1

INDUSTRIAL VISIT REPORT

AT

PARLE PRODUCT PVT. LTD, NEEMRANA

JAIPUR INSTITUTE OF MANEGEMENT STUDIE, JAIPUR

SUBMITTED TO: DR. R.K. SHARMA (PRINCIPAL)

SUBMITTED BY: MAHENDRA PAL SINGH

MARCH 2010

2

3

INTRODUCTION

INDUSTRY

Indian Biscuit Industry: According to Indian Biscuit Manufacturers' Association

(IBMA), after stagnating growth of about 14 per cent in 2006-07, biscuit industry

grew by 17 per cent in 2007-08 due to excise duty exemption on biscuits with MRP

up to Rs 100 per kg, Indian Biscuit Manufacturers Association. ). Therefore, Indian

biscuit industry has demanded a reduction in value added tax to four per cent from

the current level of 12.4 per cent on biscuit, so that the growth rate can go up to 20

per cent.

The Rs 8,000-crore industry hopes that the biscuit segment will have over 20 per

cent annual growth in the next five years if VAT is reduced to four per cent

India, world's third largest biscuit producer after the US and China, produces nearly

19.5 lakh tonnes annually and the states, however, have imposed the VAT at 12.5

per cent, which is very high.

According to IBMA, organised sector produces around 55% and the balance 45%

being contributed by the unorganised bakeries. In terms of volume biscuit

production by the organised segment in 2006-07 is estimated at 1.47 million tonnes.

Per capita consumption of biscuits in the country is only 1.8 kg, as compared to 2.5-

5.5 kg in the South Eastern countries, and in Europe and US, respectively.

In India per capita consumption of biscuits is estimated at a low 1.9 kg, reflecting

the huge potential for growth of the industry. Over 900 million Indians buy and eat

biscuits with varying frequency in any year.

4

The penetration of branded product in this segment is quite significant, and is

valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as

developed as the biscuits industry. The biscuit segment has developed with large

markets of mass consumption covering over 90% of the overall potential market.

The unorganised sector accounts for over 50% of the market. The market has been

growing at a CAGR of 6-7% pa.

Biscuit is a hygienically packaged nutritious snack food available at very

competitive prices, volumes and different tastes. According to the NCAER Study,

biscuit is predominantly consumed by people from the lower strata of society,

particularly children in both rural and urban areas with an average monthly income

of Rs 750.

Bread and biscuits are the major part of the bakery industry. Biscuits stand at a

higher value and production level than bread.

India Biscuits Industry came into limelight and started gaining a sound status in the

bakery industry in the later part of 20th century when the urbanized society called

for readymade food products at a tenable cost. Biscuits were assumed as sick-man's

diet in earlier days. Now, it has become one of the most loved fast food products for

every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and

reasonable at cost. States that have the larger intake of biscuits are Maharashtra,

West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and

West Bengal, the most industrially developed states, hold the maximum amount of

consumption of biscuits. Even, the rural sector consumes around 55 percent of the

biscuits in the bakery products.

The annual production of biscuit in the organized sector continues to be

predominantly in the small and medium scale sector before and after de-reservation.

5

Confectionary Industry

Production area

besides the industrial areas in leading metropolis the bakery product &

confectionery are carried on small- scale basis also at household level.

Whereas, the confectionery industry has developed remarkably with the

international brand mingling with the domestic market toffees, chocolates etc.

produced at large scale in important industrial regions of the country.

Growth promotional activities

In 1977- 78 Government reserved the confectionery bread and biscuit

manufacturing for small scale and restricted entry of large producers. During the

last 2 decades, small and unorganized players shared the growth in the industry.

Currently, there are an estimated 2 million bakeries across the country engaged

in production of bread, biscuits and other products The Indian confectionery

market is segmented into sugar-boiled confectionery, chocolates, mints and

chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy,

toffees and other sugar-based candies, is the largest of the segments and valued

at around Rs 2,000 crore.

The confectionery industry has a current capacity of 85, 000 tonnes, the

market is growing at the rate of 10-15% per annum. The estimated annual

production of bakery products in India is in excess of 3 million tonnes, of which

bread accounts for nearly 50% and biscuits 37% in volume terms in the

organized sector. The bakery sector in India is one of largest segments of the

food processing industries; annual turnover in value terms is approximately $

900 million.

6

Types

Chocolates, hard-boiled sweets, chewing gum and other products are a major

growth area. The bakery industry includes basic baked products like breads,

biscuits, cakes, pastries, rusks, buns, rolls etc.

The Confectionery Industry in India was a closely held business potential for

several decades in the past predominantly driven by cost factors and limited

market and consumer perceptions. Confectionery product being an impulse

generated demand exercise was more dependent on trade push and intermittent

consumer pull thereby resulting in very narrow spectrum of brand activity. The

retail and market penetrations even today continue to be in the rural and semi

urban and urban markets where bulk of the sales activity takes place through B

and C class outlets. Confectionery being a child-oriented product, it is largely

sold by individual counts at the retail trade level. The potential child consumer

for this category of products in the past was largely influenced by the relevant

socio-economic factors and media explosions.

