―STUDY OF LOGISTICS MANAGEMENT‖
at Haldiram‘s Foods International LTD. (at Nagpur plant)
BY SAGAR ASHOK RAIKWAR (B.E.)
CERTIFICATE FROM COMPANY
CERTIFICATE FROM COLLEGE
I would like to express my sincere gratitude to honorable Managing Directors and Executive Director for the guidance provided. This project would not have reached its end without the supervision and direction which they gave. I thank them for spending their valuable time and energy in guiding me throughout this project and for certifying me of my successful completion of the project report. I take this opportunity to express my deep gratitude to Production Manager who has always been there to guide me throughout this project report. I thank to the Human Resource Manager for offering me this opportunity. I would like to express my sincere thanks to Quality Control In-charge and , Food Technologist and Commercial Officer for their valuable guidance and unforgettable Cooperation during entire course of summer project period. This project would not have been successful without the help of our Honorable Director Sir. I would also like to thank my mentor and project – coordinator for assigning me a project of such a great learning experience and introduce me with real life project and I also thank to all lecturers for their useful guidance and advice.
TABLE OF CONTENT Sr. No. CONTENT EXECUTIVE SUMMARY INTRODUCTION 1.1 Introduction to topic 1.2 Scope of the Project 1.3 Limitations of the Project ORGANISATIONAL PROFILE 2.1 COMPANY PROFILE 2.2 Organisation MEMBERSHIPS 2.3 PRODUCTS PROFILE 2.4 ORGANIZATION CHART OBJECTIVE OF PROJECT RESEARCH METHODOLOGY 4.1 Theory of Research Methodology 4.2 Title 4.3 Process of Research 4.4 Limitations LOGISTICS MANAGEMENT LOGISTICS MANAGEMENT AT HALDIRAM DATA ANALYSIS OBSERVATITIONS SUGGESTIONS CONCLUSION BIBLOGRAPHY ANNEXURE Page No.
5 6. 7. 8. 9. 10.
LIST OF TABLES Sr. No. Particulars Page No.
LIST OF GRAPHS Sr. No. Particulars Page No.
EXECUTIVE SUMMARY The researcher completed his summer project in Haldiram‘s Foods International Ltd., Nagpur, under the Title ―Study of Logistic Management‖. Basically Haldiram‘s Foods International Ltd. is a Food Industry. Company often carries out study of specific problems and opportunities in the market so as to analyze the performance of their brands and respective products in the market. This can be done by carrying out market survey, product preference test and advertisement evaluation. This researcher is concerned with the vital subject of business logistics and supply chain management, an area that can be essential to a firm‘s competitive strategy and revenue generation. This management area has been described by many names, including physical distribution, materials management, transportation management, logistics, and supply chain management. Relevant business activities may include one or more of the following areas: transportation, inventory, order processing, purchasing, warehousing, materials handling, packaging, customer service standards, and production. The focus of this Publication is on the planning, organizing, and controlling of these activities - key elements for successful management in any organization. Special emphasis is given to strategic planning and decision making as an important part of the management process. Managerial efforts are directed towards setting the level of the logistics activities so as to make products and services available to customers at the time and place required, and in the condition and form desired, in the most profitable and cost-effective way. Logistical activities have always been vital to organizations, and so business logistics and supply chain management represents a synthesis of many concepts, principles, and methods from the more traditional areas of marketing, production, accounting, purchasing, and transportation, as well as from the disciplines of applied mathematics, organizational behavior, and economics. This Publication attempts to unify these elements to assist in the effective management of the supply chain.
The researcher aims to present ideas, principles and techniques that are fundamental to good business logistics practice. It concentrates on important activities of management such as planning, organizing, and controlling, and also on a triangle of interrelated transportation, inventory, and location strategies, which are at the heart of good logistics planning and decision making. Contemporary trends that affect the scope and practice of business logistics and supply chain management have been integrated into the body of the text. Firstly, emphasis is placed on logistics and supply chain
management in a worldwide setting to reflect the growing internationalization and globalization of business in general. Secondly, the shift towards service-oriented economies by industrialized nations is emphasized by showing how logistics concepts and principles are applicable to both service-producing trims and product-producing ones. Thirdly, attention is given to the integrated management of supply chain activities.
