A

PROJECT REPORT

ON

“WORK STUDY OF LIQUID PHARMA PRODUCT

(SYRUP AND SUSPENSION)”

FOR

NIRAMAY PHARMA PVT. LTD.

SUBMITTED TO UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE

MASTERS IN BUSINESS ADMINISTRATION (M.B.A)

SUBMITTED BY

PANKAJ S. RANE

(BATCH - 2006-08)

BANSILAL RAMNATH AGRAWAL CHARITABLE TRUST

VISHWAKARMA INSTITUTE OF MANAGEMENT,

KONDHAVA PUNE- 411014.

1
 INDEX

Page
Sr.No. Topic
no.

1. EXECUTIVE SUMMARY 1

2. OBJECTIVES 2

3. COMPANY PROFILE 3

4. THEORETICAL BACKGROUND 14

5. DATA COLLECTION 25

6. ANALYSIS 26

7. FINDINGS 55

8. SUGGESTION 56

9. BIBLIOGRAPHY 57

10. ANNEXURE 58

2
 EXCECUTIVE SUMMARY

Niramay Pharma Pvt. Ltd is small scale well known Pharmaceutical Company in Nasik.

Project conducted for small scale company. The reason for which is that they are

willing to go through a change, to work efficiently and effectively. This will also

improve their style of working and support them in achieving their goals.

This project is titled as “WORK STUDY OF LIQUID PHARMA PRODUCT (SYRUP

AND SUSPENSION)” and tries to find out how to increase productivity by decreasing

the waste and also analyze and find out areas of improvement in layout.

Location: H-115, Additional MIDC,

Ambad, Nasik-422010.

Duration: The period for training was from 1st June 2007 to 31st July 2007

Work study, formerly known as Time and Motion study, fulfills these two requirements

through its two complimentary specializations of Method study and Work

Measurement.

Method study aims to determine the most effective method of performing a job, the

most logical layout of manufacturing facilities, the smooth flow of men and material

throughout the organization and the right placement of inspection stages to enable

processing of a job through the smallest possible time and at the least possible cost.

Work measurement on the other hand helps to determine the time required by the

operator to complete a specified task for the defined method at the defined space of

performance.

Different officials working in the production department have provided very important

data in this project. The basic method of data collection is observation of manufacturing

processes. Also data collect from the Batch Manufacturing Record, Master Formulation

Record, and Standard Operating Procedure.

3
 OBJECTIVES

Primary objective:

 Work study of liquid product (Syrup and Suspension)

Secondary objective

 To increase productivity by decreasing the waste.

 To analyze and find out areas of improvement in layout.

4
 COMPANY PROFILE

ABOUT COMPANY:

Niramay Pharma pvt. Ltd. Is fastest growing Pharmaceutical company of Aditi Group

which is already working in non-betalactom product sector to give relief and

satisfaction to patient and doctors

Niramay Pharma pvt. Ltd. Established at the eve of millennium on 17th April 2000,

with a view to serve the mankind by producing number of quality products in various

therapeutic segments nationwide and worldwide and also to avail the ultra modern, well

equipped, state of the art manufacturing units facilities as per WHO cGMP as well as

international standard compliances.

Our main motto is ‘Sarve Santu Niramaya’. NPPL is the company recommended for

WHO GMP certification as well as ISO certification. NPPL have its huge capacity of

production of liquid which is 30 lacks bottles per month, 4.5 crore tablets per month

and 1.5 crore capsules per month

5
Aditi Group:

Aditi Group is related to pharmaceutical, chemical, recovery services, electronic media,

software development and solution, import and export of raw material, packing

material machineries and commodity market.

Aditi group is also related to huge field of infrastructure and construction and banking

and recovery service sector.

Aditi Group

Aditi Recovery Services Krishna Infrastructure & Kirti Import

Pvt. Ltd Developer Pvt.Ltd Export & Trading
Pvt. Ltd

Niramay Pharma Aryan InfoTech &

Pvt. Ltd Solution Pvt. Ltd

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Niramay Pharma Pvt. Ltd. Established at the eve of millennium on 17th April 2000,

with a view to serve the mankind by producing number of quality products in various

therapeutic segments nationwide and worldwide and also to avail the ultra modern, well

equipped, state of the art manufacturing units facilities as per WHO cGMP as well as

international standard compliances.

Unit 1: Facility for non beta - Lactum products

Unit 2: Facility for beta - lactum products with tablet, capsule, liquid and parenteral

dosage forms.

Units 3: Facility for soft gelatin capsules.

The nonbeta lactum facility started since 27th January 2002 as per WHO cGMP as well

as International standards compliances along with total quality management system.

The company has developed leading brands in pediatrics and gyanac segments in entire

Maharashtra.

We are one of the fast growing manufacturing facilities for job work to top most

renowned multinational companies.

The unit 2 & 3 are under development. We have crossed above 10 million turnover

within a period of one year.

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Quality mission:

o We will ensure u that interms of quality, the customer is our focus. We will

define quality as “satisfying our customer by consistently achieving and

continuously improving upon agreed requirement.

o We will ensure that all our customer receive product & service which are safe,

effective and of proven quality.

o Quality will be the supreme importance in Niramay Pharma Pvt. Ltd and all

employees at different cadre will be committed to it.

o We will ensure the adoption of wider view of quality and will not be satisfied

by mere compliance with specification and local statutory requirement. Our goal

is total satisfaction of our customer.

o We will apply the principle of quality assurance to all the activities and system

within the organization right from product design and development,

procurement and commercial production, distribution and marketing with

continuous evaluation, review and improvement .This should generate customer

confidence in quality of our product and service.

o We will ensure that every one in all aspect of our business is committed to

achieving quality requirement by purposeful communication, training and

practices.

o With effective communication, we will make our employees understand that in

the increasingly competitive on our reputation for quality and commitment to

our customer.

o We will ensure that our product will be ecofriendly and will be manufactured

considering total safety of the environment.