7

Organization Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute baby

photo containing 10-12 biscuits with the company‟s name printed with in Red.

Times changed, variety of biscuits did come and go but nothing has changed with

these biscuits. Yes, the size of their packing has definitely changed but for the

consumer good as these are money saver packs.

The Parle name conjures up fond memories across the length and breadth of the

country.

After all, since 1929, the people of India have been growing up on Parle biscuits

and sweets.

Initially a small company was set up in the suburbs of Mumbai city to manufacture

sweets and toffees. The year was 1929 and the market was dominated by famous

international brands that were imported freely. Despite the odds and unequal

competition, this company called Parle Products, survived and succeeded by

adhering to high quality and improvising from time to time

A decade later, in 1939, .Parle products began manufacturing biscuits, in addition to

sweets and toffees. Having already established a reputation for quality, the Parle

brand name grew in strength with this diversification. Parle Glucose and Parle

Monaco were the first brands of biscuits to be introduced, which later went on to

become leading names for great taste and quality.

For around 75 years, Parle have been manufacturing quality biscuits and

confectionary products. Over the years Parle has grown to become a multimillion

dollar company with many of the products as market leaders in their category. The

recent introduction of Hide & Seek chocolate chip biscuits is a product of

innovation and caters to a new taste, being India‟s first ever chocolate chip biscuits.

8

Apart from the factories in Mumbai and Bangalore Parle also has factories in

Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit

and confectionery plants in the country. Additionally, Parle Products also has 7

manufacturing units and 51 manufacturing units on contract.

All these factories are located at strategic locations, so as to ensure a constant

output and easy distribution.

Brands

An in-depth understanding of the Indian consumer psyche has helped Parle evolve a

marketing philosophy that reflects the needs of the Indian masses. With products

designed keeping both health and taste in mind, Parle appeals to both health

conscious mothers and fun loving kids. The great tradition of taste and nutrition is

consistent in every pack on the store shelves, even today. The value-for-money

positioning allows people from all classes and age groups to enjoy Parle products to

the fullest.

Biscuit goodies: Confectionary:

Parle-G GolGappa

Krackjack Classic Mint

Monaco Lite Mint

Monaco Funion Kismi

Kreams Orange Candy

Hide and Seek Mango Bite

Hide and Seek Milano Melody

Poppins

Eclairs- 50 p

Bourbon Melody Softe- 1Rs.

Kismi Bar

Parle Marie Chox

Kacha Mango

Milk Shakti Mazelo

Imli Bite

Kismi Gold

Parle 20-20 Cookies Munch on snacks:

Nimkin Musst Bites

9

10

Parle biscuits: Parle biscuits are linked with factors of power and wisdom

providing nutrition and strength. Parle biscuits are indeed much more than a tea-

time snack, they are considered by many to be an important part of their daily food.

Parle can treat you with a basket of biscuits which are not only satisfying but are

also of good and reliable quality. Parle biscuits cater to all tastes from kids to senior

citizens. They have found their way into the Indian hearts and homes.

Parle G

For over 65 years, Parle G has been a part of the lives of every Indian. From

the snow capped mountains in the north to the sultry towns in the south, from

frenetic cities to laid back villages, Parle G has nourished strengthened and

delighted millions. Filled with the goodness of milk and wheat, Parle G is not

just a treat for the taste buds, but a source of strength for both body and mind.

Tear over a packet of Parle G to experience what has nourished Generations of

Indians since last sixty five years, making it truly Hindustan Ki Taakat.

Pack Sizes available: 16.5gm, 38.5gm, 60.5gm, 82.5gm, 99gm, 209gm,

313.5gm, 418gm, 825gm

11

Krack jack

The original sweet and salty biscuit is one of the most loved biscuits in the country.

It‟s not just a biscuit, it‟s the taste of relationships captured in a biscuit.

A little sweet and a little salty crafted in such a delicate and delicious balance, you

can never get enough of it. Have it anytime you like with anything you like. Pack

Sizes available: 75gm, 170gm, &240gm

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light

crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to life‟s

ordinary moments. Pack Sizes available: 75 gm, 120 gm & 240 gm

12

Hide and Seek

The ingredients that go into making this prized cookie are a well-guarded secret.

What is is the effect it has on those who eat it. A cookie with a reputation for

romance. Indulge in the sinful taste of Milano and everything that follows it. Pack

Sizes available: 25 gm, 62 gm, 100 gm, and 200 gm

Hide and Seek Milano

The ingredients that go into making this prized cookie are a well-guarded secret.

What is is the effect it has on those who eat it. A cookie with a reputation for

romance. Indulge in the sinful taste of Milano and everything that follows it. Pack

Sizes available: 65 gm, 135 gm

13

Kreams

Orange: Tickle your senses with Parle Orange Kream – The tangy orange cream

between two scrumptious biscuits makes for a real treat.

Age no bar!

In Parle kream also some teats available like Elichi, pineapple, mango. these kream

biscuits available in same packing size.

