Operations Review & Identification of Cost Saving/ Efficiency Improvement

Opportunities at PMV Maltings Pvt. Ltd.

By

Bhaghat G

Kashipur Plant

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The process

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MIS Report

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Questionnaire: Production Dept.Rate from 1 to 5, wherever applicable • 1 – Bad; 2 – Just Fine; 3 – Good; 4 – Very Good; 5 – Excellent• Bad – Multiple breakdowns, lot of maintenance issues, the problem might get

worse, lack of spare parts in case of emergency. Skill set of the employees low

• Just Fine – Running properly as of now (basically on Jugaad). But don’t know when it breaks down. Only few employees are adequately skilled

• Good – Running alright currently; enough back up available in case of failure. Lot of cost saving is possible. Many people working have decent skill sets and only few have good skills

• Very Good – Equipment running as recommended by manufacturers or experts. People working on it have enough knowledge to tackle any situation as and when it arises. Proper availability of spares; Improvements in process can be made (although at a slightly higher cost) Many people working have very good skills

• Excellent – No complaints; seems perfect; Optimum inventory of spares; cannot suggest any further improvements. Many people working have excellent skills

•

Questionnaire for middle managers

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• Rate of the efficiency of the system in your work area?

• Rate the overall efficiency of the plant (depending on the possibility of improvement)?

• Rate the average training level of the employees in your dept.

• Rate the responsiveness of your team in case of breakdown or any other problem

• Rate the mechanical maintenance team

• Coordination between production dept. and mechanical maintenance dept.

• Rate the electrical maintenance team

• Coordination between production dept. and electrical maintenance dept.

• Rate the following

i. Process of barley weighting

ii. Checking water level in tanks

iii. Loading steep tanks

iv. Separation of CO2

v. Transfer to GB

vi. GB loading

vii. Temperature control in GB

viii. GB unloading

Questionnaire for middle managers

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S.No Name Dept Designation ExpEff.in own dept

Eff. Of plant

Preventive maint.

Breakdown response of ur team

Breakdown response process

Production section

coord bt prod & main teams

Other maint. team

Coord bet both maint. teams

1 S.C.Joshi Elec_main Head 35 4 4 3 5 3 3 4 3 3

2 Rais Ahmed Elec_main staff Engg 5 4 3 5 5 4 3 2 4 4

4 Mandeep Singh Mech_main Head 9 3 3 3 4 3 2 3 4 4

5 Suresh Kumar Mech_main staff Engg 4 4 3 4 4 3 3 4 4 5

6 Anuj Mech_main staff Engg 3 4 3 4 4 3 3 4 4 4

3.8 4.4 3.2 2.8 3.4 3.8 4

Dept Designation ExpEff.in own dept

Eff. Of plant

Breakdown response of ur team

Mech_maintenance team

Coord. Bet prod & mech_main

Elec_maintenance team

Coord. Bet prod & Elec_main

7 T.C.Upadhay Production Head 3 3 3 2 3 3 3

8 D S Neghi Production supervisor 3 4 4 2 3 3 3

9 shishir Chandra Production 11 3 4 3 3 3 3 3

Total 3.33 2.33 3 3 3

3.5 3.375

1. Rate the safety measures adopted in your dept. (Gloves, helmet, shoes, jacket, goggles, mask etc.)a. Very Good b. Good c. Just Fine d. Bad e. Very Bad2. Frequency of problems in your work area when compared to last yeara. Increased b. decreased c. more or less the same 3. Rate the working condition of the machinesa. Very Good b. Good c. Just Fine d. Bad e. Very Bad4. Work hoursa. As mentioned b. more overtime c. less than mentioned5. Rate of occurrence of problems a. Very high b. High c. Reasonable d. Low e. Very low6. Response from the management when complaineda. Prompt b. not so prompt c. apathetic 7. Difficulty of worka. As expected b. more than expected c. less than expected8. How is the management’s attitude towards mistakes committed?a. Very Serious b. serious c. take it easy policy9. Does management convey the instructions clearlya. Very clear b. somewhat clear c. manageable d. Not at all clear10. Rate the wastage in your work areaa. No wastage b. Somewhat c. Lot of wastage

Questionnaire for level 2 employees

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Issue Follow up system

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Issue/improvement possibility Problem area/dept.