8
Vision:

Emerged as a dedicated, quality committed company. We declare that the product

manufactured at our facility, should be of the highest ethical standards and process with

quality.

Customer Focus:

We are deeply committed and constantly focusing towards the customer satisfactions,

as we take genuine interest in their welfare.

Performance:

We strive for continuous improvement in our performance "What we commit, that we

do in the best competitive, complete, efficient and most timely way possible"

Business Overview:

Niramay Pharma Pvt. Ltd. established at the eve of millennium on 17th April 2000,

Niramay Pharma Pvt.Ltd. Is fastest growing Pharmaceutical company of Aditi Group

which is already working in non-betalactom product sector to give relief and

satisfaction to patient and doctors

Niramay Pharma Pvt. Ltd. Projected its own unit in Jalgaon district for beta lactom

sector with the help of f-9 machineries.

It is also goes to its export and institutional marketing sector

Niramay Pharma is having over 24 own brands

NPPL is the company recommended for WHO GMP certification as well as ISO

certification.

NPPL have its huge capacity of production of liquid which is 30 lack bottles per month,

4.5 crore tablet per month and 1.5 crore capsule per month

The unit 2 & 3 are under development. We have crossed above 10 million turnover

within a period of one year.

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Real Strength of NPPL:

The key strength of Niramay Pharma Pvt. Ltd. lies in the following areas, a strong hold

and vast experience in these areas provides great strength to Niramay Pharma pvt. Ltd.:

 Organization

 Sales marketing

 Distribution network

 World class manufacturing

 Financially strong

 People

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PRODUCT PROFILE:

Niramay Pharma Pvt. Ltd. provide a lot of variety of products for the medicinal usages.

Some of them are described below.

Domestic Formulations Profile:

 G I care:

GI care ensures normal digestion and maximum assimilation of food and forms

a sound foundation to the well beings of all the different systems of the body.

 Nutritional care:

Nutrition is a science that examines the relationship between diet and health.

 Cardiology:

Cardiology is the branch of medicine pertaining to the heart.

 Antimicrobial:

An antimicrobial is a substance that kills or inhibits the growth of microbes

such as bacteria (antibacterial activity), fungi (antifungal activity), viruses

(antiviral activity), or parasites (anti-parasitic activity).

 Antibiotics:

Antibiotics are generally used to treat bacterial infections.

 Anti malarial:

Antimalarial drugs are designed to prevent or cure malaria.

 Pediatric care:

Pediatrics (also spelled paediatrics) is the branch of medicine that deals with the

medical care of infants, children, and adolescents (from newborn to age 14-21).

 Anthalmentics:

An agent that destroys or causes the expulsion of parasitic intestinal worms.

 Ophthalmology:

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 Ophthalmology is the branch of medicine which deals with the diseases and

surgery of the visual pathways, including the eye, brain, and areas surrounding

the eye, such as the lachrymal system and eyelids.

 Pain management:

Pain management (also called pain medicine) is the discipline concerned with

the relief of pain. (analgesics such as narcotics or NSAIDs and pain modifiers

such as tricyclic antidepressants or anticonvulsants).

NPPL Products:

Niramay Pharma Pvt. Ltd. provides a lot of variety of Tablets for the medicinal usages.

Some of them are described below.

 Catal Tab 500

Contents: calcium carbonate IP,

L-lysine Hydrochloride USP,

Magnesium hydroxide IP.

 Roxitab Tab

Contents: Roxithromycine BP

 Daltal Tab

Contents: Diclofenac sodium IP

 Mebetal Tab

Contents: Mebendazole USP

 Levamisol Tab

Contents: Levamisol Hydrochloride USP

 Cyco-M Tab

Contents: Mefenamic acid IP

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 Diclomine Hydrochloride

 Aries Tab

Contents: Tinidazole IP

Diloximine furoate IP

Activated methyl polysilaome IP

 Quinine Sulphate Tab

Contents: Quinine Sulphate BP

 Aspirin Tab

Contents: Aspirin IP

 Domtal DT Tab

Contents: Domperidone BP

 Oflatal 200 Tab

Contents: ofloxacin USP

 Fides Tab

Contents: Cetirizine Dihidrochloride BP

Phenylpropanolamine Hydrochloride BP

Paracetamol IP

 Niram Tab

Contents: Ramipril BP

Niramay Pharma Pvt. Ltd. provides a lot of variety of syrup for the medicinal usages.

Some of them are described below.

 Dean-D Syrup

Contents: Dextromethorphan Hydro bromide IP

Phenylpropanolamine Hydrochloride BP

13
 Chlorpheniramine maleate IP

 Fides Syrup

Contents: Cetirizine Dihidrochloride BP

Phenylpropanolamine Hydrochloride BP

Paracetamol IP

 Emerald syrup

Contents: Ferric Ammonium Chloride IP

Cynocobalomine IP

 Asthtal Syrup

Contents: Solbutamol Sulphate IP

Bromhexine Hydrochloride IP

Phenylepherine Hydrochloride

Niramay Pharma Pvt. Ltd. provides a some of variety of Suspension for the medicinal

usages. Some of them are described below.