As a part of MBA curriculum after completion of first year, we (MBA students) have to undergo the job training for a period of two months after which we have to submit a project report to the university by the completion of 3rd semester. Each management student learns a lot during his two years of MBA program. The (summer) project provides required practical training to student and gain the practical knowledge of the topics learned in classroom and to find its relation with the real market scenario. The project gives the live experience about the various aspects of the management that is help full from future point of view. The project provides the opportunity to understand the organization very closely. Logistical competency is achieved by coordinating network design, information, transportation, inventory, and warehousing, material handling, and packaging. Work related to these functional areas is combined to create the capabilities needed to achieve logistical requirements. Business logistics is a relatively new field of integrated management study in comparison with the traditional fields of finance, marketing, and production. As previously noted, logistics activities have been carried out by individuals for many years. Businesses also have continually engaged in move- store (transportationinventory) activities. The newness of the field results from the concept of co- ordinate management of the related activities, rather than the historical practice of managing them separately, and the concept that logistics adds value to products or services that are essential to customer satisfaction and sales. Although co-ordinate logistics management has not been generally practiced until recently, the idea of co-ordinate management can be traced back to at least 1844. In the writings of Jules Dupuit, a French engineer, the
idea of trading one cost for another (transportation costs for inventory costs) was evident in the selection between road and water transport. ―The fact is that carriage by road being quicker, more reliable and less subject to loss or damage; it possesses advantage to which businessmen often attach a considerable value. However, it may well be that a saving induces the merchant to use a canal; he can buy warehouses and increase his floating capital in order to have a sufficient supply of goods on hand to protect himself against slowness and irregularity of the canal, and if all told the saving in transport gives him a cost advantage, he will decide in favour of the new route.‖ The first textbook to suggest the benefits of co-ordinate logistics management appeared around 1961, in part explaining why a generally accepted definition of business logistics is still emerging. Therefore, it is worthwhile to explore several definitions for the scope and content of the subject. A dictionary definition of the term logistics is: ―The branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities.‖This definition puts logistics into a military context. To the extent that business objectives and activities differ from those of the military, this definition does not capture the essence of business logistics management. A professional organization of logistics
managers, educators, and practitioners formed in 1962 for the purposes of continuing education and fostering the interchange of ideas. Its definition: “Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers’ requirements.”
1.2 Scope of the Project: The scope of the project was to the study of logistics management in the company, i.e. to study the logistics management. While studying the logistics management process, to find out the advantages and limitations of the process and the ways to overcome these limitations and improve the overall effectiveness of the system.
1.3 Limitations of the Project: The main limitation of the project was unavailability or insufficient data due to confidentiality and policy of the company. However the majority of the data is collected through the manuals, catalogs and log books. Some of the data were collected through the direct interaction with the people on shop floor and the management staff peoples and some of the data were entered hypothetically.
(AT NAGPUR PLANT)
2.1 COMPANY PROFILE
It was founded in 1937 by Shivkisan Agrawal, as retail sweets and namkeens shop in Bikaner, Rajasthan, India. Beginning of way back in 1941 in Rajasthan. The brand name HALDIRAM BHUJIWALA was introduced. Subsequently reach extended 1958 to Kolkata and further to west India & never looked back.1983 opened shop in Chandni Chowk the main hub of commercial centre in Delhi. Prime focusing was on sweets & namkeens. It was lead by three brothers Shri Moolchand, Shri Satyanarain and Shri Rameshwar. Shri Moolchand & his four sons Shiv Kishan, Shri Shiv Ratan, Shri
Manohar Lal, and Shri Madhu. Shiv kishan established Haldiram‘s name in Nagpur. Mean while Manohar lal Aggarwal and Madhu Sudan had taken Delhi (the National Capital) by storm with resounding success of Haldiram at Chandni Chowk & never looked back. Encouraged by the tremendous response of Consumers, HALDIRAM decided to go in for up-gradation in technology, packing, production etc. with installation of plant & machinery of best available state-of-the-art technology and sophistication. Evaluation:
Early 90s- split of 3 units 1992-manufacturing unit with retail 1995- restaurant in Delhi 1997- Separate unit for namkeen 1999- started operating as separate entity competing among themselves for market share
2000- international market.
In the year 2003 the latest state of art Technology has been brought to manufactured extruded snacks such as Vermicelli and 3D Snacks.
In the year 2003 company has got certified of HACCP and ISO.
Over a period of time the haldiram‘s group has emerged as a household name
for ready-to-eat snack in India.
2.2 ORGANISATION MEMBERSHIPS:
Haldiram's is a member of the following food associations from India and abroad:
APEDA (Agriculture and Processed food Products Exports Development Association) India
ITPO India Trade Promotion Organization (Application submitted) Snack Food Association SFA (Snack Food Association) ESA (European Snacks Association)
1) To study Logistics Management at Haldiram. 2) To understand the concept and techniques to perform fundamental performance of Haldiram‘s products. 3) To know what are the factors that are affecting the process of manufacturing different products. 4) To point out the benefits & drawbacks of the future market of Haldiram and give suggestions for achieving market. 5) To study Material Flow at Haldiram 6) To do critical analysis of Material Flow and information flow related with material at Haldiram. 7) To suggest solution to make more effective Logistics Management at Haldiram.
4.1 THEORY OF RESEARCH METHODOLOGY
The study is conducted on the population of Nagpur in which the distributors, dealers and retailers are covered. . The data has been collected through personal interaction and with the help of a detailed questionnaire & also secondary data was used. Questionnaire has been prepared keeping in various aspects related with Dealers & distributors‘ expectations & factors that affect their rational behavior so that relevant inferences can be drawn from the same. Questionnaire consist of open-ended, close-ended, multiple choice as well as numbered and ranking questions so that the respondents, i.e. the Traders, Non Traders & end consumers can freely & without getting confused express the true picture of their sale, which will in turn help in reflecting true of picture of their satisfaction level & Market share of different brand.