Significance

(High/Medium

/Low)

What are the effects SolutionCost of

implementation

Practical problems in

implementation of solution

Is the impl a necessity or just an

additional benefit

If decided to

implement, who

takes the ownership

Tentative date

of completionStatus Remarks

Excess fuel consumption

Boiler, mainly due to

steam wastage,

condensate leakage and

under- util of condensat

More cost, pollution, fuel shortage,

wrong signals to workers about

seriousness of mngmnt

change steam safety valves;

Optimum usage of DG (easy to

implement when more people

are recuited/trained)

1 - 2 lakhs (for safety

valves and a fraction

of recr & training

cost)

Not seen as critical

Both. It will have direct impact

on company's revenue and

improve the safety

Mr. Anand, CFO 1st June

Cleanliness of equipment Mainly in PC/BG

Frequent maintenance problems

including breakdowns. Greater time

to correct in case of any prob

Clean it regularly <10k/month

Difficult working conditions,

lack of sufficient manpower,

regular followup

It is not diff to implement

Mr. Joshi + Mr.

Suresh; Mr. Anuj +

Mr.Raiz (on rotational

basis)

Cont. process

Low motivation level among

employeesWhole plant

lack of interest leading to decrease

in productivity, attrition (leaving

job)

Celebrating birthdays, recog of

good work and rewarding it,

new perf appraisal policy,

canteen, 2 more water coolers

< 5k/month

These initiatives incur

additional costs but do not

genertare direct income

atleast few of these can be

implementedMr.Vineet 1st June

Switching on lights during day

time

At several places such as

Top of silos, near the

entrance

Power wastage, more pollution

It is a simple job. But the

responsibility had to be

allotted to some one

zeromany people view it as too

simple an issue to considerMr.Suresh Cont. process

Not immediate change over to

UPCL from DG during power

failures

Rs.10 more per unit of electricity is

consumed because of DG.

Additional costs can run into

thousands

Recritment...lack of suff

manpower. Only a supervisor

and his asst have to handle GB,

steep, Kiln.

zeroproblematic to take prompt

action during nightsDoesn't take much of an effort BS /DS Cont. process

General alignment of locking

and unlocking cylinders (GBs)GBs

Machine wear and tear, frequent

breakdowns, time loss

Training for operators, quickly

resolving any technical issues

Batch quality might be effected

due to lesser time for a batchMr.Raiz

Pump House problem Pump House

On an avg 8 manhrs lost/day.

Machine might get damaged soon;

Prbm if boiler donot receive water

in time (~4.5 times in every shift).

Positive suction can be

adopted<1 lakh

Pumps need to be shut for

some time

Mr.Anand, Mr.

Mandeep1st July

Preventive mainenance of

machinery not regularMultiple places

Decrease of equipment lifetime,

frequent breakdowns

Recruitment, training and

supervision

Cost of hiring

additional staff

Currently man power

constraints

Increased break downs can

create losses in lakhs. So, highly

necessary

Mr. Mandeep,

Mr.Joshi1st July

Bardana problem

Bags of required sizes

(40kg, 60 kg) are not

readily avail for malt

loading

delay in dispatch, truck waiting

charges, space constaints problems

which will increase in future

As dispatching is a regular

process, standardize the

process to avoid last min hurry

Just some time for

planning

Finding good suppliers who

provide bags for lesser cost

Automation problem (PLC)

Zero limit sensors at

conveyers, Material

sensor in kiln, Variable

Freq Drive (VFD) in GB3

Loss of power, bypassing comes

with its own risks

Detect areas where automatn

is poss and implement auto if it

can be effectively impl with

lesser costs; train operators

Depends on where

automation is

implemented;

training costs

Necessary as the freq of PLC

probms are increasing leading

to loss of batch quality and

more break downs

Mr.Raiz, M. Mohit 1st July

• Operations related

• Production related

• HR related

• Technology related

Recommendations

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Lets do some Jugaad

Bardana problem

Switching power from DG to UPCL

Water Pump problem

Shift from Auto mode to manual

Safety Value issue

Employee care & labour relations

Inter-department coordination

Lights On & Off

Management of Spare parts

Kiln: Optimization

Issues, Recommendations & Key learnings

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Lots of scope for Improvement

Not just one direction

Communication is important

Company comes first

Its good to be Socially responsible, ethical & follow law (as much as possible)

Conclusion

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Silos

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Boiler

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Water Pump, Kiln

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Germination Box

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Under Construction

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