 Logan Suspension

Contents: Metronidazole Benzoate IP

Norfloxacin

 Nginies Suspension

Contents: Nimesulide

 Fides Suspension

Contents: Cetirizine Dihidrochloride BP

Phenylpropanolamine Hydrochloride BP

Paracetamol IP

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  Caldutal Suspension

Contents: Paracetamol IP

Phenylpropanolamine Hydrochloride BP

Chlorpheniramine Maleate

The table below explains the major products and their leading brands of the

Niramay Pharma Pvt. Ltd:

Sr. Leading Brands

Therapeutic segments
no
1 Anti – infective Earies, Nginies T,

2 Antibiotics Oflatal, Alien, Spartal, Roxatab,

3 Gastro – Intestinal Domatal DT, Catal 500, Mebetal, Logan

4 Anti – Malarial Quinine Sulphate

5 Cardiovascular Niram,

6 Nutritional Gleevit,

Dean D, Fides Tab, Fides Syrup/Susp., Q.Cor,

7 Cough and cold
Cetalal, Coldatal,

Nginies, Daltal-P, Aspirin, Paracetamol,

8 Pain Management
Analgin

9 Anthalmentics Mebetal, Albendazole,

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 THEORETICAL BACKGROUND

Work Study:

To increase productivity, two important function of production management are:

Installation of the most effective method of performing the operation and the control of

resources –mainly plant and labor required in carrying out the operation.

Work study, formerly known as Time and Motion study, fulfills these two requirements

through its two complementary specializations of Method study and Work

Measurement.

Method study aims to determine the most effective method of performing a job , the

most logical layout of manufacturing facilities, the smooth flow of men and material

throughout the organization and the right placement of inspection stages to enable

processing of a job through the smallest possible time and at the least possible cost.

Work Measurement on the other hand helps to determine the time required by the

operator to complete a specified task for the defined method at the defined space of

performance.

Method study and Work measurement though they are considered as two separate

techniques, yet they are closely related and complement each other. Needless to

mention that the time for a job can be assessed accurately only after standardizing the

method which implies that method study should precede work measurement

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Flow chart of work study:

WORK STUDY

Method Study Work Measurement

Critical analysis of existing

Measurement of work to
job to develop easier and establish allowed time for a job
effective method for the defined method

Define, install and maintain

improved method

To achieve improved To achieve improved planning,

processes and procedures, better improved manning, basis for
utilization of resources, labor cost control, improved
improved morale etc. methods.

Resulting in higher productivity

FLOW CHART OF WORK STUDY

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Method Study

According to British Standards Institute (BS-3138):

“Method study is the systematic recording and critical examination of existing and

proposed ways of doing work, as a means of developing and applying easier and more

effective methods and reducing costs.”

The definition suggests the examination of existing as well as proposed production

methods. Critical examination when conducted on existing methods helps the firm to

identify unnecessary cost associated with the existing job. Critical examination of

proposed production methods, on other hand, helps the organization to prevent the

possibility of introduction of unnecessary cost in new jobs.

Method study in general analyses the following aspect:

(i) Manufacturing operation and their sequences.

(ii) Machines

(iii) Workmen

(iv) Materials

(v) Work bench layout.

(vi) Layout of physical facilities.

(vii) Movement of men and materials.

(viii) Materials handling.

Method study can be successfully used in many areas of production management,

namely:

18
(i) To evolve creatively and innovatively improvement in processes and

procedures.

(ii) To determine correct sequences of operation and avoid duplication (if any).

(iii) To improve layout, smoothen materials flow, reduce backtracking and avoid

obstacles.

(iv) To reduced unoccupied time of the operator and thereby obtain effective use

of human effort.

(v) To improve utilization of the equipment and thereby reduce manufacturing

cycle time per piece.

(vi) To select materials of right specification, cut down process waste reduce

defectives, and thereby reduce raw material consumption per unit of

production.

(vii) To fix inspection stages to reduce defectives and optimize quality assurance

costs.

(viii) To achieve economy in human effort and reduction of unnecessary fatigue.

(ix) To develop a better physical working environment.

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BASIC PROCEDURE OF METHOD STUDY

Method study is an organized approach and its investigation rests on the following six

basic steps outlined in the block diagram

Select the job

to be analyzed

Record facts relating to

the existing method

Examine facts critically

but impartially

Purpose Place Sequence Person Means

Develop
Alternative to the
existing method

Install the new

method

Maintain the
New method

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 1. Select : the work to be analyzed

2. Records : all facts relating to the existing method.

3. Examine : the recorded facts critically but impartially.

4. Develop : the most economical method commensurate with plant

requirement

5. Install : the new method as standard practice.

6. Maintain : the new method.

1. Selection of the job

Selection of the job to be studied for methods improvement by the method study

practitioner is a managerial responsibility and it (selection) may be based on economic,

technical or human consideration. Economic consideration justifies selection based on

economic worth (i.e. money saving potential ) of the job. Technical consideration

identifies jobs which require studies to overcome manufacturing difficulties (excessive

rejection, relaxation in prefixed performance standards, inability of the shop to stick to

specified machining parameter such as speed, feeds, depth of cut etc., inconsistent

quality etc.). Human consideration in job selection in usually given weightage while

introducing method study practices for the first time.

2. Recording of facts

1. Systematic recording is the most crucial step in method improvement. Since

recording by long hand (or by descriptive method) has its limitation. Repetitive short

cycle operations which involve quick hand / feet motion (i.e. microscopic motions) may

be studied with micro motion study.

2. Critical Examination:

21
Critical examination aims to analyze the facts critically and thereby give rise to

alternatives which form the basis of selection and development of easier and effective

methods.

