Project On Fifo of Comapny
Project On Fifo of Comapny
Project On Fifo of Comapny
On
By
HARSHIT BHADANA
A0101918182
Dr Ruchika Nayyar
DECLARATION
a
Title of summer internship
I declare
(a) That the work presented for assessment in this summer internship Report is my own, that
it has not previously been presented for another assessment and that my debts (for words,
(b) That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.
Date: ……………
Harshit Bhadana
A0101918182
MBA (Class of 2020)
b
CERTIFICATE
The report has been checked for Plagiarism and is within limits of acceptance.
c
ACKNOWLEDGMENT
d
Table of Content
1. DECLARATION
2. CERTIFICATE
3. ACKNOWLEDGEMENT
4. INTRODUCTION
4.1. TIMELINE
4.2. VISION
5. OBJECTIVE OF THE PROJECT
6. LITERATURE
6.1. PRODUCTION FUNCTION
6.2. PRODUCTION PLANNING AND CONTROL
6.2.1. STEPS IN PPC
6.2.1.1. PRODUCTION PLANNING
6.2.1.1.1. PLANNING
6.2.1.1.2. ROUTING
6.2.1.1.3. SCHEDULING
6.2.1.1.4. LOADING
6.2.1.2. PRODUCTION CONTROL
6.2.1.2.1. DISPATCHING
6.2.1.2.2. FOLLOW UP
6.2.1.2.3. INSPECTION
6.2.1.2.4. CORRECTIVE
6.3. FIFO
7. METHODOLOGY
8. COMPANY PROFILE
9. QUESTIONNAIRE AND ITS INTERPRETATION
10. PRODUCTION PLANNING AND CONTROL
11. FINDINGS
12. CONCLUSION
13. RECOMMENDATIONS
14. REFERENCES
e
INTRODUCTION
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N R Industries was established in June, 1995 based on the principle of quality and customer
satisfaction. It is based in Gurgaon, India. It was established with a vision to provide the best
Quality plastic parts and wire forming components to the customer.
N R Industries is a provider of cutting edge plastic technology solutions with 20+ years of
experience.
They service multiple Fortune 500 clients in the Automotive, Lighting & Industrial segments.
N R Industries is an end to end solution provider, assisting our global clients with product design,
tool design & development, injection molding & complete assemblies. They are leaders in molding
precision components with complex requirements for demanding applications.
Working with Japanese, American & European customers over 2 decades has helped them instill a
disciplined work culture which is entirely quality driven and which imbibes best practices from
different production systems.
It is for this reason that they have maintained consistent 0 ppm performance with many of our
clients. On the back of consistent performance and long-term strategic partnerships with our
customers, N R Industries has an enviable track record of 35% CAGR since inception.
TIMELINE
1. 1995 – N R Industries was started with 2 Automates with precision machined parts as its forte
2. 2000 – Achieved ISO 9001:2000 certification
3. 2002 – Achieved Turnover of INR 1 Crore
4. 2004 – Added CNC wire forming to the its processes
5. 2005 – Achieved Turnover of INR 5 Crore
6. 2008 – Achieved ISO 9001:2008 Certification
7. 2008 – Added Injection Moulding to its processes
8. 2014 – Achieved Turnover of INR 10 Crores
9. 2016- Achieved TS standard of system certifications
10. 2018- Achieved IATF16949:2016 Certification
11. 2018- Achieved Turnover of INR 20 Crores
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VISION
Customer satisfaction through persistence, endurance and strong belief in constantly improving our products
and services define our core Business Strategy and Vision. We strive to be attentive listeners and respond
passionately, swiftly and positively to bring customer delight first time, every time.
To continuously challenge us and set new and higher benchmarks for supplying high precision
products at superior quality level, competitive prices and 100% on time with best in class
development lead times.
To delight customers by always delivering on our commitments and to become their supplier of
choice
To strive for continuous improvement in our operations through innovation and set the
benchmarks for manufacturing excellence
To develop products in anticipation of client’s needs and be at the forefront of deploying latest
technologies
By treating all employees with compassion and ensuring their health and safety, integrity to
employees and suppliers
By dealing with integrity with customers, suppliers and customers
By committing ourselves to the environment and honouring all laws of land.
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LITERATURE
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PRODUCTION FUNCTION
After taking the entrepreneur step, then comes setting up the location for the production site and
setting up the plant.
