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A

Report

On

Production Planning and Control of

Paint Industry

Submitted to: Submitted by:

Dr. H.J.Jani Chirag Vaghela(12009)

Director of GHPIBM Mayur Dave(12024)

Parth Joshi(12031)

Vikin Jethwa(12046)

MBA 1st year (2nd Sem)

Batch: 2012-2014

G.H.Patel Post Graduate Institute of Business Management,

Sardar Patel University, Vallabh Vidhyanagar.

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INDEX

1. Production and operation management………………………………6 - Definition………………………………………………………………………………………6

- Product…………………………………………………………………………………………6

- Plant……………………………………………………………………………………………..6

- Process………………………………………………………………………………………….6

- Programmes………………………………………………………………………………….7

- People…………………………………………………………………………………………..7

2. Berger Colour Company Limited………………………………………………………….8

- Company overview………………………………………………………………………...8

- History…………………………………………………………………………………………..8

- International operation………………………………………………………………….9

- Company profile…………………………………………………………………………….11

- Employee information……………………………………………………………………12

- Equipment……………………………………………………………………………………..12

- Company’s functioning system………………………………………………………13

- Production: types…………………………………………………………………………..14

- Cycle of production function………………………………………………………….20

- Production system…………………………………………………………………………21

- Store procedure……………………………………………………………………………..21

- Production process…………………………………………………………………………..22

- Plant layout………………………………………………………………………………………23

- Production planning and control……………………………………………………….24

- Factor affecting location……………………………………………………………………26

3. Delite colour pvt ltd…………………………………………………………………………………..27

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- Introduction………………………………………………………………………………………..27

- Performance………………………………………………………………………………………..27

- Customers…………………………………………………………………………………………..28

- Raw materials……………………………………………………………………………………..28

- Machines……………………………………………………………………………………………..28

4. Small scale industry:……………………………………………………………………………………..28

- Objective………………………………………………………………………………………………..29

- Scope………………………………………………………………………………………………………29

- Quality certificate…………………………………………………………………………………..30

5. Facility location……………………………………………………………………………………………32

6. Layout…………………………………………………………………………………………………………33

7. Conclusion…………………………………………………………………………………………………….34

8. Bibliography…………………………………………………………………………………………………..35

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PREFACE

Production/operations management is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization. We got an opportunity to analyze a large scale manufacturing industry and a small scale industry. We got to know how the production and operation in this company is carried out. We also learned how they handle materials.

The study report will definitely help us to build a strong base by

understanding various wide concepts of Small Scale and Large Scale Industry which form an essential part of our study. It has helps us to understand about proper functioning.

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ACKNOWLEDGEMENT We would like to thank Dr. H.J.Jani, under whose guidance we have prepared our

study report .It is his depth knowledge and core understanding about the topic made us clear about our work study .We thank him for his sincere efforts without which our project would not have been a success.

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Production and operations management

Definition:

Production and Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers.

The process in the above diagram is often referred to as the "Conversion Process". There are several different methods of handling the conversion or production process - Job, Batch, Flow and Group POM incorporates many tasks that are interdependent, but which can be grouped under five main headings:

PRODUCT:

Marketers in a business must ensure that a business sells products that meet customer needs and wants. The role of Production and Operations is to ensure that the business actually makes the required products in accordance with the plan. The role of PRODUCT in POM therefore concerns areas such as: Performance, Aesthetics, Quality, Reliability, Quantity, Production, costs, Delivery dates.

