Final Assignment POM

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Production OperationManagement Final Term Assignment

Muhammad Ali

5/17/2012



Department of Management Sciences,

Superior University, Lahore

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Submitted to:

Submitted by:

Rabia Riffat 11527

Waseem Iqbal 11545

Mirza Shehzad Shouket 11541

Muhammad Faheem 11534

Mubashir Nisar 11540





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This is one of the greatest blessing of ALLAH, ALMIGHTY that able to complete this Production Operation Management Assignment.

Assignment would like to express their gratitude to

those who directly and indirectly helped them in the completion of this study. We are sure that this assignment will help us in future during our practice life .





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We dedicated our each and every effort to

Almighty Allah

The lord of lords

And

Holy prophet Hazrat Muhammad (PBUH)

The cause of the creation of the universe

Honorable and Respected Mr. Muhammad Ali

Whose kind guidance and encouragement helped us to reach at this

Stage

Our affectionate and loving Parents,

Whose guidance and prayers proved a beam of light?

In the darkness of life at every moment





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“TABLE OF CONTENT”

1) Executive Summary……………………………………………….

2) Introduction……………………………………………………..

i) History………………….

3) Production Process…………………………………………………..

i) MAIN RM SOURCE……………………………………………………

ii) Brass Store……………………………………………………….

iii) Tip Making Section………………………………………………

iv) Tip making Process…………………………………………………….

v) Ink Store………………………………………………………………

vi) Plastic Store………………………………………………………..

vii) Tube Making Section………………………………………………….

viii) Tube Making Process………………………………………………….

ix) Color, Plastic and Oil Mixing Process……………………………………

x) Injection Moulding/Manufacturing process of parts of pen………..

xi) Printing Process…………………………………………..

xii) Assembly Line……………………………………………………..

4) Capacity Analysis………………………………………………………………….

i) Barrels……………………………………………………………

ii) Pusher……………………………………………………………..

iii) Tube…………………………………………………………………….

iv) Tip………………………………………………………………………….

5) Location Analysis…………………………………………………………………………..

6) Quality Management Techniques………………………………………………………

7) Product Design………………………………………………………………………………..

8) Demand forecast on 1st

Year……………………………………………………………..





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A ballpoint pen is a writing tool which features a tip that is automatically refreshed with

ink. It consists of an exactly formed metal ball seated in a socket below a reservoir of ink. As the pen is moved along a writing surface, ink is delivered. Even though ballpoint

pens were first patented in the late nineteenth century, they only started to reach

commercial significance in the early 1950s. Now, ballpoint pens dominate the writing

instrument market, selling over one hundred million pens each year worldwide.

The idea of a ballpoint pen had been around for many years, it took three different

discoverer and almost 60 years to grow this modern writing instrument. The first

document granting for this innovation was issued on October 30, 1888, to a man named

John J. Loud. His ballpoint pen consisted of a tiny rotating ball heading or aim that was

constantly covered with ink by a reservoir above it. While this innovation worked, it was

not well suited for paper because it leaked and caused smearing. Two other

discoverers, Ladislas Biro and his brother Georg, improved on Loud's innovation and

patented their own version, which became the first commercially significant ballpointpen. These pens still leaked, but not as badly and also they became popular worldwide

and reaching the height of sales in 1944. The next year another discoverer, Baron

Marcel Bich, finally solved the leakage problem and began manufacturing pens in Paris.

Over the years, many improvements have been made in the technology and quality of

the various parts of the pen, such as the ink, the ball, the reservoir, and the body.





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Production Process:

Main RM Stores (Primary

Store)

Brass Store Ink Store Plastic Store Color store Lubrication Oil

Store

Tip Marketing

Section

Tip Making

Process

Lubrication

Process of Tips

Tube Making

Section

Color, Plastic & Oil

Mixing Process

Tube Making

Process

Filling of Tubes &

fitting of Tips

Process

Injection Moulding/

Manufacturing Process of Parts

of Pen

Printing Process

Assembly of All Components

Finished Form of Ball point Pen





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In every production company the process of production has a core value regarding the

manufacturing of product.if production process will not well than chances of failures can

occur because it depend on the process. The product we have chosen his production

process will be as under /following:

First of all we will store all the raw materials in main raw material stores. After that from

where raw materials will be further send to sub stores.

First of all oil store and brass store will start work together from where wires of brass will

be send to tip making section according to the demand in tip making section.

From brass store wires will be send to tip making section where dimensions of wires will

be check properly, for this purpose microscopes and gauges will be use to verify that

dimensions are according to standard. Iftip making section will found that wire are not

according to predefined standard than it will be rejected for tip making. Only attested /

verified brass wires will be send for making of tips.

Brass wires will be bringing from tip making section. During the tip making process

quality of tips will be check after a few period of time. The quality checking of tips will bethe approval that tips are according to the standard which was pre defined and meet to

our quality.