METHODS USED FOR DATA COLLECTION 1. DATA COLLECTION APPROACH : Survey Method
2. DATA SOURCE: Primary Dealers from Dealers, end customers & internal data from Haldiram's.
3. CONTACT METHOD: Personal Interaction. 4. FIELD WORK: Field work consisted of visit. ANALYTICAL tools used
Analysis has been done using MICROSOFT EXCEL Sheet, MICROSOFT WORD, &. Various marketing statistical tools & interactive graphs etc. This research is conclusive in nature and statistical in design as it involves data collection and analysis by statistical and quantitative methods and deriving results in the form of percentages and proportion of variables so that further relevant interference could be drawn.
―STUDY OF LOGISTICS MANAGEMENT‖ at Haldiram‘s Foods International Ltd.
4.3 PROCESS OF RESEARCH
DEFINE RESEARCH OBJECTIVES PRIMARY DATA SOURCES OF DATA 2nd’ARY DATA DATA COLLECTION
DATA ANALYSIS AND INTERPRETATION
SUGGESTIONS AND RECOMENDATIONS
PRIMARY DATA The data is original in nature and it is collected at first time for a specific purpose is called as ‗Primary Data‘. Primary Data for Market Survey is as follows:1) Personal contacts (Interview)- Consumers, Distributors, employers 2) Questionnaire (Interview) 3) Observations Consumers, Distributors, employers Consumers, Distributors, employers
Secondary Data was collected from Books and the Internet website mentioned below in bibliography and references.
METHOD OF DATA COLLECTION 1) Personal contacts (Interview)- Consumers, Distributors, employers 2) Questionnaire (Interview) 3) Observations Consumers, Distributors, employers Consumers, Distributors, employers
1. The Time Constraint was a major limitation to the study. 2. The information collected solely depends upon the respondents answers and accuracy of information could vary. 3. Getting actual information from the respondents, company was difficult. 4. As stipulated by the college regulations the study is undertaken for a period of 50 days. This is very limited period. 5. It is not possible to obtain some confidential data from the organization. 6. Limited time was available for interviewing the respondents. As a result of this it was not possible to gather full information.
5.1 DEFINITION OF LOGISTICS MANAGEMENT
Figure 5-0 Logistics Definition
This is an excellent definition, conveying the idea that product flows are to be managed from the point where they exist as raw materials to the point where they are finally discarded. Logistics is also concerned with the flow of services as well as physical goods, an area of growing opportunity for improvement. It also suggests that logistics is a process, meaning that it includes all the activities that have an impact on making goods and services available to customers when and where they wish to acquire them. However, the definition implies that logistics is part of the supply chain process, not the entire process.
LOGISTICS is also defined as time related positioning of resources. The whole concept of Logistics is based on 7 R's which are: Right quantity. Right time Right place Right quality Right price Right condition Right customer
If one considers that logistics comprises both the building up of stocks and capabilities and the containment of weapons and forces, then it is clear that a distinction can be made between two important aspects of logistics: the first one dealing with production and the second one with consumption. The following definitions of these aspects enjoy widespread acceptance: -
Production Logistics (also known as: acquisition logistics that part of logistics concerning research, design, development, manufacture and acceptance of materiel. In consequence, production logistics includes: standardization and interoperability, contracting, quality assurance, procurement of spares, reliability and defense analysis, safety standards for equipment, specifications and production processes, trials and testing (including provision of necessary facilities), codification, equipment documentation, configuration control and modifications.
Consumer Logistics (also known as: operational logistics) that part of logistics concerning reception of the initial product, storage, transport, maintenance (including repair and serviceability), operation and disposal of materiel. In consequence, consumer logistics includes stock control, provision or construction of facilities (excluding any material element and those facilities needed to support production logistic facilities), movement control, reliability and defect reporting, safety standards for storage, transport and handling and related training. So, what is the supply chain process or, more popularly, supply chain management? Supply chain management (SCM) is a term that has emerged in recent years that captures the essence of integrated logistics and even goes beyond it. Supply chain management emphasizes the logistics interactions that take place among the functions of marketing, logistics, and production within a firm and those interactions that take place between the legally separate firms within the product-flow channel. Opportunities for cost or customer service improvement are achieved through co-ordination and collaboration among the channel members where some essential supply chain activities may not be under the direct control of the logistician. Although early definitions such as physical distribution, materials management, industrial logistics and channel management - all terms used to describe logistics - have promoted this broad scope for logistics, there was little attempt to implement logistics beyond a company‘s own enterprise boundaries, or even beyond its own internal logistics function. Now, retail firms are showing success in sharing information with suppliers, who in turn agree to maintain and manage inventories on retailers‘ shelves. Channel inventories and product stock outs are lower. Manufacturing firms operating under just-in-time production
scheduling build relationships with suppliers for the benefit of both companies by reducing inventories.
Definitions of the supply chain and supply chain management reflecting this broader scope are: ―The supply chain (SC) encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction), through to the end user, as well as the associated information flows. Materials and information flow both up and down the supply chain.‖ ―Supply chain management (SCM) is the integration of these activities, through improved supply chain relationships, to achieve a sustainable competitive advantage.‖ After careful study of the various definitions being offered, Mentzer and other writers propose the broad and rather general definition as follows: ―Supply chain management is defined as the systematic, strategic coordination of the
traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.‖ The supply chain management model in Figure 1-1 viewed as a pipeline shows the scope of this definition. It is important to note that supply chain management is about the co-ordination of product flows across functions and across companies to achieve competitive advantage and profitability for the individual companies in the supply chain and the supply chain members collectively.
