SecC Group5 Om Presentation Final

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    Operations Management C5 Indian Institute of Management Kozhikode

    Operations

    Management

    Group 5, Section C

    Akash Deep 127Gowtham Srinivas 142

    Kanika Jain 147

    Kanika Singhania 148

    Rudra Radhakrishnan 173

    Sohini Bera 185

    Tajeshwar Singh 188

    Operational Analysis of

    CAICO

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    Operations Management C5 Indian Institute of Management Kozhikode

    Introduction

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    Operations Management C5 Indian Institute of Management Kozhikode

    EXPORT ITEMS IN QUANTITY 2009-10

    Fr. Shrimp

    19%

    Fr. Fish

    39%

    Others

    12%

    Live Items

    1%

    Chilled Items

    4%

    Dried Items

    7%

    Fr. Squid

    9%Fr. Cuttle Fish

    9%

    Major Export Items include:

    Frozen shrimpDifferent type ofFishesCuttle FishFrozen SquidLive items

    MAJOR EXPORT MARKETS IN QUANTITY 2009-10

    CHINA

    21%

    SOUTH

    EAST ASIA

    22%

    OTHERS

    13%

    MIDDLE

    EAST

    5%

    EUROPEAN

    UNION

    25%

    USA

    5%

    JAPAN

    9%

    Major Export Markets (share in % in US $ ):

    European Union (EU) (29.89% )China 17.80%Japan 13.06%USA 10.01%South East Asia 14.76%Middle East 5.49% Increased exports to Libya, Reunion Islands, Australia,Puertorico, Dominican Republic, Kenya, Tanzania,

    Ukraine, Brazil etc.

    Sea Food Exports from India

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    Operations Management C5 Indian Institute of Management Kozhikode

    Marine product export earning crossed 2billion US dollar in 2010

    Export aggregated to 678436 tonnes Growth of 12.54% in quantity, 16.74% in

    Rupee earning and 11.75% growth in US $

    earning in 2010

    0

    200000

    400000

    600000

    800000

    1000000

    1200000

    Quntity Ton Value Rs.Lakh US $ '0000'

    EXPORTS DURING 2009-10 COMPARED TO 2008-09

    2009-10

    2008-09

    MAJOR PORTWISE EXPORTS ($ MLN.) 2009-10361.21

    333.02 331.46

    199.24188.10

    145.22

    85.43

    211.36

    277.80

    0

    50

    100

    150

    200

    250

    300

    350

    400

    PIPAVA

    V

    KOCHI

    JNP

    CHEN

    NAI

    VIZA

    G

    CALC

    UTT

    A

    TUTICORIN

    MANG

    ALORE/ICD

    OTHER

    S

    19 land/air ports handled marine cargo

    Kochi ranks 2nd

    in term of exports Export from Kochi port showed an

    increase in quantity

    Sea Food Exports from India

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    Operations Management C5 Indian Institute of Management Kozhikode

    CAICO

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    Operations Management C5 Indian Institute of Management Kozhikode

    CAICO- CAnning Industries COchin

    Canning Industries Cochin Ltd floated atThrissur in March 1947 with authorised

    capital of Rs. 5 Lakhs

    In 1960, fishery opened in Trisshur, laterthird plant set up in Mangalore handling

    both sea food and fruits

    Popular brand in Kerala; includes Cannedfruits and vegetables, Canned and frozen Seafoods, Beverages, Jams, Pickles, Sauces etc.

    Need more than one concept to

    capture complexities in measuring

    employment and unemployment

    Population census not the mostappropriate source of data to

    generate estimates of detailed

    aspects

    Requires a more intensive enquiry

    at level of individual respondents

    Approved Supplier to Indian army

    Won many laurels for itself includingthe first Prize for Canned fruits at

    National competition conducted by thefood department, Government of India

    Won 1982 State Award for outstandingexport performance

    Facts: Laurels:

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    Operations Management C5 Indian Institute of Management Kozhikode

    Organizational StructureBoard ofDirectorsBoard ofDirectors

    GeneralManagerGeneral

    Manager

    Manager(caico

    fruits)

    Manager(caico

    fruits)

    Manager(caico

    sea food)

    Manager(caico

    sea food)

    Accounts Dept.Accounts Dept.

