SYNOPSIS ON

Process Stabilization and Operational Excellence in ITC New Confectionary Plant at Salem, Tamil Nadu

SUBMITTED BY :
Shobhit Saxena Enrollment No. : 101899411

RESEARCH SUPERVISOR
Dr Arif Nadeem Associate Professor Department of Mathematics Bareilly College Bareilly

SUBMITTED TO

School of Management Studies Indira Gandhi National Open University Maidan Garhi, New Delhi

RATIONALE FOR THE STUDY

The project has been designed to understand, counsel and stabilize the different processes involved in manufacturing of different confectionery products (Hard boiled candies (HBC) and Modified Toffee). Manufacturing unit at Salem had been extended by installing a new manufacturing line, which is designed to produce three type of products (HBC, Lacto and Eclairs). All products have different characteristics, parameters, process flow and machinery. This is the first and only manufacturing line installed to manufacture three different kinds of product from same forming line. The project deals with understanding the confectionary process/ machinery, the chemistry behind the process, the reasons for consuming a raw material, the validation of each process step, understanding of the contract manufacturer and the manpower involved. The project deals with identifying process errors, operational issues and machinery problems. To counsel and solve the issues related to the manufacturing line involving manpower, process, and machinery by providing optimal solution. This project involves protocol of equipments and machinery installed, i.e. delivery against actual capacity, stabilizing all processes involved in different variants and ensuring finished product quality norms are fulfilled. This justifies the rationale of the study. .

OBJECTIVES OF THE STUDY

To understand the chemistry involved in sugar based confectionery. To understand the processes and machinery involved in manufacturing of Hard Boiled Candy (HBC), Eclairs and Lacto. To plan and manufacture each variant as per production plan. To observe and highlight all operational and quality issue. To coordinate with ITC & Contract Manufacturer to resolve issues observed. To stabilize the production, and provide Standard Operating Procedures at each process step. To protocol all machines for its delivery against rated capacity. To analyse the underlined problems and to suggest ways and means to overcome the problems.

RESEARCH METHODOLOGY
The data collected would be the current running performance of the plant measured in different attributes and analysed. The details on data are as follows. Nature of Data & Sampling Point

Production Data ( Daily Frequency) o o Daily Production (No. Of Lots) Cooker Daily Rework generation Cooker, Batch former, Euromac Die, Naked Sorting, Machine & FG.

Quality Data Test Name o o o o o Drop Weight Sampling Point Euromac Die. Frequency (Sample Size) 15 min (100 Drops) Every 5 Lots (5 gm) Hourly (100 Drops) Hourly (100 Drops) 30 min (SKU Size)

Kf ( moisture), Acidity Cooker & Kneader Vaccum Leak Test Defects generation Defect generation Pillow Pack Machines Pillow Pack Machines Final Goods

Sampling Method

Random Sampling Sequential Sampling

Tools & Techniques of Analysis

Measure of central tendency (Mean) & Measure of Dispersion (Standard Deviation, Range). Fish Bone Analysis for issues.

Pareto Analysis. Correlations or Scatter Chart analysis.

EXPECTED CONTRIBUTION
The project mainly focuses on manufacturing of confectionery at ITC Salem, this project would help to reduce the distribution cost in Southern part of India to 10% of present distribution cost. The other benefits of the projects are

Better serviceability to market. Lower inventory Capturing lost market, due to low supply of Lacto from Pollachi. Reduced setup cost, manufacturing three variants at single manufacturing line.

LIMITATIONS
The project may encounter following limitations

Less Manpower Equipment Capacity ( Designed v/s Actual) Insufficient funds availability with contract manufacturer. Contract manufacturer interest in different products. Delay in suggested modifications.

Research is an ongoing process but each study is conclusive and paves way to further research. The present study will make base for critical evaluation of the decision to continue to the extra line in the light of costs, profit generated and market share etc.