Pack Sizes available: 80 gm, 90 gm, 160 gm, and 180 gm

14

Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat category

of the Parle product range is a genuine treat for every snack lover. This category

can satisfy one's taste and at the same time create a desire for more. These

confectioneries are a sheer delight to the taste buds and have a universal appeal.

Parle Biscuits and confectioneries, continue to spread happiness & joy among

people of all ages

.Melody

Caramel meets chocolate to yield an outcome nothing less than delectable.

Parle Melody comes with an irresistible layer of caramel on the outside and a

delightful chocolate filling within. Pop it in your mouth and relish the unique

experience. It won‟t be too long before you find yourself asking the age old

question „Melody itni chocolaty kyon hai?'

15

Mango Bite

Need a quick escape from everything ordinary? Just pop a Mango Bite and dive

into a tropical mango paradise. Sit back, roll it around and enjoy one wave after

another of juicy mango treats that go on and on and on.

Kachcha Mango Bite

The glider got copied and became a jet plane. Western hits got copied and

became Anu Malik songs. The typewriter got copied and became a keyboard.

Similarly, we have managed to copy the tangy flavour of raw mangoes in a

candy which is a little sour, a little sweet and certainly a little mischievous. We

call it Kaccha Mango Bite. It truly is a „kacche aam ka copy‟.

16

Kismi Toffee

It‟s everything that the Kismi Toffee Bar is, only smaller. Wrapped in the

distinct flavour of elaichi (cardamom) this toffee is sure to send your sweet

tooth on a joyride.

Golgappa

Mention Golgappa to lovers of roadside snacks and watch them get excited.

Just the very memory of the sweet tangy taste of Golgappa is enough to make

the taste buds tingle, the mouth water and the senses to party. Now imagine if

you can have the Golgappa whenever and wherever you want it, even as you

are reading this, for example. It is possible with Parle Golgappa. It captures the

same magic of the popular street side Golgappa in a Goli or a hard boiled

candy, if you prefer. So pop in a Golgappa and treat your senses to a fun filled

trip, whenever and wherever.

17

Parle Snacks:

Salty, crunchy, chatpata and crispy caters to the bunch of Parle snacks. Parle

snacks are a complete delight to the taste buds and can create the desire for more

and more. These snacks will not only satisfy your tummy but will also sustain a feel

in your mouth to associate you with the bond of Parle.

Musst Bites

Cheesy fluffy baked snacks that are so irresistible that you don‟t want to share

them. Available in mouthwatering Garden Spices, sweet and sour Tangy

Tomato, tantalizing Chatpata Chat and heavenly garden spices, you are going

to have a hard time deciding which one you want for yourself.

18

PARLE PRODUCTS PRIVATE LIMITED

Many of the Parle products - biscuits or confectioneries, are market leaders in

their category and have won acclaim at the Monde Selection, since 1971. With a

40% share of the total biscuit market and a 15% share of the total confectionary

market in India, Parle has grown to become a multi-million dollar company.

While to consumers it's a beacon of faith and trust, competitors look upon Parle

as an example of marketing brilliance. Parle G, a premium glucose biscuit is the

world‟s largest selling biscuit.

A factory of these glucose biscuits is situated in Neemrana is producing 7000

metric tonnes every month. A list of premium quality biscuits and

confectioneries is produced and distributed across nations.

19

20

We visit the Parle industry in NEEMRANA. Parle is a big biscuit manufacturing

industry in India. They provide world class quality biscuit to there customer.

This industry giving us very important knowledge about the industry culture.

I give u my personal view about the PARLE. When I visit this industry.

The plant‟s boundaries and grounds secured to prevent entry by unauthorized

Persons. Positive identification is required to control entry of visitors to the plant e.g.,

picture IDs or sign-in/sign-out at entrance. They provide self locker to us for our

mobiles & bags. Because mobiles are not allow in the industry. There is sufficient

outside lighting to allow detection of unusual activities on any Part of the

establishment outside premises during non-daylight hours. Emergency exits have self-

locking doors and/or alarms in industry and also securities system like Heating,

Ventilation, Air Conditioning systems, Propane Gas, emergency alert systems

Disinfection systems, Clean-in-place (CIP) systems, Water systems. After that we

enter in industry waiting room. We look there a chart of organizational structure.

MD

GM

DEPUTY

MANAGER

PRODUCTION

MANAGER

ENGINEER

MANAGER

HR MANAGER

FINANCE

MANAGER

PRINTING

MANAGER

SHIFT INCHARGE

SUPERVISOR

WORKER

SHIFT ENGINEER

WORKER

SENIOR

EXECUTIVE

EXECUTIVE

ADMIN

IT

SENIOR

EXECUTIVE

SUPERVISOR

WORKER

21

Vijay k. Chauhan is the Chairman& MD of Parle industry.

Parle industry follows the Japanese 5s theory. The 5s theory is Gateway to Quality,

Productivity, and Safety.

Seri (Say ree) - Sort and Discard

Eliminate All unneeded items.

Seiton (Say ton) - Arrange and Order

Arrange all items that are left.

Seiso (Say zo) - Clean and Inspect

Clean all areas.

Seiketsu (Say ket soo) - Standardize and Improve

Maintain the first 3S

Shitsuke (Shee tsoo kay) - Believe and Discipline

Believe that the 5S are important.

