

amon) the su)ar alohols' as a alori maronutrient&

C*$9I)IE6 9ICE =9:

$t is olorless or almost olorless spar*lin) lear syrup' odorless and sweet taste& $t is made

from the enzymati treatment of brown rie with natural enzyme preparations' whih then

under)oes filtration and onentration to a rih' hea!y syrup& This natural sweetener has no

)enetially modified materials used in its prodution& The produt is a!ailable in ; to .8D&

CO7>E7TIO7$* < O90$7IC 9ICE 9OTEI7

1r)ani 5 on!entional Rie protein onentrate is a soure of protein with e"ellent

di)estibility& They ha!e feed )rade 5 food )rade protein with different partile sizes& $t is


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health enhanin) protein soure 5 "ellent soure of protein for humans espeially for

athletes& 1r)ani 5 on!entional rie protein is free from all food aller)ens 5 easy to di)est&

$t is 2ree from additi!es 5 hemials 5 Hypo aller)eni& $t is -009 suitable for !e)etarians

and is also a!ailable in 80 to 89 protein&

!ain Customers

Golden Pearl' Re*itt ben*iser limited +Dettol,' Treat orporation +ody )uard, are one of

their ma(or ustomers& Total ustomers of #hatoon $ndustries are B< different ompanies but

they only told us these three as they said this is onfidential information&

$nalysis of Operations

#hatoon $ndustries Pri!ate limited basially speializes in ontrat manufaturin) household

produts& #hatoon $ndustries offers their ustomers the most affordable and hi)hly reliable

ser!ie& This' in fat' is primarily the ompanys ore ompeteny' the ability to pro!ide its

ustomers with state of the art ser!ies usin) no!el tehnolo)ies and automated mahinery


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and in an effiient manner& As far as the ompanys operational strate)y is onerned' their

main aim is to pro!ide 6uality produts at the most affordable pries' basially in order to

beome ost leaders in the mar*et& They fous on mass prodution and also use latest and

most ad!ane tehnolo)y to produe their produts& This enables them to produe at a !ery

low ost as ompared to their ompetitors& The ompany also fouses on fle"ibility' whih

mean that they an ater to une"peted hi)h demand& Speed is also another plus point for this

ompany as they an deli!er produts 6ui*ly and on time& These are the basi funtions that

#hatoon $ndustrys operations re!ol!e around&

To ensure the best possible 6uality of its produt a R5D team wor*s round the lo* to ome

up with better produts and better ways to produe the produts& Raw materials are only

purhased from ertified and appro!ed !endors' and are also inspeted on re)ular basis& Also

their manufaturin) operations are inspeted re)ularly& To ensure top 6uality' final produts

are a)ain he*ed and inspeted&

To ensure least manufaturin) osts' ompany ontinues to impro!e its tehnolo)y and ways

of produin) its produts& The ompany belie!es in di!ision of labor and speialization& $t

hires wor*ers that are hi)hly s*illed in their respeti!e fields& Ha!in) a mass prodution

approah' the ompany is able to ahie!e eonomies of sale&

#hatoon $ndustries P!t %td is basially ontrat7based manufaturer& Produts are

manufatured as per order& Howe!er' as for rie7based produts' this ompany has limited

apaity a)ainst the mar*et& They follow a made to sto* approah but the produt is usually

sold ri)ht after prodution' therefore it is not Jsto*ed for lon)&

The ompany almost entirely uses mass prodution' howe!er there are ertain ustomers for

whih they follow bath prodution' as they re6uire sli)htly more speialized produts&

#hatoon has' for instane' three assembly lines for soaps and one eah for fae wash and

shampoos' and so on& #hatoon fouses primarily on mass prodution of soaps' howe!er' asmentioned abo!e' the ompany also deals in bath prodution of different (obs' suh as

shampoos and fae washes et&

rocess &o' chartThe below fi)ure indiates the proess flow hart that the industry follows' it basially

outlines the funtional areas and the flow of operations that ta*es plae in the faility&


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)acility *ayout


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The prodution faility for #hatoon P!t %td is a hea!y industry' its spread out o!er . ares of

land' and houses different plants that ater to different produt lines&

#hatoon Pri!ate ltd uses produt layout for its operations& $t enters the input materials at one

end' and the finished produt omes out at the other end of the assembly line after )oin)

throu)h 87 mahineries& The input first )oes throu)h the plodder mahine' whih rou)hly

mi"es the ontents of the raw materials& e"t stop is the mi"er' whih thorou)hly mi"es the

onstituents& After the entire ontents ha!e been properly mi"ed and the onentration has

reahed onsisteny' it then )oes throu)h the soap rotary and uttin) mahine' whih basially

shapes the bars of soap& e"t station in the assembly line is the stamper& The stamper imprints

eah respeti!e soap bar with the produt lo)o& After this' the ne"t step is that' the produt