Critical examination is conducted through a systematic and methodical questioning

process. The questioning process is considered under five major heads, namely the

1. Purpose

2. The place

3. The Sequence

4. The Person

5. The means

The above five aspects in critical examination are referred to as five governing

considerations.

3. Development and Selection

Development and Selection stage concern short listing of ideas generated at the critical

examination stage, testing each short listed idea for its technical and economic

feasibility, and making selection among the alternatives wherever choice exist. To

develop ideas and to ascertain their technical and economic feasibility, the method

study practitioner needs to solicit the co-operation of personnel from different

departments of the company. Various techniques available for the development and

selection purposes are: Cost benefit analysis, Break even analysis, Investment analysis

and Critical path analysis.

4. Installation

Installation ( or Implementation) of the proposed method involves preparation of

project report on recommendations, making oral presentations to the top management,

securing approval of the decision maker, assisting line management during

22
implementation, arranging training of workmen, and getting jobs ( operations ) retimed

after implementations.

5. Maintenance

Maintenance phase is the follow up phase after the implementation which serves as a

monitoring and control mechanism. It helps to ensure that the revised methods are set

into concrete and workmen do not revert back to old methods. It also provides an

opportunity to the practitioner to assess the effectiveness of the approach followed by

him and make changes in the methodology ( if required ).

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Work Measurement

Work measurement is the application of a set of techniques intended to establish

quantum of work to be done by an operator in a given time (standards of production) of

a specified task, under specified conditions and at the defined level of performance.

Work measurement in other words provides a scientific method of fixing standards of

production (or alternatively standard time for a job).

Uses of Work measurement data

A no. of areas can be spelled out where work measurement data is useful. Some of

them are:

1. Manning:

Correct manpower requirements for different tasks in a plant can be very accurately

determined by work measurement data. The data enables the management to determine

future requirements of equipments and machines. The data also enables the

management to determine the no. of machines that can be conveniently manned by a

single operator.

2. Planning:

The success of an enterprise depends upon its ability to make reliable delivery promises

which to a greater degree depend on its effectiveness of planning and scheduling. Work

measurement data on operation timings gives an idea as to when a particular job could

be started and when it would be over.

3. Estimating production costs:

24
The success or failure of an enterprise is depends on accuracy with which it is able to

project its cost and correctly price its product. Over estimation may make the firm non-

competitive and under estimation can make it lose financially.

For correct estimation of labor cost, correct knowledge of manufacturing time is

necessary. Work measurement provides the management with accurate data on

manufacturing time.

4. Cost reduction and Cost control:

Work measurement data can be used as an effective tool for labor and cost control. The

very presences of fair standards make the employees increase production. Work

measurement data also gives valuable information on lost time which is of various

forms such as unoccupied time, hunting time, up-productive time, job splitting time etc.

5. Improved methods:

Work measurement is very useful tool to figure out better methods. Work measurement

makes this possible by analyzing the operations in their tiny detail. They point out

wasted motions e.g. unnecessary walking and reaching. They also identify elements

which consume excessive time, a vital information for the method analyst.

6. Comparing alternative methods:

Work measurement data also aids in making a selection among the alternatives. As

sometimes it happens, method study practitioner ends up with two or more alternatives

which appear to be equally advantageous. The method study practitioner then is faced

with the problem of comparing these alternatives so as to make a judicious selection of

the best method.

25
7. Sub standard workers:

Work measurement aims at setting standards of production per hour or per shift. Work

measurement data helps to identify sub standard workers so that they can be

 Treated if sick.

 Trained if not trained properly.

 Transfer to some lighter work if old.

 Reprimanded if slackers.

26
 DATA COLLECTION

Data collection for the work study are collect from the,

 Observation of manufacturing processes.

And also collect from,

 Batch Manufacturing Records

 Master Formulation Records

 Standard Operating Procedure

 Web sites

Selection of the products on the basis of the over all productivity from the raw

materials used and the percentage of the rejection of the final product and rejection due

to inferior quality of the packing materials:

Different products available were:

 Dean D

 Emrald

 Fides

 Caldatal

 Logan

 Asthtal

27
The percentage rejection of different products on the basis of is shown in the

graph below:

Total raw Used raw

Sr. Percentage
Product material material
no Loss
(liters) (liters)
1 Dean D 750 660 12 (90 liters)
2 Fides 750 675 10 (75 liters)
3 Emrald 500 460 8 (40 liters)
4 Caldatal 750 698 7 (52 liters)
5 Logan 750 720 4 (30 liters)
6 Asthatal 500 480 4 (20 liters)

Percentage loss of raw material

14
12
percentage loss

10
8
6
4
2
0
Dean D Fides Emrald Caldatal Logan Asthatal
Product

The percentage loss and rejection of raw material from taken total raw material and
used raw material is given in above chart
In the above observation, percentage loss and rejection of raw material is in

manufacturing of the DEAN D syrup is maximum which is 12% is more loss as

compare to other product are observed.

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Dean D syrup is taken for the work study in which maximum loss of raw material

DEAN – D (for dry cough)

Each 100 ml contain:

Dextromethorphan Hydro bromide IP 5mg

Phenylpropanolamine hydrochloride BP 12.5mg

Chlorpheniramine maleate IP 2mg

In flavoured mentholated base q.s.

Color caramel

Warning: “To be sold by retail on the prescription of registered Medical Practitioner

only”.

Caution: It is dangerous to take this preparation except under medical supervision

Dosage: Adult- 2 teaspoonful thrice daily.