22

A parson with a formal industrial uniform appoint to us for industrial visit. He told us

all the process of manufacturing biscuits.

He told us these processes step by step. He also gives the answers of our question.

The Parle industry, NEEMRANA manufacturing PARLE G biscuits. So he told how

the Parle G biscuits manufacture?

Parle-G making process

MIXING: This is a process where all ingredients are put together in right proportion for

dough formation. These ingredients are then fed into Mixers where mixing is done and

dough is prepared for molding .Major ingredients are flour, fat, sugar and others as per the

product one would like to have.

MOULDING: In this section we laminate the dough into sheet which then passes down to

gauge rollers and sheet thickness achieved for cutting. Here we have a cutter or a molder

as per the variety where one gets the shape and sizes of biscuits.

BAKING: This is the area where we pass these mounded wet biscuit into baking oven.

The oven temperature is 230°C. The biscuits are baked on desired temperature. The oven

which are use very effective.

COOLING: These baked biscuits are then passed on to cooling conveyors for natural

cooling prior to packing .The temperatures are brought down to room temperatures.

23

PACKING: These biscuit are then stacked and fed into packing machine for packing.

Different packing material are available for packing of these biscuit in different packs

.slug packs, pouch pack or family packs etc. These packs are then put into secondary

packaging like cartons to be transported to retailers.

EQUIPMENT USED FOR AUTOMATED BISCUIT MANUFACTURING

Mixers

Laminators

Gauge Rolls or Pre Sheeters

Molder / Cutter

Baking Oven

Cooling Conveyor

Packing Machines

Material Handling Equipments

Biscuit / Sugar Grinder

Milk/Oil Sprays

Salt / Cashew Sprinklers

INGREDIENTS USED

Flour , Fat , Sugar , Salt , Ammonium bicarbonate , Milk , Butter , Flavors , Emulsifiers ,

Invert syrups, Dough Improvers and many additives.

24

Process of packing paper printing

Plain BOPP (Bi oxalic polypropylene)

↓ Printed by ink

↓ Inspection (defect eliminator)

↓ Lamination (Lamination & opaque BOPP with adhesive)

↓ Curing Room (Lamination reel treated at 45-50°C for curing) ↓ Slitting (Lamination reel sited in roll form as per requirement)

↓ ↓ Ok not ok

↓ ↓

Dispatch to store ← Doctoring

25

After all the process we go to in next candy manufacturing plant of Parle. In this plant Parle manufacturing two type candies.

1. Lacto bite 2. Kaccha Mango Bite

Candy Manufacturing

This is candy manufacturing process:

o Candy Mixing and Cooking

o Candy Aerating

o Candy Molding

o Candy Stamping

o Candy Drawing

o Candy Cooling

o Candy Coating

o Automatic Decorators

Candy Mixing and Cooking

Cooking vats are used for candy mixing and cooking. They are sophisticated pieces of

equipment and can be integrated with mixers and cookers. These types of machines are

often used in hard candy and chocolate candy manufacturing. They have variable speed

agitators, hydraulic lifts, digital temperature controllers with alarms, sophisticated

atmospheric gas burners as well as tilting functions. The vats are often insulated and

designed of foam fitted aluminum without rivet joints. They are one of the first pieces of

equipment used in many candy manufacturing processes.

Candy Aerating Marshmallows, snowballs and aerated chocolate are examples where aeration technology

would be used. Each application can use a specifically designed mixing head. These

devices also facilitate perfect temperature control during the aeration process.

26

Candy Molding

Three popular molding techniques include polycarbonate injection molds, thermoformed

spinning molds and silicone rubber molds. These types of molds are often used in the

manufacture of chocolate candy.

Candy Stamping

stamping is done with dies that cut the candy to shape from a slab. An example is in the

manufacture of chocolate or taffy.

Candy Drawing

The drawing of candy is similar to the drawing of metal or plastic. A candy bullion is

pulled through a series of dies reducing it in size or forming its perimeter to a shape. The

dies can be temperature controlled to help in the process.

Candy Cooling

Cold water is often used to cool the equipment that actually is in contact with the candy.

Through this the candy is kept cool as it is manufactured. An example is in the cooling of

forming and drawing dies. Other solutions include the use of a refrigerant.

27

Candy Coating Enrobe machines are used for coating candy. For example the delicious thin coating found

on chocolate coated cookies or a candy bar is often applied by an enrober. Some of these

machines are extremely sophisticated and can be quite large. They are of manufactured

from stainless steel and designed to run 24/7. They contain pump units and high end ones

are packed with advance electronics to optimize chocolate consumption minimizing

waste. This can be a big money savor.

Automatic Decorators These machines as the name indicates are used in decorating candies and cakes. The

decorators apply icing or chocolate designs on cookies, cakes, other baked items and

chocolates. Designs range from thick to thin, zig zags to curves, straight lines to single

and double loops, cross-hatching and random designs. Designs can often be changed

rapidly to afford a variety of decorated product. Decorators can be often custom designed

to fit most speeds and sizes of conveyors or enrobes.