It is difficult, in a practical way, to separate business logistics management from supply chain management. In so many respects, they promote the same mission: ―To get the right goods or services to the right place, at the right time, and in the desired condition, while making the greatest contribution to the firm.‖ Some claim that supply chain management is just another name for integrated business logistics management (IBLM) and that the broad scope of supply chain management has been promoted over the years. Conversely, others say that logistics is a subset of SCM, where SCM considers additional issues beyond those of product flow. For example, SCM may be concerned with product pricing and manufacturing quality. Although SCM promotes viewing the supply channel with the broadest scope, the reality is that firms do not practice this ideal. Fawcett and Magan found that companies that do practice supply chain integration limit their scope to one tier upstream and one tier downstream. The focus seems to be concerned with creating seamless processes within their own companies and applying new information technologies to improve the quality of information and speed of its exchange among channel members. The boundary between the logistics and supply chain management
terms is fuzzy. For the purposes of this Program, integrated business logistics management and SCM will be referred to interchangeably. The focus will be on
managing the product and service flows in the most efficient and effective manner, regardless of descriptive title. This includes integrating and coordinating with other channel members and service providers to improve supply chain performance when practical to do so.
The Supply Chain:
Logistics/SC is a collection of functional activities (transportation, inventory control, etc) which are repeated many times throughout the channel through which raw materials are converted into finished products and consumer value is added. Because raw material sources, plants, and selling points are not typically located at the same places and the channel represents a sequence of manufacturing steps, logistics activities recur many times before a product arrives in the marketplace. Even then, logistics activities are repeated once again as used products are recycled upstream in the logistics channel. A single firm generally is not able to control its entire product flow channel from raw material source to points of the final consumption, although this is an emerging opportunity. For practical purposes, the business logistics for the individual firm has a narrower scope. Usually, the maximum managerial control that can be expected is over the immediate physical supply and physical distribution channels, as shown in Figure 5-2.
The physical supply channel refers to the time and space gap between a firm‘s immediate material sources and its processing points. Similarly, the physical distribution channel refers to the time and space gap between the firms‘s processing points and its customers. Due to the similarities in the activities between the two channels, physical supply (more commonly referred to as materials management)
1. Materiel Function of Logistics 2. Supply Function of Logistics 3. Service Function of Logistics 4. Engineering Function of Logistics
5. Medical Function of Logistics 6. Contracting Function of Logistics
1. Materiel Function of Logistics
Production or acquisition logistics covers materiel, from the first phase of the life cycle to its final disposal from the inventory. The first part of the cycle, from specification, design and production is clearly a function of production logistics. Reception of the equipment into service, its distribution and storage, repair, maintenance and disposal are clearly a consumer logistic task. However, the initial design of the equipment which is part of production logistics has to take account of the consumer aspects of repair and maintenance, and therefore involves both disciplines.
2. Supply Function of Logistics
Supply covers all materiel and items used in the equipment, support and maintenance of military forces. The supply function includes the determination of stock levels, provisioning, distribution and replenishment.
3. Service Function of Logistics
The provision of manpower and skills in support of combat troops or logistic activities includes a wide range of services such as combat re-supply, map distribution, labor resources, postal and courier services, canteen, laundry and bathing facilities, burials, etc. These services may be provided either to one's own national forces or to those of another nation and their effectiveness depends on close cooperation between operational, logistic and civil planning staffs.
4. Engineering Function of Logistics
The area of logistic engineering, while not exclusively a logistic function will require close coordination with logistics as the mission is very closely aligned with logistics in terms of facilitating the logistic mission of opening lines of communication and constructing support facilities. The engineering mission bridges the gap from logistics to operations and is closely related to the ultimate success of both.
5. Medical Function of Logistics
This function entails the provision of an efficient medical support system to treat and evacuate sick, injured and wounded personnel, minimize man days lost due to injury and illness, and return casualties to duty. An effective medical support system is thus considered a potential force multiplier. Though medical support is normally a national responsibility, planning must be flexible and consider coordinated multinational approaches to medical support. The degree of multinational will vary depending on the circumstances of the mission, and be dependent upon the willingness of nations to participate in any aspect of integrated medical support.
6. Contracting Function of Logistics
Contracting has become increasingly important to the conduct of operations; It is a significant tool that may be employed to gain fast access to in-country resources by procuring the supplies and services.
5.5 ADVANTAGES OF LOGISTICS
Competitive Advantage: The source of competitive advantage is found firstly in
the ability of the organization to differentiate itself in the eyes of the customer, from its competition and secondly at a lower cost and hence at a greater profit. That is successful companies either have a productivity advantage or a value advantage or a combination of the two.
Productivity Advantage: Productivity Advantage gives a lower cost profile.