Children- (6 – 12 yrs) 1 teaspoonful thrice daily

(2 – 6 yrs) ¼ - ½ teaspoonful thrice daily

29
The rejection of the final product was also due to the breakage of the packing materials

during the packing process.

The rejection because of the breakage of packing is shown in the graph below.

Rejection of the final products on the basis of the damaged or poor quality of the

primary packing material i.e. Bottles:

Sr. Total packing Used packing Percentage

Product
no material material Loss

1 Dean D 7100 6798 4.25 (302)

2 Fides 7100 6852 3.50 (248)
3 Emrald 4725 4621 2.2 (104)
4 Caldatal 7100 6924 2.5 (176)
5 Logan 7100 6993 1.5 (107)

6 Asthatal 4725 4655 1.5 (70)

Percentage loss of bottles

350
300
250
200
150
100
50
0
Dean D Fides Emrald Caldatal Logan Asthatal
series1 4.25 3.5 2.2 2.5 1.5 1.5
series2 302 248 104 176 107 70

In the graph above series 1 shows the percentage loss of bottles and series 2 represents

the total number bottles rejected from the total packing materials as shown in the table

above.

30
The table below shows the rejection of the Aluminum silver color caps during the

inspection and operations process:

Sr. Total no. of Used no. of Percentage

Product
no Aluminum caps Aluminum caps loss

1 Dean D 7100 6873 3.2 (227)

2 Fides 7100 6937 2.3 (163)

3 Emrald 4725 4630 2.0 (95)

4 Caldatal 7100 6951 2.1 (149)

5 Logan 7100 6998 1.4 (102)

6 Asthatal 4725 4673 1.1 (52)

Percentage rejection of caps

250

200

150

100

50

0
Dean D Fides Emrald Caldatal Logan Asthatal
series1 3.2 2.3 2 2.1 1.4 1.1
series2 227 163 95 149 102 52

In the graph above series 1 shows the percentage rejection of caps and series 2

represents the total number caps rejected from the total packing materials during the

inspection and operations process as shown in the table above.

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PRODUCTION PROCESS OF THE SELECTED PRODUCTS AND TIME

CALCULATION FOR THE DIFFERENT PROCESS:

Production is defined as the “manufacturing of goods and services” and planning is

defined as “the series of related and coordinated activities- materials control, process

planning, scheduling, etc. designed to systematize in advance the manufacturing efforts.

In the production process the inputs are converted into the output, the conversion can

be done by various means and it varies from firm to firm and from product to product.

The input to the production system are raw materials, parts, consumables, energy,

engineering details, production schedules, information technology, capital or

management and output are the produced goods, transported goods, delivered

messages, cured patients, serviced customer.

The basic conversion process can be shown as below:

CONVERSIO
INPUT N OUTPUT

PROCESS

CONVERSION PROCESS

32
For example:

 In a manufacturing organization like steel plant, input are material like iron ore,

coke, lime stone dolomite, etc., labor, machine, capital and outputs are steel

sections like channels, rods, bars, sheets, etc.

 In service organization like banks, inputs are customers and outputs are serviced

customers.

 In a hospital inputs are patients and outputs are cured patients.

 In a public transport, inputs are commuters and outputs are serviced (or

transported) commuters.

 In post and telegraph office, inputs are letters or messages and outputs are

delivered letters/messages

How well-organized a firm is at undertaking this transformation process will determine

its success. This is known as the productive efficiency of a firm and it will want to be

as efficient as possible in transforming its inputs into outputs (i.e. using the minimum

number of inputs as possible to achieve a set amount of output). This will reduce the

cost per unit of production and allow the firm to sell at a lower price.

Ultimately, the objective of the production process is to create goods and services that

meet the needs and wants of customers. The needs and wants of customers will be met

if a business can produce the correct number of products, in the shortest possible time,

to the best quality and all at a competitive price.

33
The production process for the selected product in the study is explained in detail

below.

The product selected for the study was “DEAN D” and the process is as under.

STEP 1:

i. Raw material requisition.

ii. Weighing.

iii. Check the pH of purified water taken for manufacturing of batch.

The time consumed for each of the process is shown in the table below:

Sr. no Process Time (hours)

I Raw material requisition 4
Ii Weighing, cutting and sieving 6
Iii Check the pH of purified water 0.15

STEP 2:

The preparation of Dean D syrup. It contains the following steps.

i. In jacketed stainless steel tank add purified water and heat to boil

ii. Preparation of sugar syrup:

In the stainless steel vessel take purified water an dissolve sodium Benzoate

and add to the step i

iii. Add slowly under stirring sugar continue stirring to dissolve completely

iv. filtration of sugar syrup:

Filter the syrup through the filter press using pp pads in s s tanks.

v. Addition of active ingredient:

vi. Dissolve the coloring and flavoring agent in to purified water and add to the

Step iv

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vii. Check the volume. If necessary add purified water to adjust volume to 350 ltrs.

viii. Continuing stirring for 30 min. stop stirring

ix. Check pH

Time consumed for the preparation of Dean D syrup.

Sr. no Process Time (hours)

i Purified water heat to boil 0.30

ii & iii Preparation of sugar syrup 0.20

iv Filtration of sugar syrup 1.5

v Addition of active ingredient 3.0

vi Dissolve and add coloring and flavoring agent 0.15

vii Check the volume. 0.15

viii Continuing stirring for 30 min. 0.30

ix Check Ph 0.15

STEP 3

Filtration stage:

In the filtration stage Filter the semi finished product through the filter press using

pp pads in s. s. tanks. During

i. Set the filter press using filter pads

ii. Check the clarity initially. Intermittently and finally.