Candy Wrapping and Packaging wrapping machines are another category of candy manufacturing equipment. Some

wrapping machine manufactures also offer art work consulting as a service. This allows

the customer to custom design a wrapping for their candy as well as wraps it. An example

might be a foil holiday wrapper for a chocolate candy product. Also fitting into this class

of manufacturing equipment is high speed packing equipment and sealers. These solutions

include completely automated packaging systems capable of denesting, filling, tray

sealing, sleeving and cartooning. Some leading edge automated systems can seal at a top

speed of 400 ppm and load 800 bars per minute.

28

After visiting all the plants we all the students go to Auditorium of Parle.

This Auditorium specially made for visitors. It‟s well furnished and all the facility

available in this Auditorium like computer system, projector, and Air conditioner.

400 to500 sitting capacity in this Auditorium.

Senior officers S.K. Jiana coordinate the program. He has given more knowledge about

Parle. He told us that the Parle is not a industry. This is a family.

They called “PARLE PARIWAR”. Because the working condition of Parle is very open

and creating a family environment. Every member of Parle working with effectively and

efficiently so they achieve their targets. In Parle family many types of activities conducted

day by day. Example Yoga, sports, cultural programs. Yoga is necessary for every member

of Parle.

After the entire thing we saw animated movie. It is based on Parle history and about all the

process of making Confectionary. We enjoy the movie. After that some cultural events

organized by all the students.

Example: - solo song, group dance and acting. We enjoy all the movements.

Then Mr. S.K. Jaina told a dream fixing plan.

After the entire thing our Principal DR. R.K. SHARMA give a feedback and PARLE

family give a certificate to our institution.

29

ABOUT 5S JAPANESE THEORY

When Japanese industry was in its infancy stage, the Japanese market was too small to

absorb the increasing domestic production. Japan needed a global market in order to

further develop. By creating an export market, Japan was able to structurally transform its

economy, thereby granting it access to the technology it needed to develop.

The Japanese goal became one of full employment through industrialization. This called

for dominating the market in very select product areas. They carefully chose areas in

which they had the confidence to dominate and concentrated on them rather than diluting

their efforts over many areas.

A number of tactics were utilized to support this strategy. First of all, the Japanese

imported their technology, thus avoiding the risks involved with major R&D expenditures.

Instead, they negotiated license agreements to make workable new products. Then the best

engineering talent was directed to the plant floor rather than to the product design

department, thereby concentrating their ingenuity on high productivity and low cost rather

than innovative design. Finally, they strove continuously to improve quality and reliability

to the highest possible levels and then beyond; to levels competitors could not or would

not supply. Implementation of these tactics was guided by a solid respect for people and

the belief that waste must be eliminated (these two areas are discussed in depth below).

The Japanese example of success shows that neither massive research and development

investment nor abundant natural resources is necessary for sustainable industrial

development. For years Japan was well known as an imitator not an innovator as they

copied, borrowed, and licensed technology from other countries. By building competence

in adapting existing product designs and speeding up the processes the Japanese were able

to manufacture superior quality at competitive prices, giving them a distinct advantage in

world markets.

Japan showed the world that efficient production and quality control methods could

overcome transportation cost disadvantages and tariff costs. They proved that cultural

30

differences could be overcome and that the critical cultural points necessary for successful

production could be transferred across national boundaries.

Japan's success as an economic superpower strongly implied that the West might lose its

world dominance as the leader in technology. Emboldened by the success of the Japanese,

other Pacific Rim countries began to follow their example, thus accelerating the diffusion

of innovative technology through-out the industrial world. Actually, new centers of

industrial superiority were created as a result.

Japan's success is also an indicator of the importance of quality as a strategic variable.

When it looked like Japan could only hope to carve out a niche as a producer of outdated

Western goods for the Asian market, Japanese leadership came to the conclusion that it

could play a leading role in global industry by changing its quality image; a change made

by producing quality goods for a sustained period of time. The Japanese learned from the

price they paid for their reputation for inferior-quality products. They learned that quality

reputations are built by producing quality products with a painstaking attention to detail

and craftsmanship. They were also willing to make the necessary investment in human

resources and technology needed to improve their quality image.

Synonymous with the improvement in quality was a profound improvement in Japan's

position in global markets. From a weak position in the television market in the 1960s,

Japan became the world's largest producer and exporter of household television sets in the

world. They are sure to dominate the market for the coming revolution in high-resolution

television. They totally dominate the VCR market and are challenging companies such as

Intel in the market for large-scale integrated circuits.

In the early 1960s North American, British, and German motorcycle manufacturers lead

the market. Today, Harley-Davidson is the only serious competitor for Japanese made

motorcycles. In fact, Harley-Davidson teetered on the brink of nonexistence until

wholeheartedly adopting Japanese manufacturing techniques, most notably just-in-time

and Total Quality Management. Another example, Xerox, suffered embarrassing market

share losses to Japanese manufacturers Canon, Sharp, and Minolta.

