October 30, 2012 [ ]

OPERATIONS MANAGEMENT

TERM PAPER ON PLANT LAYOUT OF BISLERI

K.NADIYA

1PI11MBA65

SECTION’B’

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October 30, 2012 [ ]

INTRODUCTION

ABOUT THE INDUSTRY

Corporate control over water and water distribution in India is growing

rapidly: the packaged water business is worth Rs 1,000 crore, and it's

growing at a huge 40-50% annually.

Around 1,200 bottling plants and 100 brands of packaged water across the

country are battling over the market, overdrawing groundwater, and robbing

local communities of their water resources and livelihoods Bottled water,

one of India's fastest-growing industries, is a business built on the

foundation of bad governance, inequity and blatant exploitation.

Hard to believe, but the evidence is becoming clearer.

According to UNDP estimates, around 1.2 billion people worldwide lack

access to clean drinking water.

Today, there are more people in the world's hospitals suffering from

waterborne diseases than any other ailment.

Some 6,000 children die of such diseases every day. Providing safe drinking

water is the responsibility of the state.

That they are failing miserably is evident from the fact that over 1,600

Indians reportedly die every day because of waterborne diseases.

Despite these astounding figures, the Indian state has literally washed its

hands of the responsibility of providing clean drinking water to its citizens.

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When one in six people globally lives without access to clean drinking

water, does the answer lie in high-tech water purifiers and bottled water

that's out of reach for a majority of the Indian population?

Multinational corporations would have us believe so. And the reason is not

hard to find: along with imported water treatment technology like

activated carbon and ultra violet (UV) disinfection (Aqua guard), reverse

osmosis (Reviva) and resins (Zero-B), the water treatment market is

estimated to be worth around Rs 700 crore. The bottled water industry is

estimated to be a whopping Rs 1,000 crore business. Ithas grown at a rate of

40-50% annually over the past four years or so.

According to the Bureau of Indian Standards, there are 1,200 bottled water

factories all over India (of which 600 are in the state of Tamil Nadu).

Corporate control over water and water distribution in India is rapidly

growing. As globalization opens up opportunities for private players,

investing in water and/or manipulating water scarcity makes increasingly

good business sense for corporations.

Over 100 brands are battling over the bottled water market, hard-selling their

products in every way possible -- better margins to dealers, aggressive

advertising, and catchy slogans.

The real boost to bottled water came in the early- to mid-1980s with the

growth of PVC packaging and, later, PET bottles.

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October 30, 2012 [ ]

ABOUT BISLERI:

Mineral Water under the name ‘Bisleri’ was first launched in Mumbai in

glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a

company of Italian origin.

This company was started by Signor Felice Bisleri who first brought the idea

of selling bottled water in India.

Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral

water in glass bottles under the brand name 'Bisleri'.

Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations

substantially and the turnover has multiplied more than 20 times over a

period of 10 years and the average growth rate has been around 40% over

this period. Presently Bisleri has 8 plants & 11 franchisees all over India.

Their presence covers the entire span of India.

The company is planning to set up four more plants. Bisleri commands a

65% market share of the organized market.

Overwhelming popularity of 'Bisleri' & the fact that it has pioneered

bottled water in India, has made it synonymous to Mineral water and

has made it a household name.

When you think of bottled water, you think Bisleri.

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October 30, 2012 [ ]

LITERATURE REVIEW

1. “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. ” (Reference: Plant location and layout: Abha kumar)

2. Plant layout refers to the arrangement of physical facilities such as

machines, equipment, tools, furniture etc. in such a manner so as to have

quickest flow of material at the lowest cost and with the least amount of

handling in processing the product from the receipt of raw material to the

delivery of the final product.( Reference :”Web Su Kat “ )

3. The plant layout is a very critical part of running an efficient and cost

effective business. All work areas, production lines, material storage

facilities, etc. should be designed to perform to the highest rate and the

corresponding shortest cycle time. When designing a plant layout it is

necessary to take into account all the functions within the business. The

design must include not only the needs for the present business levels but

should also have provisions for future expansion. This is included to avoid

frequent and costly changes to the design as demand increases.