35
Time consumed in the filtration stage for the filtration of semi finished Product:

Sr. no Process Time (hours)

i Set the filter press using filter pads. 0.20

Check the clarity initially. Intermittently

ii 1.45
and finally.

At the end of this process the filtrate is prepared and it comes out to be 270 liters.

STEP 4:

Washing of packing material, i.e. amber pet/glass bottles.

The process is explained below:

Bottles washing, this process includes the following process (7100 nos.).

The time consumed the washing of packing material i.e. amber pet/glass bottles is

shown in the table below.

Sr. no Process Time (hrs.)

1 Checking clarity of purifies water 0.15

Transfer of bottles to the bottle washing

2 0.10
machine for washing

3 Washing of bottles with purified water 1.35

5 Transfer of washed bottles to the tray 0.15

6 Transfer bottles for filling 0.10

The numbers of bottles rejected during the washing of packaging materials i.e. bottles

are 52.

36
STEP 5:

Makeup the volume:

Sr. no Process (operations) Time (hrs.)

1 Transfer of semi finished (bulk) into previously 0.15

cleaned s. s vessel

2 Make up of volume by using purified water. 0.10

3 Thorough mixing 0.15

4 Checking (adjust if necessary) of the pH of the 0.30

syrup

5 Add remaining quantity of purified water and mix 0.10

thoroughly

6 Checking of the final pH 0.15

STEP 6:

Bulk transfer to Automatic Volumetric filling and cap sealing machine.

Sr. no Process (operations) Time (hrs.)

i. Checking of the pre operation integrity of 0.10

machine

ii Bulk transfer to Automatic Volumetric filling and 0.30

cap sealing machine.

37
STEP 7:

Filling stage:

Automatic Volumetric and cap sealing machine setting and operation

And time consumed by this step during filling bottles is below

Sr. no Process Time (hrs.)

1 Automatic Volumetric filling and cap 0.10

sealing machine setting

2 Filling of bottles 2.45

STEP 8

Sealing stage:

Sr. no Process Time (hrs.)

1 Setting of sealing machine 0.15

2 Loading of sealed bottles on turn table 0.20

3 Checking of the sealing of first 20 bottles 0.10

4 Sealing operation 0.10

5 Transfer the sealed bottles trays through 0.5

Pass box

6 Labeling of bottles 0.15

7 Transfer to QC department 0.10

STEP 9:

Packaging stage:

Sealed bottles are pack in to a carton box (100 x 100ml)

38
Rejection of bottles in different steps:

Sr. no Process Items rejected

1 Quality check 52

2 During transfer to bottle washing machine 30

3 During transfer to bottle to the tray 20

4 Washing 76

5 Machine setting for filling operation 35

6 Volume checking 26

7 Filling and sealing 44

8 During labeling 19

TOTAL 302

Reasons for rejection of bottles at different steps:

1. Improper packing of the bottles in carton

2. Unskilled labor

3. Improper materials handling because of improper materials handling

equipments

4. Improper machine setting

39
LAYOUT OF THE EXISTING MANUFACTURING PROCESS

PLANT LAYOUT

Definition

Plant layout is the disposition of the various facilities and services of the plant within

the area of the site selected previously. The work of plant layout begins with the

location of the work centers.

According to Riggs, “the overall objective of Plant layout is to design a physical

Arrangement that most economically meets the required output – quantity and quality.”

According to J. L. Zundi, “Plant layout ideally involves allocation of space and

arrangement of equipment in such a manner that overall operating costs are

minimized.

Essentials:

An efficient Plant layout is one that can be instrumental in achieving the following

Objectives:

a) Proper and efficient utilization of available floor space

b) To ensure that work proceeds from one point to another point without any delay

c) Provide enough production capacity.

d) Reduce material handling costs

e) Reduce hazards to personnel

f) Utilize labor efficiently

g) Increase employee morale

h) Reduce accidents

i) Provide for volume and product flexibility

j) Provide ease of supervision and control

k) Provide for employee safety and health

40
l) Allow ease of maintenance

m) Allow high machine or equipment utilization

n) Improve productivity

TYPES OF LAYOUT

As discussed so far the Plant layout facilitates the arrangement of machines, equipment

and other physical facilities in a planned manner within the factory premises. An

entrepreneur must possess an expertise to lay down a proper layout for new or existing

plants. It differs from Plant to Plant, from location to location and from industry to

industry. But the basic principles governing Plant layout are more or less same.

As far as small business is concerned, it requires a smaller area or space and can

be located in any kind of building as long as the space is available and it is convenient.

Plant layout for Small Scale business is closely linked with the factory building and

built up area.

From the point of view of Plant layout, we can classify small business or unit into three

categories:

1. Manufacturing units

2. Traders

3. Service Establishments

1. Manufacturing units

In case of manufacturing unit, Plant layout may be of four types:

(a) Product or line layout

(b) Process or functional layout

(c) Fixed position or location layout

(d) Combined or group layout

41
(a) Product or line layout:

Under this, machines and equipments are arranged in one line depending upon the

sequence of operations required for the product. The materials move form one

workstation to another sequentially without any backtracking or deviation. Under this,

machines are grouped in one sequence. Therefore materials are fed into the first

machine and finished goods travel automatically from machine to machine, the output

of one machine becoming input of the next, e.g. in a paper mill, bamboos are fed into

the machine at one end and paper comes out at the other end.

The raw material moves very fast from one workstation to other stations with a

minimum work in progress storage and material handling.