Traditionally it has been suggested that the main route to cost reduction was by gaining greater sales volume and there can be no doubt about the close linkage between relative market share and relative costs. However it must also be recognized that Logistics Managers can provide multitude of ways to increase efficiency and productivity and hence contribute significantly to reduced unit costs.
Value Advantage: It has been an axiom in Marketing that 'Customers don't buy
products they buy benefits'. Put another way, the product is purchased not for itself but for the promise of what it will deliver. Unless the product or the service that we offer is distinguished from its competitor in some way, there is a strong likelihood that the market will view it as a 'commodity' and so the sale will tend to go to the cheapest supplier. Hence the importance of adding value to our offerings to mark it out from the competition. An extremely powerful means of adding value is service. Increasingly we are finding that markets are becoming more service sensitive. And this of course poses particular challenge for Logistics Management. There is trend in many markets towards a decline in the strength of 'brand' and a consequent move towards 'commodity' market status. This simply means that it is
becoming progressively difficult to compete purely on the basis of brand or corporate image. A number of companies have responded to this by focusing on service as a means of gaining a competitive edge. Service in this context relates to the process of developing relations with customers through the provision of an augmented offer. This augmentation can take many forms including delivery service, after sales service, financial packages, technical support and so forth.
Service Value advantage Leader
Leader Commodity Cost Leader Market
Chart 5.1 - Logistics and Competitive Advantage
In practice what we find is that the successful companies will often seek to achieve a position based upon both a productivity advantage and a value advantage; a useful way of examining the available options is to present them as a simple matrix. Let us consider these options in turn: For companies who find themselves in the bottom left hand corner of our matrix the world is an uncomfortable place. Their products are indistinguishable from their competitor‘s offerings and they have no cost advantage. These are typical commodity market situations and ultimately the only strategy is either to move to the right on the matrix i.e. to cost leadership, or upwards into a 'niche'. Often the cost leadership route
is simply not available. This particularly will be the case in a mature market where substantial market share gains are difficult to achieve. Cost Leadership, if it is to form a basis of a viable long term marketing strategy, should essentially be gained early in the market life cycle. This is why market share is considered to be so important in many industries. The other way out of the 'commodity' quadrant of our matrix is seek a 'niche' or segment where it is possible to meet the needs of the customers through offering additional values. This value addition is mostly through service. There is unfortunately no middle ground between cost leadership and niche marketing. Being caught in between is quite a bad news. Finally, perhaps the most defensible position in the matrix is the top right hand corner. Companies who occupy that position have products that are distinctive in the values they offer and are also cost competitive. It is apposition of supreme strength. Gaining Competitive Advantage through Logistics Logistics Management has the potential to assist the organization in the achievement of both a cost/productivity advantage and a value advantage. In the first instance there are a number of important ways in which productivity can be enhanced through logistics. It provides opportunities for better capacity utilization, inventory reduction and closer integration with suppliers at planning level.
LOGISTICS MANAGEMENT AT HALDIRAM
HALDIRAM’S FOOD PRODUCTS:
Soan Padadi Section Delhi Section
HALDIRAM‘S FOOD PRODUCTS LTD.
Ice Cream Section
All business decisions are based upon evaluation of some data. Availability of data of right information is very important for making right decisions. Once the data begins to flow in, attention turns to data analysis. It is almost impossible for the management to deal with all this data in its raw form. Such data must be presented in a suitable and summarized form without any loss of relevant information so that it can be efficiently used for decision making. Whenever there is need to present numerous figures or to describe a technical process or procedures, graphic aids can help to communicate this information to the audience more quickly. The two graphic aids mostly used in research reports are tables and graphs. Besides making the report easier to read and understand, graphic aids improve its physical appearance. The data collected was analyzed and presented as per the requirements using graphs and maps. The graphical representation is done with an object to understand all the analysis in a lucid manner. The analysis is totally depended upon the collected data in the study.
6.1 Flow of Process in company Firstly the marketing Dept. receives or conceives the orders from various organizations & marketing firms which cover the worldwide market. As per the orders looking ahead for minimum one month the required quantity of raw material is decided. According to that Production Dept. set targets. The Purchase dept raises the Purchase order. for raw material and other materials which are necessary for the production. The gate entry and store entry for the incoming material is done, If the material conforms to the quality norms and inspection tests then the GRN of the items is done according to the delivery challan or the material is rejected. Quality checking for incoming raw material is done by Quality Control Dept. and assurance of raw material is given by Quality assurance Dept.
The production Planning Dept. plans for the production of various items as per the requirement i.e. the production schedule on weekly or monthly basis is prepared. Processing on raw material takes place at the production plant and the raw material is getting converted in to finished products. The finished product after satisfying all the essential quality checks goes to the Warehouse Dept. The finished products are dispatched by the Dispatch Dept. which finally goes to the customer as per the requirement.
6.1 Flow of Process in Company
A) Procedure for Receipt of Raw material-
1. Responsibility- Store dept. staff
2.1 On reporting the driver of the vehicle at the security gate, security personnel verifies the documents i.e. delivery challan, invoice and address.