(Reference :ceoadvice.com)

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October 30, 2012 [ ]

Departments in M/s Parle Bisleri Pvt. Ltd.

“M/S Parle Bisleri Pvt. Ltd.” It is a medium scale company and it manufactures

and sells “Packaged Drinking Water”

The different departments of this company are: -

1. Filler Department: -

This is the plant in which the bottles are filled and packed under strict levels of

hygiene and safety as per the EU norms.

2. Plastics Department: -

Caps Section

Preforms Section

This is the Department where pet material is processed to make preforms using 6

Ekou injection moulding machine of 180 and 330 tonnes as per the requirements

of the preform.

3. Water Treatment Plant: -

Over here the raw water from the bore wells is treated in several stages before it is

filled thus making it very pure for human use.

4. Blowing Department: -

Over here the preforms are blown into bottles. This department has various manual

and fully automatic stretch blow moulding machines.

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October 30, 2012 [ ]

5. Water Testing Laboratory: -

The water-testing lab ensures that the water safety standards are maintained as per

the BIS and EU norms.

6. HORAI Department (Grinding Department): -

All rejected bottles, caps, jars and lumps of plastic material are sent over here for

grinding in order to re-use it.

Before it can be grinded it is very carefully segregated in different groups.

They also buy plastic bottles from outside and grind them for resale. It is a fully

automatic plant.

7. Stores Department: -

All the stock of finished, semi-finished goods are stored over here and are

dispatched as per the orders.

Up to 50 tonnes of stock are dispatched in a day.

Plant Location

Every entrepreneur is faced with the problem of deciding the best site for location

of his plant or factory.

What is plant location?

Plant location refers to the choice of region and the selection of a particular site for

setting up a business or factory.

But the choice is made only after considering cost and benefits of different

alternative sites.

It is a strategic decision that cannot be changed once taken.

If at all changed only at considerable loss, the location should be selected as per its

own requirements and circumstances.

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October 30, 2012 [ ]

Each individual plant is a case in itself. Businessman should try to make an

attempt for optimum or ideal location.

What is an ideal location?

An ideal location is one where the cost of the product is kept to minimum, with a

large market share, the least risk and the maximum social gain.

It is the place of maximum net advantage or which gives lowest unit cost of

production and distribution.

For achieving this objective, small-scale entrepreneur can make use

of locational analysis for this purpose.

Analysis of Bisleri on the location of its Factory

Analysis of a factory is carried on the basis of following steps

A) Deciding on domestic or international location

Parle Bisleri Pvt, Ltd is a national company therefore the plant will be located

within the country.

B) Selection of Region

1) Availability of Raw Material: -

a) The main raw material for any bottling plant is water the location that the has

been selected has 4 bore wells on site enough to supply water for whole year round

such that the company does not have rely on BWSSB for its water.

b) The other raw material it requires is HDPE, LLDPE for the production of caps.

PET for the production of bottles, the granules of these are easily available because

all the polymer manufacturing companies i.e. RELIANCE and IPCL have

distributors in Bangalore

2) Nearness to the market: -

Bangalore is one of the biggest cities in India and the market in Bangalore is very

large due to the fact the people here are more hygiene conscious. The factory is

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October 30, 2012 [ ]

located on the main road of the city therefore making it easier for it to transport the

finished goods to the different parts of the city as well out station as well as our

state.

3) Availability of power: -

There is no power shortage as Bangalore always has very less load shedding.

4) Transport facility: -

Bisleri has a fleet of trucks to meet the deliver needs of the company they Eicher

trucks and they also transport the finished goods and semi – finished goods out of

the state as well as within the city. The fleet is of about 10 trucks.

5) Suitability of Climate: -

Bisleri is located in Bangalore which is in the temperate zone therefore the

temperature are moderate.