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In ink store cans of ink will be stored and those cans will contain all colors of ink which

will be used in the filling of tubes. After making the tips and tubes they will be send to a

combine section where the process of filling the tubes with ink and fitting of tips in tubes

will be done.

In plastic store there will be different types of plastic materials will be the store. The

major two types of plastic materials will be stored in the plastic store from which one will

the purpose of making the tubes and the other one is for the purpose of exterior or

casing of the ball point pen.

Tube making section will contain the plastic bags for making the tubes.

In the process of tube making their will be cutters they will make the process of cuttingthe tubes. Tubes will be very hard and cold so we will need to make them soft and semi

mold form so that the cutting process will become easy. For the purpose to make soft

the tubes hot waterline will be add at the back side of the cutter. To make the water hot

heaters will be used at different temperatures. After making the tubes they will send to

another unit where the process of fitting the tips into the tubes will be done.

Now the riffles are ready. The one part of ball point pen is finished. Where the other part

of ball point pen is left to manufacture and complete.

To make the casing of ball point pen the very first process is start’s from the mixing of

colors, Plastic Material and Oil Mixing. These three things will be mix in a separate unit.





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For this Purpose color store and oil store will be situated closely because oil will be

stored in the drums. The purpose to make these two sections closely is that movement

or transportation of plastic drums within the working place or manufacturing unit can

difficult.

After mixing process of color, plastic and oil, now the major process will be done and

that will be the manufacturing of barrels, Caps, Plug, Indicator and Nozzles.

The manufacturing process or every component will be done on injection molding

machine. Different type ofplastic materials will have the different properties. Some are

need pre heating before using and some can be use without preheating cold and hot

water will be circulate in the molds and heater will be melt the plastic material. Every

plastic material will be operating on different heat.

After making the exterior the next step will be the printing of name of our brand on

barrels and Caps. For this purpose printing section will perform the process of printing.

After making the all parts of ball point pen the final process is the assembling of all parts

in bring in the shape of pen. An assembly line will be used for this purpose where riffles

will be fit into the barrels, caps will be fit on the top of the barrels and plugs will be fit on

the bottom of the barrels.





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20 Cavity Mold

Cycle time 20 Second

60 Barrel in One minute

3600 Barrel in one Hour

86400 Barrel in 24 Hours (3 Shift)

2592000 Barrels in one Month

30 minute waste due to load shading = 46,800 Barrels

4 Holidays in a month = 345,600 Barrels

3,92,400 Barrels

Less: Maintenance of machine

8 hour *1 Shift (3600) (28,800 Barrels)

Absent Operator

8 Hours * 1 Shift (3600) (28,800 Barrels)(57,600) Barrels





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Note:

24 Hours manufacturing will be done

3 Shifts will be work

Each Shift will be of 8 Hours





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20 Cavity Mold

Cycle time 20 Second

72 Pushers in one minute

4,320 in one hour

103,680 in 24 Hours (3 Shifts)

3,110,400 in one month

30 minutes waste due to load shading 56,160 Pushers

4 Holidays 414,720 Pushers

470,880 Pushers

Less: Maintenance of Machine

8 hours * 1 Shift (4,320) 34,560 Pushers

Absent Operators

8 hours * 1 Shift (4,320) 34,560 Pushers(69,120) Pushers





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Per Minute 122

Per Hour 7,320

24 Hours (30 * 175000) 5,250,000

Load shading 4 Hour * 6 time 24 Hour per Day

Load Shading per month (24 * 26) 624 minutes

Per month waste due to Load shading (122 * 624) (76,128) Tubes

Holidays (4 days * 175,000) (700,000) Tubes

(776128)Tubes

Less: Holidays (15 Days * 175,000) (2,625,000) Tubes





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70 tips per minute

Per hour production of tip’s (70*60) = 4200

Per day production of tip’s (24*4200) = 100800

Per month production (100800*30) = 3024000

Production losses due to 4 holiday’s (4*100800) = 403200

30minute’s production losses due to load shedding = 54600 (457,800) Tips

8 hour loss of production due to maintenance of machine= 4,200

8 hours loss of production due to absenteeism of operator = 4,200(67,200) Tips





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Per minute 60 Ballpoint

Per Hour (60 Minutes * 60 ball point) 3600 ball point

24 Hours (3600 Ball point * 24 Hours) 86400 Ball point

1 Month (86400 Ball point * 30 Days) 2592000 Ball point

30 minute waste daily (30 * 26 Days) 780 minutes

Load shading (780 * 60) (46,800) Ball Point

Holidays (4 * 86400) (345,600) Ball Point

(392,400) Ball Point

16 hours waste due absentees of Labour 57,600 Ball point





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Location for business is very important factor for a business and selection of location is

also important for establish the business. Regarding the selection of location we

decided that we will establish our production unit in sundar industrial estate. The reason

to select this industrial estate is that it is the established estate of industries where

already has an atmosphere of business. Another reason is to choose this location that

taxes of government in this estate are less as compared to other industrial estates. So

we will able to pay fewer taxes to the government. As well as price of purchase the

place will be less and reasonable as compared to other industrial estate. Another

important thing is that cost of transportation will be less. As well as load shading of

electricity will be less as compared to other places. Everybody knows in Pakistan about

sundar estates. The target of selling and buying can be achieved easily. There is thevicinity of sundar is populated area. There is facility of Gass, Electricity, Petrol, School

and College. There inside of industry we will make the parking area and Park as well as

for the employees. They can rent and spend their extra time in pleasant environment.