Once all this done, now the owner has to step in to the shoes of a production manager and tries to
apply all his skills to production function of his company.
Production is a process in which the raw material is processed into semi-finished goods or finished
goods which thereby adds value to the utility of products, which can be measured as the difference
between the value of inputs and value of outputs.
Materials
SUPPLIER CUSTOMERS
Machines
(Raw Materials) (Finished products)
People
P
Production function covers activities like procurement, allocation and utilization of resources.
The main target of production function is to produce quality goods and services demanded by the
customers in the most timely and cost effective manner.
Therefore the production function of any industry is to be handled in a very effective manner, which
involves managerial decisions regarding the design of the product and the production system. These
decisions will lead to efficient production processes and production planning and control.
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PRODUCTION PLANNING AND CONTROL
Once the decisions regarding the product design and production processes have been taken, the next
step that comes into play is PRODUCTION PLANNING AND CONTROL.
This function is required for efficient and economical production of goods and services
Planned production helps in the ability to look ahead, organize and coordinate among all the
processes required for production.
Having plenty of driving forces, capacity to lead and ability to supervise and coordinate work among
the associates are some of the good quality of a good production manager.
A good production manager would simulate his/her associates by means of a programme of human
relation and organization of employees.
This function generally involves the organization and planning of manufacturing process. Especially
it consists of the planning of routing, scheduling, dispatching inspection and coordination, control of
materials, methods machines, tools and operating times. The ultimate objective is the organization of
the supply and movement of materials and labour, machines utilization and relayed activities, in
order to bring about the desired manufacturing results in terms of quality, quantity, time and place.
Production control in an industry is necessary tool required for efficient survival. Planning initiates
action while control is an adjusting process, providing corrective measures for planned development.
Production control regulates and stimulates the orderly how the materials in the manufacturing
process from the beginning to end.
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PROCEDURE FOR PPC
PPC (Production planning and control) is a process that comprises the performance of some critical
function on either side i.e. planning as well as control.
Production
Planning and
Control
Production Production
Planning control
Planning Dispatching
Routing Following Up
Scheduling Inspection
Loading Corrective
PRODUCTION PLANNING
It is defined as the technique of foreseeing every step in a long series of separate operations.
PLANNING
It is the basic step of Production planning. It’s about foreseeing each step to be taken at the right time
and in the right place and each operation to be performed in maximum efficiency. It helps the
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production manager to calculate the quantity of man power, machine and money required for
producing products at maximum level of efficiency.
ROUTING
Under this, the operations, their path and sequence are established. To perform these operations the
proper class of machines and personnel required are also worked out. The main aim of routing is to
determine the best and cheapest sequence of operations and to ensure that this sequence is strictly
followed.
Routing procedure involves following different activities:
1. An analysis of the product to determine how to make the product
2. To determine the quality and type of raw material to be procured
3. Determining the manufacturing processes involved and their sequence
4. Determining the minimum quantity that can be manufactured
5. Determining the amount of scrap that will be generated
6. Analysing the cost involved in production
7. Standardisation of manufacturing processes involved.
SCHEDULING
It means working out of time that should be required to perform each operation and also the time
necessary to perform the entire series as routed, making allowances for all factors concerned. It
mainly concerns with time element and priorities of a job. The patter of scheduling differs from one
job to another which is as explained as below:
Production schedule:
The main aim is to schedule that amount of work which can easily be handled by plant and
equipment without interference. It is not an independent decision as it takes into account following
factors:
1. Physical plant facilities of the type required to process the material being scheduled.
2. Personnel who possess the desired skills to experience to operate the equipment and perform
the type of work involved.
3. Necessary materials and purchased plants.
Master schedule:
Scheduling usually starts with preparation of master schedule which is weekly or monthly break-
down of the production requirement for each product for a definite time period, by having this as a
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record of total production requirement the production manager is in better position to shift the
production from one product to another as per the changed production requirements.
This forms a base for all subsequent scheduling activities. A master schedule is followed by operator
which fixes total time required to do a piece of work with a given machine or which shows the time
required to do each detailed operation of a given with a given machine or process.
Manufacturing Schedule:
It is prepared on the basis of type of manufacturing process involved. It is very useful where single
or a few products are manufactured repeatedly at regular intervals. Thus it would show the required
quality of each product and sequence in which the same to be operated.
LOADING
The next step is the execution of the schedule plan as per the route chalked out in includes the
assignment of the work to the operators at their machines or work places. So loading determines who
will do the work as routing determines where and scheduling determines when it shall be done.