Purpose of Study
ITC Limited or ITC is an Indian public conglomerate company headquartered

in Kolkata, West Bengal, India. Its diversified business includes four segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. ITC's annual turnover stood at $7 billion and market capitalization of over $34 billion. The company has its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to India Tobacco Company in 1970 and then to I.T.C. Limited in 1974. ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Hotels, Paperboards, Packaging, Agri-Exports and Cigarettes, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. Apart from

the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bengaluru. The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

ITC currently has two brands in the confectionery segment - 'Candyman' and 'mint-o'. ITC launched the 'Candyman' range of confectioneries in August 2002. Led by the 'Candyman Fruitee Fun' range of assorted fruit flavours ('Wild Banana', 'Pineapple Punch', 'Orange Josh' and 'Mango Delite'), the 'Candyman' portfolio now includes deposited candy products like 'Candyman Butterscotch Licks' and 'Candyman clairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw the successful launch of 'Candyman Cofitino' in November 2005. The brand was further strengthened with the launch of 'Candyman Natkhat Mango' and 'Candyman Maha Mango'. In line with the strategy to provide innovative flavours and formats to consumers, Candyman Mango Licks was launched in June 2007, Candyman Lacto Creme Centre in June 2008 and Candyman Toffichoo Strawberry in early

2009. Candyman Lacto Creme Center is the only Lacto with a yummy cream filled center, and Candyman Toffichoo is a luscious fruit flavored soft and chewy toffee.

The 'Candyman' range of confectionery is targeted at fun-filled, naughty kids who seek a delightful candy experience through a range of candy types and flavours. 'mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched the compressed mint offering, across all major markets in India, with new and improved product and packaging. It is available in mint flavour with added blue specks to enhance consumer

experience. mint-o Cool Blue - a single mint in a pillow-pack was launched In November 2007. 'mint-o' is available in 3 sizes rolls of 20 and 6 and singles, capturing the international essence of youthful cool. ITC launched 'mint-o Fresh' in October 2004. An active mint deposited candy, mint-o Fresh is available in a refreshing mint flavour - mint-o Fresh Eucalyptus. Its launch extended the footprint of the 'mint-o'brand in line with the strategy of adding excitement and contributing to the growth of the confectionery category. 'mint-o Fresh' is especially targeted at the adult consumer creating a basket of mint-based products across price points. ITC Limited Foods Division has a major market for confectionery in southern part of India. Presently HBC and Eclairs are manufactured mainly at Ahmedabad (Gujarat), Hyderabad (Andhra Pradesh) and Nagpur (Maharastra). Setup of a new plant at Salem would reduce the distribution cost (Freight Cost) of the product, and also better connectivity would ensure reduced inventory created at different hubs. Lacto is presently manufactured at Pollachi (Tamil Nadu). An increase of 30% demand is expected in next year, and so an increase in capacity is required to cater the demand. Hence the production of Lacto at Salem would help in fulfilling the demand supply chain, and provide an cutting edge to produce different variants as per need. It has initiated me to work on this project.

TITLE OF THE PROJECT Process stabilization and operational excellence in ITC new confectionary plant at Salem, Tamil Nadu BROAD OUTLINE OF THE STUDY: CHAPTER I CHAPTER II CHAPTER III CHAPTER V INTRODUCTION STATEMENT OF PROBLEM RESEARCH METHODOLOGY PROCESS STABILIZATION IN ITCS NEW CONFECTIONERY PLANT AT SALEM. CHAPTER VI OPERATIONAL EXCELLENCE IN ITCS NEW CONFECTINERY PLANT AT SALEM.

CHAPTER IV OVERVIEW OF ITC LIMITED

CHAPTER VII FINDINGS: PROBLEMS & SUGGESTIONS BIBLIOGRAPHY

Reference from: Books & Manuals:

Sugar Confectionery by E.B. Jackson, Publisher, Blackie, 1990 Candy Making for Dummies by David Jones, Publication : Branes & Noble, 2005

Preservation of Foods Adulteration Act 1954. Statistic for Management by Levin and Rubin, Publication : TMH 2011 The Goal by Dr. E.M. Goldratt., Publisher North River Press, 1992 Operation Research by S.Kalavathy, Publisher, Vikas Pub. House 2010 Fundamentals of Research Methodology by Banerji & Rai Pub. Kitab Mahal Business Statitics by B.N.Gupta, Pub. SBPD Machine Manuals from vendors.

BIO-DATA OF GUIDE

NAME: POST HELD: DEPARTMENT: COLLEGE: COUNSELLOR: STUDY CENTRE: REGIONAL CENTRE: NO. OF STUDENTS CURRENTLY WORKING FOR MS-100: MOBILE NO.

DR ARIF NADEEM ASSOCIATE PROFESSOR MATHEMATICS BAREILLY COLLEGE BAREILLY IGNOU 2704 27

TWO 09897608566

SIGNATURE ( DR ARIF NADEEM)