2.2 Security personnel inform to store dept. staff and carries relevant document to store dept. for verification.
2.3 Store officer should verify the name of supplier/vendor
2.4 Verify documents as per checklist. If satisfactory inform security to send vehicle for weighing.
2.5 Store dept. staff along with security personnel accompanies the vehicle for Weight Bridge.
2.6 After completion of weighing procedure security allows vehicle inside and directs the driver towards store dept.
2.7 Store officer check the vehicle for cleanliness and absence of foreign material
2.8 If manufacture date is not mention, do not accept the material.
2.9 Ensure that quantity mentioned on delivery challan is as per purchase order.
2.10 Before unloading check that air curtains are ON.
2.11 Unload the material Batch wise.
2.12 Ensure material having proper status label for following details like item name, lot no., gross wt., net wt., manufacture and exp. Date, manuf. License no. etc.
2.13 If any discrepancy bring it to the notice of QA for further action.
B) Procedure for In-warding of Raw Material (RM) and Packaging Material (PM)-
1.1 Enter details in RM/PM inward register separately. 1.2 Store department shall affix ‗INWARD‘ label on each container/bag just below production label.
1.3 Generation of General Receipts Number (GRN)
1.3.1 GRN should be prepared in triplets. (Yellow, Pink, White)
1.3.2 GRN shall prepare separately for RM and PM.
1.3.3 After preparation GRN, forward it to QC department for sampling and analysis of material. 1.3.4 QC samples material and affix ‗UNDER TEST‘ label on each and every container bag.
1.3.5 After analysis of RM/PM, QC officer sends Approval Request (AR) for the same with copies of GRN. 1.3.6 QC shall affix ‗Approved‘ label on every container/ bag otherwise ‗Rejected‘ if rejected.
1.4 If received material are approved by QC then entry shall be made in stock ledger.
1.5 If material is rejected then material shall be return to the party.
C) Procedure for Dispensing of Raw Material-
1.1 Receipt of raw material requisition cum issue note.
1.2 Check raw material requisition cum issue note received from production dept. duly signed by production chemist and authorized by dept. head for product name, batch no., and quantity.
1.3 Assign AR no. from stock register on raw material requisition note for all items in FIFO basis.
1.4 Check QC approved label before dispensing of raw material.
Quality Control Department
Quality is a broad term as it refers to physical, chemical, technological, economical, bacteriological & aesthetic characteristic. Quality control can also be defined as an activity or procedure method that will ensure the maintenance & continuity of the specification & standards of the product within the prescribed tolerance limit during all stages of handling, processing, production, packing, storing & distribution. The quality control starts right from receiving of raw material in order to achieve finished product of better quality. The samples are analyzed in laboratory and if the sample does not conform to the standard it is rejected. At Haldiram‘s quality evaluation for each ingredient is done and inspection reports are maintained very efficiently.
Following parameters are checked and reported daily.
Raw Material & Finished Product Acidity pH Brix Moisture Content SO2 Fat Content
Packing Material Date of Manu. GSM Product Code Batch No. Product Wt. Thickness
Organoleptic Tests Colour Flavor Taste Appearance
Tests for Raw Materials (Inspection) 1) Moisture Content: Take the weight of empty porcelain dish Add 5 gms of sample and weigh again Keep the dish in over at 105oC for 4 hours Cool in the desiccators and weigh again Calculate % of moisture as follows Formula: % Moisture = Where, W1 =Weight of dish + sample before drying W2 = Weight of dish + sample after drying W = Weight of empty dish 2) Gluten Content: Weigh 25 gms of flour Make a smooth dough with sufficient amount of water Keep in water for 1 hour Wash under tap water till starch is removed Spared the wet gluten in previously weighted dish Keep it at 133 ± 2 Dry for 2 hours Cool and weigh again Formula: % gluten = Where, W2 = Mass in gms on drying
W1 = Mass in gms of empty dish W = Weight of sample M = % moisture
3)Ash Content: Weigh the empty silica crucible Take 5 gms of dry sample Keep in muffle furnace for 5 hrs at 55oC Cool in desiccators & weight again Formula: Total ash = Where, W1 =Weight of dish + sample before drying W2 = Weight of dish + sample after drying W = Weight of empty crucible 4)SO2 Content: Weigh 25 gms of sugar /jaggery in a beaker washed with D/W Dissolved in 100ml D/W Add 10 ml 25% H2SO4 Add 10 ml 10% NaOH Add few drops of starch indicator Titrate with 0.02N Iodine soln till faint blue colour Formula: SO2 in ppm = X (100)
Test for Raw Milk Acidity : Weigh 10 gms of sample Add 90 ml of D/W Add 2-3 drops of phenolphthalein Titrate with 0.1N NaOH till light pink colour persist Formula : 1 ml of 0.1N NaOH = 0.09 gm of lactic acid % acidity as lactic acid = Protein : Weigh 10 gms of sample Add 0/4 ml of saturated Potassium Oxalate Allow to stand for 3 mins. Add phenoptkalein till pink colour Add 2 ml formaldehyde (37-41)% Again titrate with NaOH till light pink colour