42
 PRODUCT PRODUCT B
A

Lathes Drilling M/c

Gear Shaper Grinding

Deburring Lathe

Heat Treatment Milling

Grinding Deburring

ASSEMBLY

Product or Line Layout

The grouping of machines should be done keeping in mind the following general

principles.

a) All the machine tools or other items of equipments must be placed at the point

demanded by the sequence of operations

43
b) There should no points where one line crossed another line.

c) Materials may be fed where they are required for assembly but not necessarily at one

point.

d) All the operations including assembly, testing packing must be included in the line

A line layout for two products is given below.

Product A

Product B

Advantages: Product layout provides the following benefits:

a) Low cost of material handling, due to straight and short route and absence of

backtracking

b) Smooth and uninterrupted operations

c) Continuous flow of work

d) Lesser investment in inventory and work in progress

e) Optimum use of floor space

f) Shorter processing time or quicker output

g) Less congestion of work in the process

h) Simple and effective inspection of work and simplified production control

i) Lower cost of manufacturing per unit

Disadvantages: Product layout suffers from following drawbacks:

a. High initial capital investment in special purpose machine

b. Heavy overhead charges

c. Breakdown of one machine will hamper the whole production process

d. Lesser flexibility as specially laid out for particular product.

44
Suitability: Product layout is useful under following conditions:

1) Mass production of standardized products

2) Simple and repetitive manufacturing process

3) Operation time for different process is more or less equal

4) Reasonably stable demand for the product

5) Continuous supply of materials

Therefore, the manufacturing units involving continuous manufacturing process,

producing few standardized products continuously on the firm’s own specifications and

in anticipation of sales would prefer product layout e.g. chemicals, sugar, paper, rubber,

refineries, cement, automobiles, food processing and electronics etc.

(b) Process layout:

In this type of layout machines of a similar type are arranged together at one place.

E.g. Machines performing drilling operations are arranged in the drilling department,

machines performing casting operations be grouped in the casting department.

Therefore the machines are installed in the plants, which follow the process layout.

Hence, such layouts typically have drilling department, milling department, welding

department, heating department and painting department etc. The process

or functional layout is followed from historical period. It evolved from the handicraft

method of production.

The work has to be allocated to each department in such a way that no machines are

chosen to do as many different job as possible i.e. the emphasis is on general purpose

machine.

The work, which has to be done, is allocated to the machines according to loading

schedules with the object of ensuring that each machine is fully loaded.

45
Product A:

Product B:

Process layout showing movement of two products

PRODUCT A PRODUCT B

Lathes Drilling Milling M/c

M/c

Grinding Gear Deburring

M/c Shaper M/c

Presses Welding Heat

Treatment

ASSEMBLY

Process layout:

46
The grouping of machines according to the process has to be done keeping in mind the

following

Principles:

a) The distance between departments should be as short as possible for avoiding

long distance movement of materials

b) The departments should be in sequence of operations

c) The arrangement should be convenient for inspection and supervision

Advantages:

Process layout provides the following benefits

a) Lower initial capital investment in machines and equipments. There is high degree of

machine utilization, as a machine is not blocked for a single product

b) The overhead costs are relatively low

c) Change in output design and volume can be more easily adapted to the output

of variety of products

d) Breakdown of one machine does not result in complete work stoppage

e) Supervision can be more effective and specialized

f) There is a greater flexibility of scope for expansion.

Disadvantages:

Product layout suffers from following drawbacks

a. Material handling costs are high due to backtracking

b. More skilled labor is required resulting in higher cost.

c. Time gap or lag in production is higher

d. Work in progress inventory is high needing greater storage space

47
e. More frequent inspection is needed which results in costly supervision

Suitability:

Process layout is adopted when

1. Products are not standardized

2. Quantity produced is small

3. There are frequent changes in design and style of product

4. Job shop type of work is done

5. Machines are very expensive

Thus, process layout or functional layout is suitable for job order production involving

non-repetitive processes and customer specifications and non- standardized products,

e.g. tailoring, light and heavy engineering products, made to order furniture industries,

jewelry.

(c) Fixed Position or Location layout

In this type of layout, the major product being produced is fixed at one location.

Equipment labor and components are moved to that location. All facilities are brought

and arranged around one work center. This type of layout is not relevant for small scale

entrepreneur. The following shows a fixed position layout regarding shipbuilding.

Material

Labor

Equipment

Ship building yard

Finished

Products (ship)

48
Advantages:

Fixed position layout provides the following benefits

a) It saves time and cost involved on the movement of work from one workstation to

another.

b) The layout is flexible as change in job design and operation sequence can be easily

incorporated.

c) It is more economical when several orders in different stages of progress are being

executed simultaneously.

d) Adjustments can be made to meet shortage of materials or absence of workers by

changing the sequence of operations.

Disadvantages:

Fixed position layout has the following drawbacks

a. Production period being very long, capital investment is very heavy

b. Very large space is required for storage of material and equipment near the product.

c. As several operations are often carried out simultaneously, there is possibility of

confusion and conflicts among different workgroups.

Suitability:

The fixed position layout is followed in following conditions

1. Manufacture of bulky and heavy products such as locomotives, ships, boilers,

generators, wagon building, aircraft manufacturing, etc.

2. Construction of building, flyovers, dams.

3. Hospital, the medicines, doctors and nurses are taken to the patient (product).

49
(d) Combined layout:

Certain manufacturing units may require all three processes namely intermittent process

(job shops), the continuous process (mass production shops) and the representative

process combined process [i.e. miscellaneous shops].

