Final operations management

Case Study on

Chemical Industries

BY:Anish Jain (I056)Aditi Goyal (I057)Prakhar Bhargava (I058)Shreya Galundia (I059)Tushar Gautam (I060)

• Founded: 1969• Founder: Dr. Karsanbhai Patel• Products: Consumer products (Soap, Detergents, Salt etc)

Industrial products (Soda Ash, Linear Alkyl Benzene, Sulfuric Acid etc.)• Plants:

• Porbandar (Gujarat)• Bhavnagar • Mehsana• Rajkot • Ahmedabad

Porbandar Plant

SODA ASH plantInvestment of Rs. 1140 CroresCapacity is 650,000 TPAEnergy efficient technology from AKZO,

NetherlandsOnly plant in world with full Distributed

Control SystemIndian Chemical Manufacturers

Association(ICMA) award for water management practice in chemical industry

Layout

Only one product is madeUses Product LayoutSequence of activitiesEfficiency is moreActivities are done in a sequenceMass production is doneStorage space is less Inflexible manufacturing

Tata Chemicals Limited

• Founded: 1939 • Founder: J.R.D. Tata• Products: Chemicals, Fertilizers & Crop Nutrition• Plants:

–Mithapur (Gujrat)– Babrala (UP)– Nanded (Maharashtra)– Haldia (West Bengal)

Mithapur Plant

• Location: Mithapur, Gujrat• Products:

– Chemicals: Soda ash, Chloro – Caustic Group, Marine Chemicals, Cement

– Consumer Products: Salt, cooking Soda

• Plant info:– Installed Capacity: 8,75,000 tpa– Largest Producers: Synthetic Soda Ash– 5 Star Rating from the British Safety Council

Mithapur Plants – Early Days

• Used Process Layout– Why ?

• Demand: not Stable• Volume: Low• High Flexibility• Workers: Varied Skills

• Need to Change the Layout– Addition of new Products– Addition of new Product Line– Efficiency: Low

Mithapur Plant - Today

• Uses Product Layout–Why ?• Demand: Stable• Volume: High• High Efficiency•Workers: Limited Skills

Comparison

•Mission:TATA CHEMICALS: Serving society through scienceNIRMA: Providing value for money to customers

•Operation Strategy:TATA CHEMICALS: Moved from Top Down perspective to

Market led perspectiveNIRMA: Moved from Top Down to Bottom Up approach

•Organization Type:TATA CHEMICALS: Externally Neutral & Externally SupportiveNIRMA: Internally Neutral & Internally Supportive

• Capacity: Tata Chemicals (Mithapur): 875,000 tpa Nirma : 650,000 tpa

Comparison

Competitive Priorities

• Cost• Quality• Flexibility