    AccountantAccountant AccountantAccountant

    Quality ControlDept.

    Quality ControlDept.

    Lab TechnicianLab Technician Lab TechnicianLab Technician

    ProductionDept.

    ProductionDept.

    SupervisorSupervisor

    Storeemployees

    Storeemployees

    PlantEmployees

    PlantEmployees

    Packingemployees

    Packingemployees

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    Operations Management C5 Indian Institute of Management Kozhikode

    CAICO Cochin

    It is the sea food canningplant located in Kochi

    Strategically located near

    the port

    Primarily packages three

    types of fishes:

    Squid

    Scuttle fish

    Octopus

    Gains orders through

    contracts

    Procures dead fishes from

    suppliers across the country

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    Operations Management C5 Indian Institute of Management Kozhikode

    Operational Process

    Preprocessing

    lab

    Cleansingtub

    Tunnelfreezer

    Glazingtub

    Tunnelfreezer

    Brush Weight Poly pack Hard pack Ante room

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    Operations Management C5 Indian Institute of Management Kozhikode

    Pre

    processing

    lab

    Cleansing

    tubTunnelfreezer

    Glazingtub

    Tunnelfreezer

    Brush WeightPolypack

    Hardpack

    Anteroom

    Sink lines for cleansing of the Squid and Scuttle fish designed in efficient way.

    Each sink line has 6 basins which can be operated at the same time

    Supplied by a common water pipe line

    Put in water mixed with salt, chlorine and tepole for 8 hours to harden

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    Operations Management C5 Indian Institute of Management Kozhikode

    Preprocessing

    lab

    Cleansingtub

    Tunnel

    freezer

    Glazingtub

    Tunnelfreezer

    Brush Weight Poly pack Hard pack Ante room

    The tunnel freezer has two doors

    The freezer has many tray stands which handle the trays containing the sea food

    Typical time for a Tunnel freezer to freeze is 4 hours

    IQF Order

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    Operations Management C5 Indian Institute of Management Kozhikode

    Preprocessing

    lab

    Cleansingtub

    Tunnelfreezer Glazing tub

    Tunnelfreezer

    Brush Weight Poly pack Hard pack Ante room

    The fishes are placed in a large container and mixed with glazing agents

    Glazing agents are food additives providing shiny appearance or protective coating to foods

    Small ice flakes are added to maintain low temperature

    30 minutes process

    After glazing, fishes are frozen

    IQF order

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    Operations Management C5 Indian Institute of Management Kozhikode

    Preprocessing

    lab

    Cleansingtub

    TunnelFreezer

    Glazingtub

    Tunnel

    freezer

    Brush Weight Poly pack Hard pack Ante room

    The Sea food after glazing has to be frozen for another 30 minutes

    After 30 minutes, the contents from the tunnel freezer are removed for furtherpacking

    IQF order

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    Operations Management C5 Indian Institute of Management Kozhikode

    Block Order

    Preprocessing

    lab

    Cleansingtub Weigh asper slot

    Contactfreezer

    Brush Weight Poly pack Hard pack Ante room

    The cleaned sea food from the cleansing tub is arranged in the trays Each tray is further divided into 4 partitions using small steel plates The fish is placed in such a manner that each part contains 2 kg of fish Hence, a tray normally consists of 8 kg of fish Water is poured to the brim of the tray

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    Operations Management C5 Indian Institute of Management Kozhikode

    Block Order

    Preprocessing

    lab

    Cleansingtub

    Weigh asper slot Contactfreezer

    Brush Weight Poly pack Hard pack Ante room

    The factory has 2 contactfreezers

    One contract freezer has acapacity of holding 35 trays

    and the other, 55 trays.