PLANT

To make PRODUCT, PLANT of some kind is needed. This will comprise the bulk of the fixed assets of the business. In determining which PLANT to use, management must consider areas such as:

- Future demand (volume, timing) - Design and layout of factory, equipment, offices - Productivity and reliability of equipment - Need for (and costs of) maintenance - Health and safety (particularly the operation of equipment) - Environmental issues (e.g. creation of waste products)

PROCESSES

There are many different ways of producing a product. Management must choose the best process, or series of processes. They will consider:

- Available capacity - Available skills - Type of production - Layout of plant and equipment - Safety - Production costs - Maintenance requirements

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PROGRAMMES

The production programme concern the dates and times of the products that are to be produced and supplied to customers. The decisions made about programme will be influenced by factors such as:

- Purchasing patterns (e.g. lead time) - Cash flow - Need for / availability of storage - Transportation

PEOPLE

Production depends on PEOPLE, whose skills, experience and motivation vary. Key people-related decisions will consider the following areas:

- Wages and salaries - Safety and training - Work conditions - Leadership and motivation - Unionization - Communication

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BERGER COLORS COMPANY LIMITED

COMPANY OVERVIEW:

HISTORY:

Berger Paints has come a long way since its inception in the year 1923. India’s second largest decorative paint player, Berger Paints is headquartered in Calcutta and services the market through a distribution network comprising of 82 stock points and 12,000+ paint retailers.

One can trace the history of Berger Paints to the 18th century. In 1970, Louis Steinberger moved from Frankfurt to London to sell a ‘Prussian blue’ color, which was made using his own formula. He then changed his name to Lewis Berger and by 1970 Berger was selling 19 different pigments, including black lead, sulphur, sealing wax and mustard.

After the demise of Lewis Berger his sons took over the business. Sherwin-Williams, an American company bought control of the company in the 1900s.

By the 1940s Mr. Hadfield; set up john lay field field's (India) Ltd a small paint company in Calcutta on 17 December,. Towards the end of 1947 British Paints acquired Hadfield's (India) Ltd and thus British Paints (India) Ltd was incorporated in the State of West Bengal.

In 1951, sales offices were opened in Delhi and Mumbai and a depot was started in Guwahati. This resulted in sales rising to Rs.6 million in 1952. In 1969 Berger, Jenson Nicholson Limited, UK bought the British Paints (India) Ltd. This marked the beginning of Lewis Berger’s legacy in India - which the company would later take forward to enviable heights.

Mr. D. Madhukar took over as the Managing Director in the year 1973. Under him the company became the fastest growing company in the paint industry as sales figures reached over Rs. 160 million by 1978.

The 80s and the 90s saw the launch of many new products such as emulsions and distempers. The COLOR BANK tinting system was launched through which the consumer can select from a range of over 5000 colors.

Mr. Subir Bose has been the Managing Director since 2007, under him Berger's team currently runs.

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International operations

Apart from operations in Russia, with a production facility at the Berger manufacturing unit at Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit. Today Berger’s sister company in Bangladesh is the dominant leader with over 65% market share. In keeping with the Company’s dynamic growth plan, Berger has also acquired Bolix SA of Poland, a leading provider of External Insulation Finishing Systems (EIFS) in Eastern Europe. As Berger continues to grow internationally it also continues to be the second largest paint company in India.

Berger is the lone supplier to Nuclear Power Plants with its protective coatings. The automotive sector, be it cars or bikes, is primarily ruled by Berger’s automotive coatings. Luxury cars including Mercedes make use of Berger’s products. Companies like Nokia use Berger’s services as well. Berger has tied up with Becker of Sweden to manufacture coil coatings for steel surfaces.

Berger Paints India Ltd is a leader in paints, offering its customers a variety of

innovative painting solutions, it decorative or industrial.

Whether it is your home or office, your shop or factory, interiors or exteriors, metal, wood, plastic or any other surface - we have a paint solution for it! With an ever-evolving profile and rich history, Berger Paints India Ltd. (an ISO 9001 Company) has come a long way in the highly competitive Indian paints industry.

Today the names "Berger" and "Lewis Berger" are synonymous with color. Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger, who through his marvelous shades, had offered people a chance to transform their homes through the power of imagination. At Berger we believe in taking paints to the level of fine art Enriched by the imagination of Lewis Berger since 1760.

The history of BERGER PAINTS (INDIA) LIMITED is literally as colorful as the business it is in.