Gantt charts are most commonly used in small industries in order to determine the existing load and
also to foresee how fast a job can be done. The usefulness of their technique lies in the fact that they
compare what has been done and what ought to have been done. Most of a small scale enterprise
fails due to non-adherence to delivery schedule therefore they can be successful if they have ability
to meet delivery order in time which no doubt depends upon production of quality goods in right
time.
It makes all the more important for production manager to judge ahead of time what should be done,
where and when thus leave nothing to chance once the work has begun.
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PRODUCTION CONTROL
Production control is the process of planning production in advance of operations, establishing the
extract route of each individual item part or assembly, setting, starting and finishing for each
important item assembly or the finishing production and releasing the necessary orders as well as
initiating the necessary follow-up to have the smooth function of the enterprise.
The production control is of complicated nature in small industries.
The production planning and control department can function at its best in small scale unit only when
the work manager, the purchase manager, the personnel manager and the financial controller
assisting planning production activities.
The production controller directly reports to the works manager but in small scale unit, all the three
functions namely material control, planning and control are often performed by the entrepreneur
himself.
Production control starts with dispatching and ends up with corrective actions.
DISPATCHING
5. Movement of work from one operation to another in accordance with the route sheet.
Every production Programme involves determination of the progress of work, removing bottlenecks
in the flow of work and ensuring that the productive operations are taking place in accordance with
the plans. It spots delays or deviations from the production plans. It helps to reveal detects in routing
and scheduling, misunderstanding of orders and instruction, under loading or overloading of work
etc. All problems or deviations are investigated and remedial measures are undertaken to ensure the
completion of work by the planned date.
Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of
production control.
Corrective measures: Corrective action may involve any of those activities of adjusting the route,
rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment,
control over inventories of the cause of deviation is the poor performance of the employees. Certain
personnel decisions like training, transfer, demotion etc. may have to be taken. Alternate methods
may be suggested to handle peak loads.
INSPECTION
This is mainly to ensure the quality of goods. It can be required as effective agency of production
control.
CORRECTIVE MEASURES
Corrective action may involve any of those activities of adjusting the route, rescheduling of work
changing the workloads, repairs and maintenance of machinery or equipment, control over
inventories of the cause of deviation is the poor performance of the employees. Certain personnel
decisions like training, transfer, demotion etc. may have to be taken. Alternate methods may be
suggested to handle peak loads.
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FIRST IN FIRST OUT (FIFO)
As the name suggests the FIFO is a technique used industry wide for inventory management and
efficient traceability for any product back it its raw material.
It’s an accounting tool, used to eliminate excess inventories in a plant. It helps in plan layout and
inventory management by using the simplest skills. This process requires least manpower.
By reducing the inventory the industries can make profits.
FIFO, LIFO and LEFO are some of the examples of such techniques used by industries to reduce
inventories and help make profits.
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METHODOLOGY
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It is a Qualitative Research done to explore and know about the implementation of FIFO and PPC.
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COMPANY PROFILE
N R INDUSTRIES, GURGAON,
The company started in 1995manufacture quality products for leading automobile companies. N R
Industries started operation in Gurgaon producing precision machines parts. Theirs products rolled
out of N R Industries factory at Gurgaon in India, august 1995.Today; there are 3 plants of N R
Industries that contribute to the Nations automobile sectors development. N R Industries
manufacturing and marketing facilities located at Gurgaon have been awarded TS 16949:2016
certification.
Committed to providing high quality products, invests significantly in technology resources and
infrastructure. The manufacturing facilities are spread across three states.
Highlights
% SALES
SANDHAR TECHNICO
AUTOMOTIVES 3%
4% A. G.
INDUSTRIES A. G. INDUSTRIES P. LTD
PVT. LTD HARYANA
PRICOL 25% HILEX
30%
LIFELONG INDIA PVT LD
PRICOL
HARYANA
SANDHAR AUTOMOTIVES
15%
TECHNICO
LIFELONG HILEX
INDIA PVT LTD 18%
5%
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ABOUT THE PLANT
Process held at the plant:
Plastic Injection Moulding
CNC wire forming
Precision Machined parts
Complete Assemblies
PRODUCTS
PRODUCTS
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PRODUCTS
CNC WIRE BENDING COMPONENTS
PRODUCTS
MACHINED COMPONENTS
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QUESTIONNAIRE AND ITS INTREPRETATION
No. of staff = 20
No. of responses = 10
No. male responder= 10
No. of female Responder= 0
Q1. Do you think production planning and control is central to the success of any manufacturing
unit?