C) Selection Of community

1) Availability of labor : -

Parle Bisleri Pvt. Ltd. is located in the city of Bangalore which is a fast developing

city it has abundant skilled, semi-skilled and manual or unskilled labor.

2) Civic Amenities for workers: -

Parle Bisleri is located in the Bangalore city and it is connected to every part of the

city and Bangalore has excellent public transport it also has excellent canteen

facilities for workers which give food to the workers at a subsidized rate.

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October 30, 2012 [ ]

Plant Layout

The subject plant layout refers to the arrangement of machinery, equipment and

other industrial facilities such as receiving and shipping departments, tool

rooms, maintenance rooms and employee amenities – for the purpose of

achieving the quickest and smoothest production at the least cost.

Bisleri plant at has two different plants where the complete production takes place.

In the one plant the cap and the bottle preforms are manufactured and the other

plant has the place for preforms to be blown into bottles and the filling of the

bottles is done.

This building also has the purification process of the water which has to be filled.

Analysis Of The Layout

The factory has wide doors leading to a raised platform.

There are small cranes which are used to pick up the lot of raw materials

such as pre-forms and caps which are brought by trucks.

They are then stored in an accessible place so that they can be taken for

further processing.

In order to facilitate the transporting of the boxes from one plant to another

there are medium trolleys which have to be manually pushed.

Therefore sloped entrance and exits are provided.

The warehouse where the finished goods are stored is located right next to

the vehicle pool in order to avoid wastage.

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October 30, 2012 [ ]

PLANT LAYOUT OF BISLERI

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October 30, 2012 [ ]

Analysis of Bisleri on the layout of its Factory

A) Materials: -

Materials include all kinds’ materials that are needed in the process of

manufacturing the product.

1) In the first place there are wide doors, which open to a raised platform with a

small crane which can be used to remove the sacks of raw material which arrive by

truck and the sack are stored in an accessible place next to the crane where it is

stored easily.

2) The sacks of raw material are removed and processed to form the caps and the

preforms respectively.

3) The caps and the bottle preforms are packed in cardboard boxes and transported

to the other plant for finishing the product.

4) In order to facilitate the transporting of the boxes from one plant to another there

are medium trolleys have to be manually pushed therefore sloped entrance and

exits are provided.

5) The godown where the finished goods are stored is located right next to the

vehicle pool in order to reduce the time wasted in transporting to the trucks.

B) Type of Industry: -

The type of industry and the method of the manufacturing process exercise

a significant influence on plant layout.

The different types of industries are: -

1) Synthetic

2) Analytical

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October 30, 2012 [ ]

3) Conditioning, and

4) Extractive.

Bisleri falls under the category of conditioning industry. A conditioning industry

is industry which is involved in the change of form or the physical properties of a

substance in this case water.

Each of the above industries can be further classified into: -

1) Intermittent industry, and

2) Continuous industry.

Bisleri falls under the category of a continuous industry.

A continuous industry is an industry that manufactures a product uninterrupted of

standard size.

C) Nature of plant location: -

The site selected for the location of a plant influences its layout in more ways than

one.

First, the size and the terrain of the site determine the types of building which in

turn, influences the layout.

Secondly, the location of the plant determines the mode of transportation,

depending upon the distances from the source of raw materials and market

to the plant.

The terrain of the place where it is located is that it is in step form i.e. the full

plot is not at the same level, this helps in the transportation of semi-finished

product to be transported to the filler.

D) Machinery: -

The type of product, the volume of its production, the type of process and

management policy determines the size and type of the machinery to be

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October 30, 2012 [ ]

installed which, in turn influences the plant layout. Also the fixed and stationary

parts of the machines should also be taken into considerations while designing the

plant layout.

In Parle Bisleri Pvt. Ltd. the machines are laid with many considerations such as: -

1) There is enough space for the repair and maintenance of the machinery can be

done easily.