BERGER'S performance is anchored today in a wide variety of Decorative and Industrial paints which continue to gain an increasing share of the highly competitive Indian paint market. Being an ISO 9001 company its quality products have attained instant recognition, worldwide, and continues to meet quality requirements that are demanded today even in the domestic market. The Country's second largest decorative paint player, Berger is headquartered in Calcutta and services the market through a distribution network comprising of 82 stock points and 12,000+ paint retailers. Lewis Berger Color Bank brings you new generation paint technology and a brand new way to buy it. Choose from an astounding range of 5000+ shades - pale to deep, bright to subdued - freshly mixed for you, in minute’s right before your eyes. Innovative paint technology at its finest, Lewis Berger Color Bank is based on computerized paint technology. Formulated with the highest quality ingredients and superior eco-friendly

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UV resistant organic colorants, the shades are mixed in a state-of-the-art computerized machine that dispenses colorants with absolute accuracy to base paints. A thorough shake in a gyro-shaker ensures that the colorants are uniformly mixed to get the exact shade of your choice. Lewis Berger Color Bank outlets are located countrywide. Lewis Berger currently has a network of over 2500 such counters. Drop in to the nearest you and experience the new way to shop for paints.

Cosmic from Lewis Berger Color Bank now gives you the opportunity to paint your home, Feng Shui style. Feng Shui is the Chinese practice of living in harmony with nature. The elements of nature, which govern life, can be activated through specific colors. The octagon shown inside indicates the designated position and significance of each elements and colors that activate them.

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COMPANY PROFILE

Establishment year: 1923

Registered Office: Berger House,

129, Park Street,

Kolkata, West Bengal- 700017

Tel: 033-22299724 - 28 033-2249 9754-57

Fax: 033-22499729 033-22499009

Email: consumerfeedback@bergerindia.com

Website: http://www.bergerpaints.com/

Management - Berger Paints

Name Designation Gurbachan Singh Dhingra Vice Chairman

Anil Bhalla Director

Gurcharan Das Director

Subir Bose Managing Director

Gerald Kenneth Adams Director

Pulak Prasad Non Whole time Director

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Employee Information

Number of Employee: - 250

o Workers: - 150

o Staff Members: - 100

Production in the plant of BERGER PAINTS is according to the products demand.

Production per month is around 5400 liters/month and their demand per month is around

3000 liters.

Equipments

The below equipments are mainly used for the dispersion of raw material.

TSD (Twin Shaft Dispersion)

Ballmill

Paymill

Bidmill

Mixer

Slurry

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COMPANY’S FUCTIONING SYSTEM

It depends upon the type & size of the company. It shows how effectively &

efficiently works is being carried out in the company. In Berger the work is divided into

various departments like Costing, Purchase, Sales planning, Designing, Production,

Marketing, Stores, and Packing etc.

First of all, marketing dept. surveys the market. This dept. comes under plant

division. Then it fills the tenders for various jobs according to capacity organizational skills &

technical facilities. In these tenders general design of work & cost estimation are carried out

by costing dept. then the expected, value etc. of the project.

This L.O.I is passed to contract dept. where detail growing of the project is carried

being carried out. Then it is sent back to client for verifications & its approval.

After being approved, the drawings are sent to drawing dept. & planning dept. In

drawing dept. manufacturing drawings of work is being carried out which is forwarded to

planning dept.

In planning dept., the job order indicating the sequence of operation are being

prepared & also they issue purchase requisition to purchase dept. for the procurement of

bought out items. Purchase dept. procured the material and deliver to main store. This is

listed in “Issue slips” after sorting out the issue slips, the main store deliver the items to

concerned dept. for further processing.

After, fabrication, machining, assembly, painting of the job, inspection is carried out

by internal inspector & then clients inspection call is given by contract dept. and then client

comes for the inspection of their jobs. After this, shop delivery memo is released & is then

send to various dept. like shipping dept, Works office, contract department, planning

department, inspection department, etc. Then it is delivered to client by help of packing

department. At the same time, the bills are prepared by contract department & payments

are being cleared. Programming, co-coordinating and controlling production are the

operation of the part of an enterprise, which is responsible for the actual transformation of

materials into finished products.

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PRODUCTION

“Production is anything that can be offered to a market to satisfy a want or a need.”