    The trays are kept in theopenings as shown Normal operational time is

    1 hour 45 minutes

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    Operations Management C5 Indian Institute of Management Kozhikode

    Packaging

    Brush Weight Poly pack Hard pack Anteroom

    It is done using brushes to remove small ice flakes on top of the frozen fishes The ice flakes are removed by rapid brushing activity It is necessary to provide the shining look to the fishes once they are packed

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    Operations Management C5 Indian Institute of Management Kozhikode

    Packaging

    Brush Weight Poly pack Hard pack Anteroom

    Manually placed in a tray(approx. 4-5 no's) Done using an electronic weighing machine handled by a single worker Weight of approx. 10 kg is to be maintained Time consuming process as it is a weight checking process

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    Operations Management C5 Indian Institute of Management Kozhikode

    Packaging

    Brush Weight Poly pack Hard pack Anteroom

    The weighed fish are transferred into a case with a polythene cover There are two stations i.e. total 4 workers for this section After transferring into the cases, the cases are hard packed by the worker using tape

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    Operations Management C5 Indian Institute of Management Kozhikode

    Packaging

    Brush Weight Poly pack Hard pack Ante room

    Ante room is the place tokeep the immediate

    inventory.

    Just in front of the coldstorage room

    The packaged cases arekept in the ante room and

    then transferred into the

    cold storage room

    The storage room ismaintained at a

    temperature of -4O C

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    Operations Management C5 Indian Institute of Management Kozhikode

    Other components of

    Operations

    Strategy

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    Operations Management C5 Indian Institute of Management Kozhikode

    Water Purifier:

    RO system put up to purifywater used in processing

    Purified water is stored inan underground tankbefore transferring to the

    plant to

    Only pure water is used inall operations to maintainhygiene and quality

    Water Purifier:

    RO system put up to purifywater used in processing

    Purified water is stored inan underground tankbefore transferring to the

    plant to

    Only pure water is used inall operations to maintainhygiene and quality

    Cooling towers:

    Cooling towers to coolthe refrigerant used in thecompressor of the freezer

    Works on the principle ofheat exchange betweenwater and refrigerant

    Cooling towers:

    Cooling towers to coolthe refrigerant used in thecompressor of the freezer

    Works on the principle ofheat exchange betweenwater and refrigerant

    Machine Room:

    Machine room where allthe heavy machinery usedin the plant like machinesfor freezers, cold storage,cooling towers is installed

    Forms the control centerof all the machines

    Machine Room:

    Machine room where allthe heavy machinery usedin the plant like machinesfor freezers, cold storage,cooling towers is installed

    Forms the control centerof all the machines

    Auxiliary components

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    Operations Management C5 Indian Institute of Management Kozhikode

    Employee care

    Special emphasis is given on hygiene ofworkers

    Separate changing room for workers

    Each worker is expected to wear Caicosuniform which has been disinfected and

    sterilized

    The workers are asked to dip their feet inantiseptic germ killing solutions beforestepping into the cleaning rooms

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    Operations Management C5 Indian Institute of Management Kozhikode

    Quality Control

    Internal checks: Samples tested in lab to check for possibleimpurities like heavy metals and microbes

    Grading is done based on size and quality Different grades like U1(best),1/2,2/4 etc used Temperature testing of storage rooms and freezers done every hour

    Quality certificate license is stamped on each carton

    External checks: By govt. agencies like MPEDA(Marine Products

    Export Development Authority) and EIC(Export Inspection Council )

    MPEDA: Specify standards for marine trade and has facilities to testseafood samples for heavy metals, pesticides and antibiotic residues

    using advanced technology.

    EIC: Conducts inspection every 6 months to ensure in-process qualityprocedures are followed at each stage. Gives certificate of export

    worthiness

    Exports toEuropean Union therefore very high quality is maintained

    Quality checks at different stages ofprocessing

    Both internal and external quality checks

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    Operations Management C5 Indian Institute of Management Kozhikode

    Waging System

    Minimum wages set by Kerala Govt. is approximately Rs.160

    Workers

    LocalMale (4)

    LocalFemale

    (4)

    Non LocalFemale

    (16)

    Non LocalMale (20)

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    Operations Management C5 Indian Institute of Management Kozhikode

    Analysis

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    Operations Management C5 Indian Institute of Management Kozhikode

    Analysis

    High volume Low variety

    Volume varietyanalysis

    Always meet demandCapacity strategy