2) The machines are placed in such a way that there is enough place for moving

and relocation of the machines

3) There is enough space for the workers to move about the machines and work

comfortably.

E) Workers: -

The layout designer should also consider the type, position and requirements

of employees.

If women workers are employed, the layout must be planned after keeping in

mind their particular requirements.

The position of employees, that is whether they remain stationary or moving,

also influences the layout.

Parle Bisleri Pvt. Ltd. has provided its workers with many facilities such as: -

1) Canteen conveniently located and providing hygienic food at concessional rates.

2) Toilets for men and women conveniently located and of sufficient number

maintained in hygienic conditions.

3) Due to the location of the plant it is very convenient for all the workers to reach

work.

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October 30, 2012 [ ]

Principles of Plant Layout

The factors discussed above, influence the choice of a particular type of layout.

While accepting the selected layout, the layout engineer should be guided by

certain principles.

The layout selected in conformity with layout principles should be an ideal one.

These principles are: -

1) The principle of minimum travel

2) The principle of sequence

3) The principle of usage.

4) The principle of compactness

5) The principle of safety and satisfaction

6) The principle of flexibility

7) The principle of minimum investment

In Parle Bisleri plant follows two principles: -

1) The principle of minimum travel

2) The principle of sequence

The principle of minimum travel: -

Men and materials should travel the shortest distance between operations so as to

waste labor and time and minimize the cost of materials handling.

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October 30, 2012 [ ]

In the Bisleri plant the machines are integrated in such a way that the Raw

materials, semi finished product and finished product have very less distance to

travel therefore less lead time therefore the costs are reduced.

The principle of sequence: -

Machinery and operations should be arranged in a sequential order.

This principle is best achieved in product layout, and efforts should be made to

have it adopted in the process layout.

In the Bisleri plant right from producing the caps and bottles preforms to treating

the water to making the bottles and filling and capping it all the machines

are arranged in a sequence therefore saving time and cost on material handling

equipment.

ABC Analysis

One of the widely used techniques for control of inventory is the ABC (always

better Control) analysis.

The objective of ABC control is to vary the expenses associated with

maintaining appropriate control according to the potential saving

associated with a proper level of such control.

The ABC approach is a means of categorizing inventory items into three

classes ‘A’, “B” and “C” according to the potential amount to be controlled.

Once the inventory is classified, we have a form base for deciding where we

will put our effort.

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October 30, 2012 [ ]

Logically we expect to maintain strong controls over the “A”, items taking

whatever special actions needed to maintain availability of these items and

hold stocks at the lowest possible levels consistent with meeting demands.

At the other end of the scale, we cannot afford the expenses of rigid controls,

frequent ordering and expediting, because of the low amounts in this area.

Thus with the “C” group, we may maintain somewhat higher safety stocks,

order more months of supply, expect lower levels of customer services or all

the three.

The steps to be followed for developing ABC analysis: -

1) List each item carried in inventory by number or some other designation.

2) Determine the annual volume of usage and Rupee value of each item.

3) Multiply each items annual volume usage by its rupee value.

4) Compute each items percentage of the total inventory in terms of annual usage

in Rupees.

5) Select the top 10% of all items which have the highest rupee % and classify

them as “A” items.

6) Select the next 20% of all items next highest Rupee percentages and designate

them “B” items.

7) The next 70% of all items with the lowest rupee percentage are “C” items.

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October 30, 2012 [ ]

ABC ANALYSIS OF BISLERI’S INVENTORY

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Conclusion

In conclusion it can be inferred that production management is very

important in today’s competitive world where cost cutting is a norm rather than

exception.

Production management provides a science for effective profit maximization and

optimum resources utilization.

Bisleri who has been in the past been facing tough competition from the other

brands has adopted production management in a big way in order to maintain its

lead in the packaged drinking water market.

By this project we have tried to highlight some of the measure taken by Bisleri in

order to improve its production processes and to show the significance and the

benefits of production management in today’s globalised market.

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