In most of industries, only a product layout or process layout or fixed location layout

does not exist. Thus, in manufacturing concerns where several products are produced in

repeated numbers with no likelihood of continuous production, combined layout is

followed. Generally, a combination of the product and process layout or other

combination are found, in practice,

e.g. for industries involving the fabrication of parts and assembly, fabrication tends to

employ the process layout, while the assembly areas often employ the product layout.

In soap, manufacturing plant, the machinery manufacturing soap is arranged on the

product line principle, but ancillary services such as heating, the manufacturing of

glycerin, the power house, the water treatment plant etc. are arranged on a functional

basis.

50
Existing layout:
Zig-zag arrangement:

Manufacturing

Filtration

Washing

Filling

Sealing

Labeling and
packaging

51
Drawbacks of the existing layout:

 for the given volume of production, space requirement are higher in this type of

layout

 material handling can not be mechanized which adds to extra cost and

consequently increase in wastage of material

 Material handling costs are high due to backtracking

 More skilled labor is required resulting in higher cost.

 Time gap or lag in production is higher

 Work in progress inventory is high needing greater storage space

 More frequent inspection is needed which results in costly supervision

Improvements in the existing layout:

 Require minimize the manufacturing cycle, minimize manufacturing cycle

which reduce work in process,

 If use product or line layout, resulting material handling is minimum and

automatic,

 Use of conveyors and gravity for material handling. Its possible in product or

line layout,

 The work is simplified by breaking in to elemental tasks which are mechanized

whenever possible. Consequently labor cost and & wastage of material are

lowered

 Smooth and uninterrupted operations

 Optimum use of floor space

 Less congestion of work in the process

 Simple and effective inspection of work and simplified production control

Modified layout:

52
Above improvement require in existing layout, considering that improvement we

should use modified layout i.e. product or line layout. The product or line layout draws

and explained below:

Product or line layout:

Under this, machines and equipments are arranged in one line depending upon the

sequence of operations required for the product. The materials move form one

workstation to another sequentially without any backtracking or deviation. Under this,

machines are grouped in one sequence. Therefore materials are fed into the first

machine and finished goods travel automatically from machine to machine, the output

of one machine becoming input of the next, e.g. in a paper mill, bamboos are fed into

the machine at one end and paper comes out at the other end.

The raw material moves very fast from one workstation to other stations with a

minimum work in progress storage and material handling.

The grouping of machines should be done keeping in mind the following general

principles.

a) All the machine tools or other items of equipments must be placed at the point

demanded by the sequence of operations

b) There should no points where one line crossed another line.

c) Materials may be fed where they are required for assembly but not necessarily at one

point.

d) All the operations including assembly, testing packing must be included in the line

Suitability: Product layout is useful under following conditions:

53
1) Mass production of standardized products

2) Simple and repetitive manufacturing process

3) Operation time for different process is more or less equal

4) Reasonably stable demand for the product

5) Continuous supply of materials

Therefore, the manufacturing units involving continuous manufacturing process,

producing few standardized products continuously on the firm’s own specifications and

in anticipation of sales would prefer product layout e.g. chemicals, sugar, paper, rubber,

refineries, cement, automobiles, food processing and electronics etc.

Modified layout (Product or line layout)

54
 Manufacturing:

-Mixing

-Filtration

Washing:

-Washing the bottles

-Drying the bottles

Filling and Sealing:

-Filling

-Sealing

Labeling and packaging

-Labeling the bottles

-packaging

Benefits of the proposed layout:

55
Product layout provides the following benefits:

a) Low cost of material handling, due to straight and short route and absence of

backtracking

b) Smooth and uninterrupted operations

c) Continuous flow of work

d) Lesser investment in inventory and work in progress

e) Optimum use of floor space

f) Shorter processing time or quicker output

g) Less congestion of work in the process

h) Simple and effective inspection of work and simplified production control

i) Lower cost of manufacturing per unit

FINDINGS

56
Findings are based on observation done in the plant, which is given below:

 Unskilled labor:

1. Improper material handling.

2. Improper use of material equipment.

3. Improper machine settings.

4. Improper filling and sealing.

All the above observations causes wastage of material

 Material handling are not automated which adds to extra labor and cost,

consequently increase in wastage of material which increase cost of production.

 Existing process layout is zig –zag arrangement requires more space which

increases length of manufacturing cycle. Work in progress inventory is high

needing greater storage space.

All the above observations increase length of manufacturing cycle consequently

increase production time

SUGGSTION

57
Suggestion based on present findings which are given below:

 Company should provide Proper training to the labor,

 Material handling should be automated.

 Process layout should be straight line, which will minimize the length of
manufacturing cycle subsequently reduce time for process. (Annexure I).

 New flexible plan should be introduce along with existing plans

 Manufacturing head should be more experienced and should competent to

manage manpower and money

All the above suggestion would definitely reduce cost, wastage as well as manpower
and time

BIBLIOGRAPHY

58
Books:

 L.C. Jhamb, “Manufacturing and Operation Management”, Everest Publishing

House, First Edition.

 S.N.Chary, “Production and Operation management”, The McGraw-Hill

Companies, Third Edition

Websites:

 www.niramaypharma.com

 www.google.co.in

Annexure I

59
Existing layout Modified layout
(Zig-zag arrangement) (Line layout)

Manufacturing Manufacturing:

-Mixing

-Filtration
Filtration

Washing:

Washing -Washing the bottles

-Drying the bottles

Filling
Filling and Sealing:

-Filling
Sealing
-Sealing

Labeling and packaging

Labeling and
packaging -Labeling the bottles

-packaging

Process layout should be straight line, which will minimize the length of manufacturing
cycle subsequently reduce time for process.

60