Production means creation of utilities and utilization of resources such as labor, energy,

materials, equipment, and machinery etc. Production management is the process of

effectively.

Organization structure of PRODUCTION

DEPARTMENT OF BERGER

Chairman and Managing Director

Managing Director

Vice President (Tech. and

Works)

A.G.M (Production and Planning)

Manager

DY Manager ASST manager

S.R. Manager (Works)

ASST. Manager

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TYPE OF PRODUCT: In Decorative Paints, Berger has paints and paint systems for every application -

interior, exterior, every surface, concrete, plaster, metal and wood - as well as special applications like water storage, etc. Berger acrylic brands like Luxol Silk and Rangoli for interiors and Weather coat for exteriors are quality leaders in technology and represent decor statements that redefined the premium category. Luxol Hi-Gloss is the national hallmark for excellence in paint enamel.

In addition to these premium trendsetters, Berger offers paint users other attractive options across the price spectrum in every category - thus enabling buyers to make the choices most appropriate to their budget, always with the Berger assurance of the best quality for the price.

Metal & Wood Paint

Interior Wall Coatings

Exterior Wall Coatings

Clear Coats for Wood

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Metal & Wood Paint

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Interior Wall Coatings

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Exterior Wall Coatings

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Clear Coats for Wood

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Departments of Company

• Sales & Marketing Department

• HR Department

• Manufacturing Department

• Store Department

• Material Department

• Quality Control Department

• Maintenance Department

• Logistics Department

Cycle of Production Functions

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PRODUCTION SYSTEM

• Type of Production – Batch production & Job order production

• Size of the Plant – large scale

• Type of Industry (Field of specialization) - Paint Industries

STORE PROCEDURE

In Berger in store department there three main function

1] Receiving

2] Keeping

3] Issuing.

When the store departments receive the material, the authorized person does visual

inspection of material. Then the quality inspectors do the inspection of raw material as per

standard. If the material is as per standard then company accept the material and keep the

material with company and if the material is not as per the standard then the company

inform the supplier and reject the material. The store managers keep all record of different

type of material in store department.

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Production process

Production process is a process of producing goods and services by combining and

utilizing the services of factors of production. In Berger generally the production process

consists of following stages

1] Production dept receive production Design

2] Receiving Raw material

3] Making and machining billets and blanks

4] Making components as per design

5] Assembling units

6] Separate articles

7] Checking the quality of the parts and assemblies

8] Painting

Types of Production process

In Berger there are three types of production depending on the quantity of articles

produced and the nature of their manufacture the production can be classified into three

categories.

1. Continuous

2. Intermittent

3. Mixed

Berger adopted the process as per the order.

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PLANT LAYOUT

DEFINITION OF LAYOUT

The layout of a factory, workshop or working area means the position of the

departments or shop in the factory and of the machines, work places and storage points in

the working areas, including officers and staff facilities relatives to one another.

DIFFERENT TYPES OF LAYOUT

1] Layout by process or layout by function

2] Layout by product or line production

3] The combination layout of product and process 4] Layout by fixed position or fixed material location

In Berger product layout, process layout and combine layout is used. In Berger as per

order the layout is used. Generally in Gear division product layout used and in division both

process layout and combine layout is used

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PRODUCTION PLANNING AND CONTROL

The production planning and control functions and its interaction with other

functions in Berger are shown below figure.

Production planning And

Control

Production control

-Dispatching -Transportation -Quality control -Expediting -Shipping

Inventory control

-Stores management -Quality control -Purchasing -Receiving -Simplification

PRODUCTION PLANNING -Production plan -Methods -Machines -Time estimates -Scheduling

Product design And

Development

Sales forecast And

Market research

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ORGANISATION STRUCTURE OF QUALITY ASSURANCE DEPARTMENT

OF BERGER

Vic

e p

resi

den

t

Dy. General Manager

Senior Manager

Manufacturing Manager

Quality control manager

H.R. Manager

Material Manager

Stores Manager

Maintenance Manager

Logistic Manager

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Factors Affecting Location

Easy To Approach

By Ship/ By Road

Big Cities are Near (Ahmedabad, Baroda, Surat)

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SMALL SCALE FIRM

DELITE COLOR Pvt. Ltd.