Options Yes No
Response 10 0
Response
0
yes
no
10
Interpretation
All the respondents believed that PPC (Production Planning and Control) is central to the success of
any manufacturing process.
They believed that PPC helps in the best usage of resources to their maximum capacity
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Q2. Does PPC help in capacity planning that contributes to the efficient use of facility and
equipment’s?
Options Yes No
Response 8 2
Response
Yes
No
Interpretation
Most of the respondents i.e. 80% are in favor of the statement that “capacity Planning contributes to
the efficient use of facility and equipment’s. “Proper Capacity planning leads to optimum utilization
of capacity reduces idle time, under or over utilization of capacity.
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Q3. If yes, then which of the following suits best?
a) Inventory Control _________________
b) Economy in production time _________________
c) Ensure Quality _________________
d) Waste reduction and Increased Profit _________________
e) Optimum Utilization of Capacity _________________
Options A B C D E
Response 6 4 2 8 6
Response
10
9
8
7
6
5
4 10
Response
3 6
8
2 4
1
0 2
A
B
C
D
E
Interpretation
All respondents believe that PPC helps in waste reduction and increased profit, and some of them
believe that optimum utilization of capacity and Inventory control is another objective of Production
Planning and Control.
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Q4. Do you think that Production Planning and Capacity planning are interrelated?
Options Yes No
Response 7 3
Response
Yes
No
INTERPRETATION
Majority of the respondents i.e. 70% believe that production planning and capacity planning are
interrelated. Long term Production planning becomes the basis of capacity planning. Size of
production and type of production depends on capacity, hence both are interrelated.
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.Q5. Do you believe that mismatch in load and capacity is wrong PPC. If yes, then what are the
nearest options?
a) Increases the cost ___________
b) Hurts the ability to satisfy customer’s ___________
c) Lead time gets affected ___________
d) Other effects ___________
Options A B C D
Responses 9 10 0 2
Series 1
10
9
8
7
6
10 Series 1
5 9
4
3
2
2
1
0
0
A B C D
Interpretation
Almost all respondents believe in the above statement. According to them mismatch in load and
capacity, leads to customer dissatisfaction and increase in cost. If the capacity is low and demand is
high, orders will not be completed on time. If load is less and capacity is more than requirement it
will lead to inefficient use of capacity, hence, cost of production will increase. As lead time is
calculated on the basis of available capacity it has no effect on lead time. Other effects can be
increase in cost by increasing man power and plant maintenance, and delay in delivery to customers.
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Q6. On what basis do you plan your production?
a) Customer needs (demand) ___________
b) Target of Marketing Dept. ___________
c) Resources available ___________
d) Other factors ___________
Options a b c D
Response 8 0 10 0
Response
10
9
8
7
6
5
8 10
4 Response
3
2
1
0
0
a 0
b
c
d
Interpretation
According to the data collected from the respondents the production planning of N R Industries,
Gurgaon, is based on customer need i.e. dealers demand for particular models, and also on the basis
of resources available.
The marketing department reports to the PPC/Store about dealers’ requirements. PPC/Store
communicates with the material department about availability of material.
Hence, market demand and availability of resources is considered as base for production plans
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Q7. Do you feel or experienced “hung up” and “bottlenecks” in implementing Production Plans?
Option Yes No
Response 4 6
response
4
yes
no
6
Interpretation
Majority of the respondents i.e. 60% are in against of the statement, hence, all the department works
in integration.
Heads of all the department sits together and prepares plans which are properly applicable.
There are people who experienced bottlenecks like- sequence change due to non-availability of
material, and transforming one model to other due to requirement of specific model.
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Q8. How do current Production Planning and Capacity Planning methods account for bottlenecks.
Interpretation
Current production planning and capacity planning highly depends on material available and material
in transit. The non-availability of material and delay in transportation of material hinders execution
of plans properly.
Due to this too many changes in daily and weekly plans takes place. Sometimes lack of coordination
between PPC/Store, production department, and Quality control department creates problem of
rework and repair.
Q9. Previously what measures have been taken to avoid such bottlenecks?
Interpretation
As the main source of bottleneck is timely not availability of material. So, proper care is taken of the
material providers, transportation of material, and inventory of material.