Formula:- % protein = (Titrate value) x (1.7) Fat:- By Gerber Method Take 10 ml of conc. H2SO4(0.08 Sp gravity) in Butyrometer Add 10.75 ml of raw milk from these the sides of Butyrometer slowly Add 1 ml of amyl alcohol & distilled water as needed Put the stopper & centrifuge for 5 mins. And read the % fat on the graduated scale SNF:SNF is calculated from standard chart on which fat content & lactometer reading are given. CLR:-CLR is used to measured Sp. Gravity of milk using lactometer Fill the lactometer jar completely Palace the lactometer in it & allow it to float freely Note the lactometer reading when it becomes stable Note the temperature using thermometer. Temp. should be at 70oC or 29oC Adulteration Test:Determination of starch in milk Take 3 ml of milk Boil & cool Add few drops of I2 solution & mix well Observe the colour Development of dark colour indicates presence of starch in milk Test for Neutralizers Take 5 ml milk sample To it add 5 ml absolute alcohol Then add 1 ml conc. HCL Boil & cool If red colour appears is present Test for oils Take 10 ml of a Solute alcohol Warm it Neutralized with NaOH using phenolphthalein as an indicator Add 1 gm of oil Warm it Titrate with NaOH (0 N) till light oink colour
Formula : Oleic acid : Where , V= Burette reading N= Normality of NaOH Wt=Weigh of sample Peroxide value test: Weigh 5 to 10 gm of sample Add 30 ml of 3:2 acetic chloroform mixture Then 0.5 ml saturated KI solution Stand for 1 min Add 35 ml of distilled water Few drops of starch indicator Titrate with sodium thiesulphate (0.1 N) till colorless Formula: PV as milk-equivalents per 1000 Gms sample= Where, S=Volume in ml of sodium thiosulphate used by sample B=Volume in ml of sodium thiosulphate used by blank N=Normality of sodium thiosulphate G=Wt. in gm of the sample Iodine value test: Weigh 0.2 – 0.3 gm of oil in a 250 ml glass stopper conical flask Add 25 ml of CCl4 Add 25 ml of wijs solution. Replace the stopper after moistening with KI Solution mix & allow standing in the dark for 30 mins. Add 15 ml of 10% KI solution & 100 ml distilled water Titrate with 0.1 N solution thiosulphate solution using starch indicator Carry out blank titration without fat.
Formula:I2 value= Where, B=Titer value of Blank S= Titer value f sample N=Normality of sodium thiosulphate solution W= Wt. in gm of the sample
Test for Finished Products and their shelf life Determination of pH: pH is measured by pH meter. Products are dissolved in distilled water to form 10% solution & pH is measured. Brix: Sugar syrup is applied on the flat surface of Brix refractor meter & the reading is noted from the lens. Fat Content (By Soxhlet Method) : Weigh accurately 25-30 gms of well mixed sample into yhe filter paper thimble Extract with Hexane completely Weigh the flash with fat or oil Formula:Fat % = Where, M2= Mass in grams of the fat with soxhlet flask M1= Mass in grams of sample M= Mass in grams of sample Moisture Content & Ash Content:- Procedures used for determing of moisture content and ash content are same as used for raw material.
MEETHA MAAL SECTION
In Meetha Maal Section Khoa Based and other Products are prepared. This section is semimechanized section. In this section, more than 50 varieties of products are prepared. Kaju Katli: - It is a Kaju based product. Ingredients:- Kaju and sugar.
Washing of Kaju(2/3 times)
Mixing Sugar and Kaju(1:1)
Grinding into fine paste Cooking at (80-90)o C Cooling till (35-40)oC
Rolling into a sheet
Cutting into diamond shape
Decorating with silver leaf
Packing and cooling
What is a food package? A wrap, pouch, bag, box, cup, tray, can, tube, bottle and jar are some of the many forms of packaging that contain food products. It must contain a food product as well as protect and preserve it for a specific length of time. Each package must, by law, display product information for the consumer.
What are the purposes of a food package? Imagine a container of milk. This is a gallon cloudy-white plastic (made out of HDPE - high density polyethylene) jug that contains 2% pasteurized milk not a milk- carton holding an individual serving or even a small plastic bottle of chocolate milk. Now everyone is all thinking of the same item! What are the purposes of that plastic jug?
• It is a package for the milk processor to ship the milk to the grocery store. • It is a package for the grocery store manager to display for his/her customers. • It is a package to hold the milk so that you the consumer can carry it home. • It is a package for you to keep in the refrigerator. • It is a sealed package indicating to the consumer that it is not contaminated. • It has a label telling the consumer the contents, nutritional information, name of the dairy or brand name, bar code for pricing, and expiration date. (Required by law) • It is easy to use. It has a handle and reusable screw top. • This HDPE container is also recyclable and has a recycle code of #2 embossed on it. • It is chemically non-reactive with the milk. In other words, the plastic container does not interact with the milk to produce an off-flavor nor does the milk cause holes to form in the container. • It is durable and can withstand the stress of the transportation, storage and the consumer pouring milk from it for a week or more.