INTRODUCTION OF FIRM

Name of the firm: DELITE COLOR Registered Office and work at: DELITE COLOR Plot no: C-1/301, GIDC Vitthal Udhyognagar -388121. Dist. Anand, Gujarat Form of Organization: Private Ltd. Organization Type of Unit: Small Scale Industry Directors’ Name: Ramjibhai Faldu The DELITE COLOR small scale firm is a part of the PAINT INDUSTRY which is located

in GIDC Gujarat and was established in 1980. Small scale industries are those industries which have an investment below 2 crore in their infrastructure i.e. asset. It is a private Ltd. f irm & having a hierarchical structure of organization, in which they have a CHAIRMAN as mentioned earlier. For that they store the inventory of finished goods in the same place where they have the plant. They have not bought or have taken any other rental land for storing of the finished goods, as demand of it fluctuates.

TTyyppee ooff UUnniitt

Small Scale Industry

Performance of Delite Color Company Production: It produces “paint color” as its main product, which is supplied to

various places for the use of paint infrastructure.

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Customers: Major supply of paint in North Gujarat.

Purvi industry

Jidnesh industry

Raw Material: Shah industry

Welcome industry

Peckme industry

Hind brothers

Types of Machines: Ballbill Machine: It is used for grinding pigment.

Stirver Machine: It is used to grinding pigment.

Beadmill Machine: It is used grind big parts of row material.

Few Things about SMALL SCALE INDUSTRY:-

Registering SSI Unit:

The main purpose of Registration is to maintain statistics and maintain a roll of such

units for the purposes of providing incentives and support services. States have generally

adopted the uniform registration procedures as per the guidelines. It must be noted that

small industries is basically a state subject. States use the same registration scheme for

implementing their own policies. It is possible that some states may have 'State registration

scheme'

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OBJECTIVES

To promote and protect the small scale paint industry in India. To foster unity and co-operation among small scale paint and allied

manufacturers, for their common progress and prosperity. To represent and seek redress from Government for the difficulties

experienced by its Members, by written submission to Government, interaction and representation on relevant Government bodies.

To disseminate among its Members updates in technology and management practices.

To update Members about changes in Government regulations affecting their industry.

Identify problems that may arise, affecting the small scale paint industry and take preemptive measures.

Maintain a library offering members ready access to several national and international publications, but most importantly the standards for paints laid down by the Bureau of Indian

SCOPE

The Indian paint industry has come a long way from the days when paints were

considered a luxury item. Today the awareness level on preventing corrosion through paints is relatively high, a development that should be a huge boost to the paint industry.

This report provides in-depth information and analysis on the US$ 925.0 million (2000-01) worth Indian paint industry. The Indian paints industry offers lucrative scope for stable revenue streams to manufacturers of both decorative and industrial paints. The report stays focused on all such crucial parameters that make India a favorable proposition.

Factors that have been given emphasis include the low per capita consumption of paints (1.0 kilogram), growth in construction sector (it is being offered industry status) and growth in the auto/white goods market respectively spurring demand for decorative and industrial paints. The industry has also witnessed increased activity in the industrial variety of paints with the entry of MNCs in auto, consumer durables etc, which has been The report covers both the segments of decorative and industrial varieties of paints along with elaboration on product sub-segments within these two product segments.

The typical characteristics of the Indian paints industry have been discussed in depth covering the typical features of the Indian industry viz., raw material intensiveness, working capital intensiveness, seasonality of the current global scenario with reference to the paint industry has been covered in the report with special focus on auto-coats market, which is a key growth area in the International market. The current scenario prevailing in the Indian paint industry has been pictured in detail. The share of the organized and unorganized sector has been dealt with in detail, discussing the impact of recent issues and trends (like

pg. 30

excise duty rationalizations, quality consciousness in user segments) on the industry dynamics. The demand-supply scenario existing in the industry has been covered, detailing paint production trends in India, consumption across user segments, the trends in the exports and imports front and factors influencing pricing.