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Another reason to select this location that it will be a positive impact on people and

attitude of people will be positive because community of this area knows very well that

what industry is. If we will choose the urban area to install our manufacturing unit than it

can possible that people of that area feel or think obnoxious because due to

manufacturing unit their will noising and people will not like the noising. So when we will

install our unit in this industrial estate attitude and behavior of people of this will not be

negative.The location of our company is very helpful and supportive for our business.

The climate is moral excellence the weather of riwand is providing assistance for our

business transactions and also not interposes in our production matters. We easily find

everything for daily routine; also the work place is utile for business. We capable toacquire raw materials by roads and railway and it is also easy to commercial exchange

for goods and services. There is no problem of transportation so we with ease go one

place to other with the purpose of business or any other assistance.





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To improve the quality of product there is always need that we apply some techniques

regarding management of quality. This quality will help us to increase the quality of our

product and minimize the failure point of our product.

The quality management techniques that we will use those will be following:

Quality control department will work during all the processes.

Quality of tips will be check and maintain through QC inspectors.

Quality of tubes during the process will be check. Dimension of tubes will check

according to the sale.

Barrels, Caps, Plugs, Nozzles and indicators will be check after every 2 Hours

through QC inspectors.

Quality of products will be check after every 2 hours by QC inspectors. They will check

the every step of production in quality control laboratory where quality will be match with

standards. Quality of tips will be check through microscopes and dimensions of tubes

will be check through digital vernier Callipers. Writing Capacity or consumption capacity

of pens will be check on film of paper. A very important thing which will be check that

color of writing of pens and color of barrels will be check according to the standard of

master color. As well as fitting of riffles into barrels and fitting of tips into tube will be

check properly in a shift 4 times. In addition operator of machine who will be

manufacture the parts of ball point pen. He will also check and maintain the quality of

components or casing.

The quality of pen elements is checked during all manufacturing stages. From way back

thousands of parts are made each day, review each one is impossible. Accordingly, lineinspectors also take random samples of pen pieces at sure time intervals and check to

ensure that they meet set specifications for size, shape, and consistency. And the

primary testing method is visual inspection, although more rigorous measurements are

also made. Various types of measuring equipment are available. Length measurements





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are made with a vernier caliper, a micrometer, or a microscope. For each one differ in

accuracy and application. To test the term of surface coatings, an optical flat or surface

gauge may be used.

Like the solid pieces of the pens, quality tests are also performed on the liquid batches

of ink. After all the fixing or mixtures are added to the batch, and a sample is taken to

the Quality Control (QC) laboratory for testing. Physical characteristics are checked to

make sure the batch adheres to the specifications outlined in the formula command.

The QC group runs tests such as pH finding, viscosity checks, and appearance

evaluations. So if the batch is found to be "out of spec," adjustments can be made. For

example, colors can be adjusted by adding more dye.

Additionally to these specific tests, line inspectors are also posted at each form of

manufacture. They visually inspect the elements as they are made and also check for

things such as inadequately filled ink reservoirs, deformed pens, and incorrectly

assembled parts. Random samples of the final product are also tested to ensure a

batch of pens writes correctly.





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There are three types of Forecasting

1: Judgmental Techniques

2: Time Series Techniques

3: Associative Models

Now we are going to discuss the judgmental techniques in detail:

“Judgmental Techniques is defined as that which uses nature along with other

resources to forecast what may happen. Executive decisions can be made on the bases

of these feelings. Goes beyond simply statistical techniques and encompasses what

people believe is going to happen. It is in the area of instinct, interdepartmental

committees, market research and executive opinion.”

Judgmental forecasting technique based on opinion which we get from different people,

management, staff and also are the executive. By judgmental forecasting techniques we

don’t need any type of past and future data.

The use of judgmental technique is that we going to start a new business because we

have no past data that we going to make forecasting on the bases of past data. When

we have no past data we get different type of opinion from different persons for our

forecasting. In judgmental forecasting we don’t need any type of future data.

In judgmental forecasting techniques we get different opinion from different persons. In

this technique we get we get opinion from sales persons that how they going to sale in a

month and if they sell a maximum sale then this point going to increase the sale of thecompany by targeting his maximum sale. Sometimes we get opinion from outsiders

because they are also doing the same work and they will give us a better feedback

according to his field.





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Beside this we also get opinion from our management and staff. Our executive also

guides us in a better way that how ever do in a proper way.

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Final Assignment POM