31

The emphasis placed on quality by Japanese manufacturers has been continuous since the

inspiration derived from the first visit of Dr. W. Edwards Deming. Today, Japan is

certainly seen as the worldwide symbol of quality. While Western firms measure quality in

parts per thousand (the acceptable quality level or AQL), the leading Japanese

manufacturers are achieving defects that are barely measurable, perhaps 3.4 defective parts

per million. The Japanese turnaround in quality can clearly be attributed to such variables

as worker training, employee involvement, and firm wide delegation of authority and

responsibility for quality. A change in attitude and vision on the part of Japanese top

management brought quality to the forefront as a strategic mission, one that allowed them

to liberate the creative talent and resources necessary for long-term improvement and the

eventual mastery of the quality concept

RESPECT FOR PEOPLE

There are a number of facets to the Japanese respect for and treatment of workers. One of

the most prominent is lifetime employment, which gained notoriety from William Ouchi's

book "Theory Z". When many Japanese workers are hired for permanent positions in

major industrial firms, they can generally consider it a job for life. However, this kind of

benefit applies only to permanent workers, about one-third of the Japanese workforce. It is

felt that if workers can stay with one firm for life, they more easily identify with the firm's

goals and objectives.

Unlike the case for American labor unions, workers who are members of Japanese labor

unions identify more with the company than the type of work they are doing. Also,

Japanese unions tend to share the management's view. The better the company performs,

the more the worker benefits. As a result, Japanese management believes in giving the

workers more opportunity to expand their job boundaries rather than waiting until the

worker proves himself. The Japanese also spend more on education and training, for all

levels, than any other industrial nation. Also, because the Japanese believe that robots free

people for more important tasks, they have invested heavily in robotics and automated

equipment, making theirs perhaps the most automated manufacturing sector in the world.

32

Another area in which Japanese management has successfully tapped into worker potential

is in the use of small group improvement activities (SGIA). One example is quality circles,

a small group of volunteer employees who meet once a week, on a scheduled basis, to

discuss their functions and the problems they are encountering. They then propose

solutions and make a sincere attempt to implement real change.

Finally, the Japanese believe in what they call "bottom round" management. This concept,

sometimes called consensus management or committee management, is an innate part of

Japanese culture. It involves a slow decision-making process that attempts to reach a true

consensus rather than a compromise. While the decision-making process is slow the

implementation process is quite fast.

ELIMINATION OF WASTE

When the Japanese say elimination of waste they mean anything other than the absolutely

essential minimum amount of workers, equipment, and materials necessary to meet

demand. This means no safety stock, no inventory stored for use in smoothing production

requirements, and so forth. If it can't be used right now it is considered waste.

A number of concepts are central to this idea of waste elimination. Instead of building a

large manufacturing plant that does everything, the Japanese tend to build small plants that

are highly specialized and form them into focused factory networks. It is difficult to

manage a large facility; the bigger it is the more bureaucratic it tends to be. Bureaucracy is

not conducive to the Japanese style of management. Also, a specialized plant can be more

economically constructed and operated.

Along with the idea of smaller plants, the Japanese make considerable use of group

technology. Japanese engineers examine each operation required to make a part and

attempt to group dissimilar machines into clusters designed to be work centers for a given

part or family of parts, thus eliminating or at least greatly shortening the time necessary for

set-up and changeover.

Just-in-time (JIT) production is an important part of waste elimination. In fact, JIT has

often been defined as the elimination of waste. JIT is the production of precisely the

33

necessary unit in the correct quantity at the correct time in order to maintain perfect

performance to schedule. Over producing is considered just as bad as under producing

since unnecessary inventory would be wasteful.

In order for JIT to work effectively, production must flow smoothly. Any changes can

cause disturbances in the flow, which can be amplified throughout the supply chain,

causing disruptions and delays. In order to ensure a more uniform flow, the Japanese adopt

a uniform plant load. This means that they simply plan to build the same mix of products

each day. If you run some of everything you need each day, it only takes one day before

you have more (as opposed to large lot sizes which tie up capacity for lengthy periods,

causing delays in shipping).

Uniform plant loading requires that everything be produced in small lot sizes, implying

that the number of set-ups required will increase. The principle of economic order quantity

(EOQ) states that as lot sizes increase set-up costs decrease but as lot sizes decrease set-up

costs increase. Therefore, this emphasis on small lots requires that set-up times be

minimized. Instead of taking established set-up times as a given, the Japanese have

managed to reduce set-up times tremendously, often to the point of single digits (i.e., less

than ten minutes).

The Japanese also use a self-regulating system for production control known as kanban. It

uses dedicated containers and recycles traveling requisitions/cards (often known as

kanbans themselves) to regulate the system. It is also referred to as a "pull" system since

the authority to produce or supply comes from downstream operations.

Finally, the Japanese utilize a number of quality control techniques to ensure maximized

quality and minimized waste. Among these are jidoka, bakayoke, and poka-yoke.

Jidoka is a quality concept that means "stop everything" whenever an error occurs. It is

controlling quality at the source. Instead of using inspectors to find problems someone else

created, the Japanese worker is his own inspector, responsible for his/her own quality.