Some general purposes of food packages are to: Contain Carry Dispense Preserve Measure Inform Display Motivate Promote Glamorize Disguise! Adhere to the law Protect Endure
Preservation of food is very important in order to maintain the quality and to extend the shelf life of the product. Packaging is an integral part of processing and preservation. Good packaging material protects the food from being contaminated with micro-organisms, dirt, foreign partials, improper handing etc. It also preserves the taste, flavor, odor, texture and physical appearance of the product. In Haldiram more emphasis is given on the suitability and attractive of packaging material for each of the product. There are two types of packaging materials:a) Primary Packaging b) Secondary Packaging
a) Primary Packaging: In this packaging 7 types of packaging are used. 1. 2. 3. 4. 5. 6. 7. Paper & Plastic Packaging LDPE Packaging Poly Bags Packaging Polypropylene Plastic Duplex Boxes Polyethylene Wax Tins e.g. Soan Cake , Soan Papadi e.g. Papad e.g. Bakers e.g. Ice –Cream e.g. Kaju katli e.g. Ice – Cream
b) Secondary Packaging Material : These are the carton boxes used to hold the primary packaging boxes together. These are made up of thick cardboard paper. Protects food items from damages, during the transportation. Vendors for packaging material 1) Interpack Polymers 2) Interpack Polyplast 3) Sushant Packaging
Raw Material (Meetha Maal &Bengali) Consumed for year 2008, 2009, 2010-
Above graph shows the raw material required for the company for year 2008, 2009, 2010. Above graph shows that raw material requirement for 2009 is increased and again it decreased for 2010
Proportion of Vehicle wise Transportation for Dispatch (For 2009, 2010)
16% 46% Truck Tempo Others 38%
Observation: Above graph illustrate the Vehicle wise transportation for Dispatch -
Table No. 7.1 TYPE OF VEHICLE TRUCK TEMPO OTHERS PERCENTAGE OF TRANSPORTED 46% 38% 16%
Transportation cost as per type of VehicleTable no. 7.2
Type of Vehicle Truck Tempo Others
Cost of Transportation/1000kg. 5150 4100 6700
8000 7000 6000
Cost in Rs.
5000 4000 3000 2000 1000 0 Truck Tempo Others Cost of Transportation/1000kg.
Observation: Transportation cost by Truck is more than that of Tempo and it is highest for others like Air and Ship.
Proportion of Vehicle wise Transportation for Dispatch (For 2010)
8% 28% TRUCK Tempo Others 64%
Observations: As the transportation cost is different for different type of vehicle therefore the combination of transportation is changed to reduce the Transportation cost. The percentage of transportation by Truck is reduced from 46% to 28%, by Tempo is increased 38%to64% and for others it reduced from 16%to8%.
Proper material handling is not been done at workshop. Sometimes improper inspection of raw material is seen. Some dealers are wanting timely delivery of required products in their shop. Timely information regarding of raw materials is not observed. Hygienic conditions are sometimes not observed by workers.
In some area within Maharashtra the brand is not known, so it is important to market
the products in those regions. There is need of massive advertising television media, city cable and newspapers. Television media is most important for advertising. There is needed to show advertisement minimum one month on city cable for set the brand in customers mind.
1. As hygiene is one the most important issues the factory workers must avoid eating pan, pan masala and spiting all around the factory premises and workshop. 2. Daily checking of the worker must be done before they go to work.
3. A daily cleaning of the workshop before starting and after ending the work. 4. A weekly check up must be of the workers. So that if a worker is suffering from any communicating disease, he should be given medical treatment. And should be allowed to take a medical leave.
5. The workshop should be properly ventilated, so that there is a proper air circulation. 6. Ventilator fans should be used during the working hours.
7. A proper lighting system should be used in the workshop. 8. A regular checking of the raw materials should be done so that it can be used first and then second stock can be used for manufacturing sweets.
9. When transportation vehicles are used then it should be cleaned before sending it to the Distributors.
10. Corrugated Boxes which are to keep the sweets should be safe from any
chemical and physical damage to sweets.
Haldiram‘s Foods International ltd. is one of the big industries which ensure the food safety and hygiene. Researcher has undergone 2 months project on a study Logistic Management in factory. After studying different parameters of consumer buying behavior i.e. consumers‘ expectation about product, quality, and service, the researcher concludes that the products and services of company are outstanding. Its products have full potential to stand in market and face the competition by the players in market. Company must develop the distributions channels in the cities with area wise dealers. Quality is the dominating aspect which influences consumer to purchase. Prompt availability of other brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. So the company should take aggressive promotional activities against the competitors. Researcher suggests that a weekly check up must be of the workers. If a worker is suffering from any communicating disease, he should be given medical treatment and should be allowed to take a medical leave.
Logistics and Supply Chain Management by Prof.K.Shridhra Bhat Donald J. Bowersox and David J. Closs Logistics Management -The integrated supply chain process Tata McGrew-Hill Publishing Company Ltd., New Delhi; pages from 25-56, 457-494, 668-691. Sunil Chopra and Peter Meindl Supply Chain Management — Strategy, planning and operation Pearson Prentice Hall 2007.3; 399-429. Research Methodology by C.R. Kothari Logistics Management by Dr. Bülent SEZEN The IOMA Handbook of Logistics and Inventory Management by Bob Donath , Joe Mazel,Clindy Dubin, & Perry Patterson