Following measures have been taken to avoid such bottlenecks:
• Multiple vendors being developed for most of the items.
• Proper inventory level is being asked to maintain.
• Planning being done with the best availability of material
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Q10. If results are not according to the plans, what control measures are taken?
a) Revision of Plan
b) Any other measures.
response
Revision of plan
Any other measure
Interpretation
If the results are OK wait until next control period. If not OK, revision of plan is required to be done.
At present people of do not have any other solution except revision of plan to control deviations in
plans and results.
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PRODUCTION PLANNING AND CONTROL AT N R INDUSTRIES
Production plan is crucial to the success of any producing unit; it is an activity which is continuous in
nature and is required to be revised time to time as per the requirements.
It can’t be done in isolation by a particular department; rather it is an integrated activity done by
Planning and Control Department in collaboration with Material Department, Production
Department, and Quality Control Department.
The heads of various departments of N R Industries, Gurgaon sit together and Plans their monthly,
weekly, and daily production.
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PRODUCTION PLANNING AND MASTER PRODUCTION SCHEDULING
After the consent of marketing department and material department the monthly Production Plan and
weekly master production scheduling is done. A copy of main plan and master production schedule
is sent to each department.
Every day in morning the production head, quality head, and material head sits together, discuss their
problems, and unanimously prepares a daily production plan. This daily production plan is displayed
on planning board of every department and at every level of assembly line. This daily production
plan shows sequence of operations, sequence and schedule of material movement, post pending
material, pre pending material, and shortage of material. This daily plan is automatically get updated
with the completion of operations at every level.
CONTROL
If results are not according to the Daily Plans, the plan is required to be revised. Daily Production
Plan is revised number of times considering the material shortages, problems with assembly line etc.
If material is post pending i.e. on assembly line its operation can’t be changed, but, changes can be
made in the sequence and scheduling of pre pending material i.e. material in queue. Efforts are made
to plan a sequence which minimizes the idle time of assembly line, labor, and other equipment’s.
FINDINGS
The PPC department of N R Industries, Gurgaon, believes in making plans and decisions
unanimously, in cooperation with production department, marketing department, material
department, and quality control department.
So that a feasible plan can be made, executed properly, and optimum results can be achieved.
Hence, production planning and control is an integrated activity and can’t be done in isolation by any
particular department.
Following are the findings of this project about production planning and control activities of N R
Industries, Gurgaon:
1. Production Planning is an integrated activity and cannot be done in isolation by a particular
department.
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2. PPC helps in scheduling tasks and production runs and ensures production capacity does not
remain idle and there is no undue queuing of tasks via proper allocation of tasks to the production
facilities.
3. Proper PPC helps to resort to just- in- time systems and thereby reduce the overall inventory. It
enables to ensure that the right supplies are available at the right time.
4. PPC helps to reduce the cycle time and increase the turnover via proper scheduling.
5. PPC provide for adherence to the quality standards so that quality of output is ensured.
To sum up we may say that PPC and FIFO are of immense value to the entrepreneur in capacity
utilization and inventory control. More importantly it improves his/her response time and quality. As
such effective PPC and FIFO contribute to time, quality and cost parameters of entrepreneurial
success.
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CONCLUSION
After doing this project I am in position to conclude that N R INDUSTRIES has well defined and
structured production planning system.
PPC defines the sequences and schedules of operations; hence production planning contributes to the
efficient use of facilities and equipment’s.
PPC is done to identify production process which leads to reduced lead time; hence customer waiting
time is also reduced.
PPC and FIFO ensure optimum utilization of production capacity, material, and other equipment’s;
hence it leads to waste reduction and increased profits.
RECOMMENDATIONS
The production planning and control of N R Industries, Gurgaon, highly depends on the material
availability.
In case of shortage of material the overall plan get disturbed.
If such problem prevails the optimum results cannot be achieved.
To avoid such problem following measures can be taken:
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REFERENCES
BOOKS:
1. Harris, g, at tour, s, 2003 The National advertising practices of multinational companies; a content
analysis study. European journal of marketing volume 37, no ½; 154-168
2. Mackenzie, I.2004 English for business studies - A curse for business studies and economics
students. Cambridge, United Kingdom;
3. Nard, P.2003.doing Survey Research – A Guide to Quantitative Method.
WEBSITES:
1. www.wikipedia.org
2. www.nrindustries.com
3. www.iatfglobaloversight.org
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