Raw material is a major cost-driver in the paint industry, and thus the report provides comprehensive coverage on duty structure applicable for raw materials, the organized sector has been given an in-depth focus detailing major players, their forte, market shares of majors across product mixes and price categories.

Quality Certification:

To avail the certification of ISO-9000, a unit has to undertake significant costs.

The small-scale industries have been found wanting mainly on account of resource crunch to implement quality systems to obtain this certification. However, as a paradigm shift, SSI must make 'Quality' a way of life.

It has been decided to push the quality up gradation programme in the SSI Sector in a big way. A scheme has been launched to give financial incentive to those SSI units who acquire ISO-9000 certification, by reimbursing 75% of their costs of obtaining certification, subject to a maximum of Rs. 0.75 lacs per unit.

In order to promote modernization and technology up gradation in SSI, the units are assisted in improving the quality of their products.

In quality awareness and learning programmes organized specially for their benefit.

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Opportunity

Less Capital Investment

Promotion & Support by Government

Reservation for Exclusive Manufacture by small scale sector

Project Profiles

Funding - Finance & Subsidies

Machinery Procurement

Raw Material Procurement

Registration

Details for registration of SSI units have been already discussed earlier now we see

few benefits that are being generated with registration.

SSI REGISTRATION

When any firm is registered under SSI we need to understand that this is a

registration made at the District level of state. SSI REGISTRATION is compulsory for every

firm aspiring to get benefits given by the government. Our SUPERNOVA INDUSTRY is a

registered member of SSI UNIT ASSOCIATIONS. Now we will see the benefits that the firm

gets:

(i) They get free stalls at government exhibitions.

(ii) When tenders are being opened Earnest money that needs to pay by firm is

waived at times.

(iii) Also at times security deposits are being waived during the opening up of

tenders.

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NSIC REGISTRATION

It is stands for National small scale industry registrations. Units registered under this

head are nationally registered & benefits derived at that level can be availed.

Also a member of GIDC ASSOCIATION; being a member the biggest benefit that

Supernova Technology derives is that the unit is being continuously informed & upgraded

about the latest happening taking place in the field. These are the few associations &

memberships that our unit is compiling with & is a member of.

Supernova technologies have applied for ISO 9001 which is a requirement for every

firm in this field of engineering production & working.

Facility location

Central part of the state and in vallabh Udhyog nagar,GIDC.

All the infrastructural facil it ies l ike transportation (rail , road), couriers, avai labil ity of water and electricity are to be found in abundance.

Near to metro cit ies and cheaper (dedicated man power) from nearby vil lage available.

Lots of anci l lary units to support the production are also avai lable.

V.V. Nagar, GIDC is comparatively less polluted area.

The area is safe and sound. Medical facil it ies are much better compared to other GIDC.

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LAYOUT

The product that the unit produces requires lots of interaction of

employees of all the departments. Therefore easy accessibi l i t ies, convenient

approach to all the departments is necessary. For that the unit has lots of

doors in their layout.

EPBX system is installed from inception that is intercom faci l it ies are

avai lable on al l the tables . Hence saving of t ime is given priority.

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CONCLUSION The paint industry is expected to grow at 12-13% annually over the next five years. FY12 was

a challenging year for the industry as a whole due to subdued demand across key sectors and rising inflation.

The unorganized sector controls around 35% of the paint market, with the organized sector

accounting for the balance. In the unorganized segment, there are about 2,000 units having small and medium sized paint manufacturing plants. Top organized players include Asian Paints, Kansai Nerolac, Berger Paints and ICI.

The paints sector is raw material intensive, with over 300 raw materials (50% petro-based

derivatives) involved in the manufacturing process. Since most of the raw materials are petroleum based, the industry benefits from softening crude prices.

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BIBLIOGRAPHY

Websites

http://www.indianmirror.com/indian-industries/paint.html

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

http://www.bergerpaints.com/id/103/History-and-Milestones/