When an error or defect is discovered, the worker has the authority and the responsibility

to halt the production process. Usually, this is controlled by some mechanism such as push

34

buttons. When the line stops, lights flash, bell ring, and flags wave as all attention is

directed at the problem.

The Japanese also believe that, whenever possible, inspection should be performed by a

machine, for the sake of speed and accuracy. A technique known as bakayoke is used for

this purpose. Bakayokes are devices that are attached to machines to automatically check

for abnormalities in the process, such as malfunction or tool wear, as well as measuring

dimensions and warning when tolerances are close to being exceeded. For manual

assembly, the Japanese utilize poka-yoke or mistake proofing.

Today, all these Japanese techniques have been repackaged and are now know as "Lean"

management techniques. Even though JIT, kanban, and other tools have not changed in

their application, the new "lean" label has removed some of the Japanese stigma and has

made the tools more palatable. With the introduction of the lean label has also come a

broader application of these principles to where they are now being used in the service

sector and in the front office, with the same high degree of success.

JAPANESE KEIRETSU

A keiretsu is an organizational structure unique to Japanese major corporations. While not

all major Japanese businesses are keiretsu, most of Japan's major corporate entities are.

Moreover, the influence of the keiretsu on the Japanese business world is important even

to non-keiretsu organizations. There are two types of keiretsu: the classical keiretsu and

the vertically integrated keiretsu.

The so-called Big Six Japanese business groups are all examples of classical keiretsu.

These are the Fuyo/Fuji Group, Sumitomo, Sanwa, Mitsui, Mitsubishi, and Daiichi-

Kangyo Ginko. Classical keiretsu are bank-centered with no specific central industry.

While not considered classic keiretsu, many major single-industry companies in Japan are

increasingly becoming viewed as vertical keiretsu. These include Hitachi, Toyota, Nissan,

Toshiba, and Matsushita. These keiretsu are more pyramid-shaped, with a single industry

or company at the pinnacle of the pyramid and the member companies collected beneath.

35

KEIRETSU DEFINED

Japan's keiretsu are not single entities. Each keiretsu is formed of an interdependent

collection of individual firms woven into a common enterprise. In this, the keiretsu are

similar to the Korean chaebol, but there the similarities stop.

The keiretsu form a type of family of member companies, each connected to the others

through cross-share holder ship. In other words, each company within the keiretsu holds

significant shares of stock in each of the other keiretsu members. The companies remain

independent of each other, and are not subsidiaries of holding companies, as holding

companies were outlawed after World War II.

Additionally, the size of the keiretsu corporate families can be deceptive. Most keiretsu

have well over 100 members, while many far exceed that amount. Hitachi alone has over

680 member firms and subsidiaries. While shareholder control is coordinated, technically

the stock of each member firm in the keiretsu can be traded independently.

Table 1. 5S Definitions

Japanese Term English Equivalent Meaning in Japanese Context

Seiri Tidiness Throw away all rubbish and unrelated

materials in the workplace

Seiton Orderliness Set everything in proper place for

quick retrieval and storage

Seiso Cleanliness Clean the workplace; everyone should

be a janitor

Seiketsu Standardization Standardize the way of maintaining

cleanliness

Shitsuke Discipline Practice 'Five S' daily - make it a way

of life; this also means 'commitment'

36

Seiri

The first step of the "5S" process, seiri, refers to the act of throwing away all unwanted,

unnecessary, and unrelated materials in the workplace. People involved in Seiri must not

feel sorry about having to throw away things. The idea is to ensure that everything left in

the workplace is related to work. Even the number of necessary items in the workplace

must be kept to its absolute minimum. Because of seiri, simplification of tasks, effective

use of space, and careful purchase of items follow.

Seiton

Seiton, or orderliness, is all about efficiency. This step consists of putting everything in

an assigned place so that it can be accessed or retrieved quickly, as well as returned in that

same place quickly. If everyone has quick access to an item or materials, work flow

becomes efficient, and the worker becomes productive. The correct place, position, or

holder for every tool, item, or material must be chosen carefully in relation to how the

work will be performed and who will use them. Every single item must be allocated its

own place for safekeeping, and each location must be labeled for easy identification of

what it's for.

Seiso

Seiso, the third step in "5S", says that 'everyone is a janitor.' Seiso consists of cleaning up

the workplace and giving it a 'shine'. Cleaning must be done by everyone in the

organization, from operators to managers. It would be a good idea to have every area of

the workplace assigned to a person or group of persons for cleaning. No area should be

left uncleaned. Everyone should see the 'workplace' through the eyes of a visitor - always

thinking if it is clean enough to make a good impression.

Seiketsu

The fourth step of "5S", or seiketsu, more or less translates to 'standardized clean-up'. It

consists of defining the standards by which personnel must measure and maintain

'cleanliness'. Seiketsu encompasses both personal and environmental cleanliness.

Personnel must therefore practice 'seiketsu' starting with their personal tidiness. Visual

management is an important ingredient of seiketsu. Color-coding and standardized

coloration of surroundings are used

for easier visual identification of anomalies in the surroundings. Personnel are trained to

detect abnormalities using their five senses and to correct such abnormalities immediately.