)oes throu)h the pa*a)in) mahine and is wrapped into its separate wrappers& And thus

finally' the finished produt is artooned !ia the artoonin) mahine' and the entire proess is

o!erseen by employees' so as to maintain 6uality assuranes&

The faility also houses multiple stora)e warehouses' and #hatoon holds diferent ate)ories

of its in!entory in different warehouses& 2or instane' there are different warehouses

dediated to raw materials' and different for finished )oods' and similar is the ase for MR1s&

The flow time for the finished produt is lin*ed with the prodution run: lar)er the prodution

run' )reater the yle time to omplete the order& 2urthermore' it depends upon the a!ailable

apaity at that time and ur)eny of ustomer&

$t is hard to determine the e"at time it ta*es to produe one finished produt as the automated

mahinery arries out prodution of numerous produts simultaneously& And sine #hatoon

deals in numerous produts' the time basially !aries from produt to produt& Some produts

need (ust few hours but some may re6uire a number of days& 2or instane' the rie7based

produts that #hatoon produes ta*es appro"imately -; hours to produe&

Althou)h' the urrent faility is loated in Gu(ranwala' howe!er' ma(ority of #hatoons

ustomers are in the Sindh pro!ine& Thus' the transportation of the produt aounts for

substantial amounts of ost& 3ith the e"eption of Treat' almost all of #hatoons ustomers

are in the southern re)ion of Pa*istan& $t is for this partiular reason that it is reommended

that the ompany reloates its faility to a loation with a more suitable enter of )ra!ity& The

enter of )ra!ity


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Operational ine-ciencies

Sine #hatoon $ndustries ompetiti!e priority is low ost leadership' the ompany stri!es to

maintain its operations to *eep down the osts& Therefore' any operational defiieny in the

proess is hazardous to #hatoon&

The problemati issues that may arise' and may hinder #hatoon are identified as:

• Aidental shorta)eEwasta)e of materials

• Aidental brea* down of mehanial parts

• ner)y rises

To insure that these issues do not pro!e to be too ostly to the ompany' #hatoon is ta*in) the

followin) measures:

• Safety sto* of materials

• Sto* of spare parts

• Alternate soures of ener)y +li*e )enerator,

• Shiftin) of labor from one plant to another

The ma(or ineffiienies in the operations that we predit may pose a problem to #hatoon

industries are:

• ath prodution of speialized produts

• Transluent soap prodution

• Generator osts

atch production of speciali/ed productsThe plant remains losed prior to prodution of speialized produts' as the mahinery et

needs to be leaned thorou)hly to remo!e any traes of the pre!ious prodution& The leanin)

usually ta*es 6uite a few hours' therefore' aounts for the inreasin) opportunity ost for the

ompany&

#hatoon should perhaps ta*e steps to install a separate plant for these speialized produtions

in order to ut these time losses&

Translucent soapThe prodution of transluent soap has further pro!ed to be a ostly matter for #hatoon

$ndustries& As the material used for this form of soap is !ery Jsti*y in its )el7li*e form' it

usually sti*s to the mahinery and disrupts the assembly line&

#hatoon is loo*in) into the possibility of purhasin) a new Jsti*7proof e6uipment that will

eliminate this threat one and for all& Howe!er' in the meanwhile' #hatoon ould start

layerin) their mahinery with non7sti* plasti that ould be replaed after e!ery yle&


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0enerator po'er supply#hatoon industry prides itself based on low ost leadership' and the urrent power issue is

ta*in) its toll on the ompanys ost plan& The use of )enerators shoots the osts for the

ompany s*y hi)h&

#hatoon should start e"plorin) the possibility of alternate ener)y soures that would be more

!iable for them *eepin) in mind the ost onstraints& Solar ener)y is the most reommended

alternati!e& And the ompany mi)ht e!en hoose not to install suh hea!y solar panels' as it

ould afford to run e!en on 809 apaity durin) when the power is out& This would perhaps

slow down prodution' but would indeed sa!e up osts&

Conclusion#eepin) in mind the reommendations made' #hatoon industries ould further impro!e its

operations' and thus' stren)th its ompetiti!e priority of low ost ost leadership&

Operations Final Report

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