37

Shitsuke

The last step of "5S", Shitsuke, means 'Discipline.' It denotes commitment to maintain

orderliness and to practice the first 4 S as a way of life. The emphasis of shitsuke is

elimination of bad habits and constant practice of good ones. Once true shitsuke is

achieved, personnel voluntarily observe cleanliness and orderliness at all times, without

having to be reminded by management.

5s Principles of Japanese Management Dear Friends,

I need to prepare a ppt on the "5s of Japanese Mgt ie: the principles of :

1) Seiri - sort

2) Seiketsu - sanitize

3) Seiso - Sweep

4) Seiton -Systematize

5)Shitsuke - Self discipline

Why you need this product ?

The 5S concept has its origin in Japan (first within Toyota) in the later part of 20th

century. Each of the five S's denote the first letter of five Japanese words (Seiri, Seiton,

Seiso, Seiketsu, and Shitsuke) that outline the steps involved in modern workplace

management / housekeeping.

The logic behind the 5S practices is that organization, neatness, cleanliness,

standardization and self-discipline at the workplace can help production of high quality

products and delivery of high quality services with little or no waste, and with high

productivity.

The 5S has become the way of doing business not only to impress the customers but also

to establish effective quality processes as prerequisites for good products and services.

You may carryout the 5S training and implementation separately or as part of

ISO9001:2008 / Lean Manufacturing / Six Sigma implementation.

With its universal appeal, 5S can be effectively implemented in any organization from any

business sector.

38

39

.ANALYSIS

After visiting the PARLE factory for preparing a project report we analyzed that the

best selling branded biscuit company offers its customers with large variety of

biscuits (parle-g, krack-jack, Monaco, hide and seek etc.), confectionaries

(mangobite, melody, poppins) and snacks (Musst bites)

It aims “TO SERVE PEOPLE AND NATION”

The privately owned self financed company provides motivation and confidence to

its staff and other related members by providing various facilities and organizing

certain events. It has a very open work culture. The atmosphere is so comfortable

and relaxed that helps in increasing productivity and efficiency. It lunches and

outstation team-building exercises that augment inter-personal relations and mutual

understanding.

Parle has found its way into the Indian hearts and home. It spreads happiness and

joy among the people of all ages.

As one comes to visit their plant, they welcome them whole-heartedly and

cooperate with them in the best way they can. They are the strict followers of

Japanese culture.

40

41

SWOT ANALYSIS OF PARLE PRODUCTS

STRENGTH

1. Low price as compared to

competitors

2. Sizeable market share in the

country.

3. Offers variety of products

under its brand.

4. Different sizes of packets are

available.

5. An experienced team of sales

and marketing executives.

6. Deep and effective coverage

7. Largest distribution system.

WEAKNESS

1. Breakage of biscuits while

delivering to retailers

2. No proper replacement

system for broken biscuits to

retailers

3. Improper and irregular

supply.

4. Fewer shares in Premium

biscuit market.

5. Dependent on its flagship

brand, Parle-G

6. Poor packaging in family

pack of glucose biscuits.

7. Lack of schemes for retailers

and distributors.

OPPORTUNITY

1. Rising demand for innovative

packaging in packaged foods.

2. Retaining loyal retailers or

wholesalers.

3. Improving supply system for

established brands.

4. Huge scope for some Parle

products in medical shops.

5. Information revolution brought

about by the television.

6. Good scope for snacks and

namkeens, if launched and

properly promoted by Parle.

THREAT

1. Highly advertised brands such

as Britannia.

2. Ever increasing competition

from multinationals and local

companies.

3. Increase in sale of cheap local

bakery products.

4. Emerging substitutes like

wafers, snacks and toast.

5. Margin war among the major

Brands

42

43

CONCLUSION

After visiting the factory, we found that Parle is the biggest biscuits and hard

boiled candy manufacturing industry.

We also concluded that Parle is the first preference of both the customers and

retailers (Organized and unorganized both) because of its price and brand image.

Brand Parle G dominates the volume-dominated biscuit market. Even in today‟s

times when multinationals are beefing up their operations and trying to change the

dynamics of the market, Parle G‟s numero uno position is unchallenged. Its

competitors have roped in superstars like King Khan and Sachin Tendulkar, but

Parle G has only gone from strength to strength. Brand Parle G is iconic and has

evolved over the years. Trust, relevance, affordability are its hallmarks, which have

withstood pressures from the hyper-competitive marketplace.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,

Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite enjoy

a strong imagery and appeal amongst consumers across the world. Which has

resulted into Parle-G being the “world‟s largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating

and catering to new tastes PARLE-G has built its reputation. This can be seen from

the success of its new brands such as Mazelo, Imli Bite etc.

Parle Products Pvt Ltd., is now lagging in services to retailers because of improper

supply and distribution in some areas and competitors taking advantage of these

points

44

BIBLIOGRAPHY

I. PARLE INDUSTRY, NEEMRANA

II. Reference Book: PHILIP KOTLER & KELLER KEVIN LANE

III. Websites:

Google search: (www.google.com)

Wikipedia search: (www.wikipedia.com)

www.parleproducts.com