SYNOPSIS ON

Process Stabilization and Operational Excellence in ITC New

Confectionary Plant at Salem, Tamil Nadu

SUBMITTED BY :
Shobhit Saxena
Enrollment No. : 101899411

RESEARCH SUPERVISOR
Dr Arif Nadeem
Associate Professor
Department of Mathematics
Bareilly College Bareilly

SUBMITTED TO

School of Management Studies

Indira Gandhi National Open University

Maidan Garhi, New Delhi

 RATIONALE FOR THE STUDY

The project has been designed to understand, counsel and stabilize the different

processes involved in manufacturing of different confectionery products (Hard boiled candies

(HBC) and Modified Toffee).

Manufacturing unit at Salem had been extended by installing a new manufacturing line,

which is designed to produce three type of products (HBC, Lacto and Eclairs). All products have

different characteristics, parameters, process flow and machinery. This is the first and only

manufacturing line installed to manufacture three different kinds of product from same forming

line.

The project deals with understanding the confectionary process/ machinery, the

chemistry behind the process, the reasons for consuming a raw material, the validation of each

process step, understanding of the contract manufacturer and the manpower involved.

The project deals with identifying process errors, operational issues and machinery

problems. To counsel and solve the issues related to the manufacturing line involving

manpower, process, and machinery by providing optimal solution.

This project involves protocol of equipments and machinery installed, i.e. delivery

against actual capacity, stabilizing all processes involved in different variants and ensuring

finished product quality norms are fulfilled. This justifies the rationale of the study.

.
OBJECTIVES OF THE STUDY

• To understand the chemistry involved in sugar based confectionery.

• To understand the processes and machinery involved in manufacturing of Hard Boiled

Candy (HBC), Eclairs and Lacto.

• To plan and manufacture each variant as per production plan.

• To observe and highlight all operational and quality issue.

• To coordinate with ITC & Contract Manufacturer to resolve issues observed.

• To stabilize the production, and provide Standard Operating Procedures at each

process step.

• To protocol all machines for its delivery against rated capacity.

• To analyse the underlined problems and to suggest ways and means to overcome the

problems.
 RESEARCH METHODOLOGY
The data collected would be the current running performance of the plant measured in

different attributes and analysed. The details on data are as follows.

Nature of Data & Sampling Point

• Production Data ( Daily Frequency)

o Daily Production (No. Of Lots) – Cooker

o Daily Rework generation – Cooker, Batch former, Euromac Die, Naked Sorting,

Machine & FG.

• Quality Data

Test Name Sampling Point Frequency (Sample Size)

o Drop Weight – Euromac Die. – 15 min (100 Drops)

o Kf ( moisture), Acidity – Cooker & Kneader – Every 5 Lots (5 gm)

o Vaccum Leak Test – Pillow Pack Machines – Hourly (100 Drops)

o Defects generation – Pillow Pack Machines – Hourly (100 Drops)

o Defect generation – Final Goods – 30 min (SKU Size)

Sampling Method

• Random Sampling

• Sequential Sampling

Tools & Techniques of Analysis

• Measure of central tendency (Mean) & Measure of Dispersion (Standard Deviation,

Range).
• Fish Bone Analysis for issues.
• Pareto Analysis.
• Correlations or Scatter Chart analysis.
EXPECTED CONTRIBUTION

The project mainly focuses on manufacturing of confectionery at ITC Salem, this project

would help to reduce the distribution cost in Southern part of India to 10% of present distribution

cost.

The other benefits of the projects are

• Better serviceability to market.

• Lower inventory

• Capturing lost market, due to low supply of Lacto from Pollachi.

• Reduced setup cost, manufacturing three variants at single manufacturing line.

LIMITATIONS

The project may encounter following limitations

• Less Manpower

• Equipment Capacity ( Designed v/s Actual)

• Insufficient funds availability with contract manufacturer.

• Contract manufacturer interest in different products.

• Delay in suggested modifications.

Research is an ongoing process but each study is conclusive and paves way to

further research. The present study will make base for critical evaluation of the

decision to continue to the extra line in the light of costs, profit generated and

market share etc.

Purpose of Study

ITC Limited or ITC is an Indian public conglomerate company headquartered

in Kolkata, West Bengal, India. Its diversified business includes four segments: Fast Moving

Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. ITC's

annual turnover stood at $7 billion and market capitalization of over $34 billion. The company

has its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares

ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was

rechristened to India Tobacco Company in 1970 and then to I.T.C. Limited in 1974.

ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels,

Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology. While

ITC is an outstanding market leader in its traditional businesses of Hotels, Paperboards,

Packaging, Agri-Exports and Cigarettes, it is rapidly gaining market share even in its nascent

businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and

Stationery.

ITC made its entry into the branded & packaged Foods business in August 2001 with

the launch of the Kitchens of India brand. A more broad-based entry has been made since June

2002 with brand launches in the Confectionery, Staples and Snack Foods segments.

The Foods business carries forward this proud tradition to deliver quality food products

to the consumer. All products of ITC's Foods business available in the market today have been

crafted based on consumer insights developed through extensive market research. Apart from

the current portfolio of products, several new and innovative products are under development in

ITC's state-of-the-art Product Development facility located at Bengaluru.

The Foods business is today represented in 4 categories in the market. These are:

• Ready To Eat Foods

 • Staples

• Confectionery

• Snack Foods

ITC currently has two brands in the confectionery segment - 'Candyman' and 'mint-o'.

ITC launched the 'Candyman' range of confectioneries in August 2002. Led by

the 'Candyman Fruitee Fun' range of assorted fruit flavours ('Wild Banana', 'Pineapple Punch',

'Orange Josh' and 'Mango Delite'), the 'Candyman' portfolio now includes deposited candy

products like 'Candyman Butterscotch Licks' and 'Candyman Éclairs' (Choco flavoured as well

as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw

the successful launch of 'Candyman Cofitino' in November 2005.

The brand was further strengthened with the launch of 'Candyman Natkhat

Mango' and 'Candyman Maha Mango'. In line with the strategy to provide innovative flavours

and formats to consumers, Candyman Mango Licks was launched in June 2007, Candyman

Lacto Creme Centre in June 2008 and Candyman Toffichoo Strawberry in early

2009. Candyman Lacto Creme Center is the only Lacto with a yummy cream filled center,

and Candyman Toffichoo is a luscious fruit flavored soft and chewy toffee.

The 'Candyman' range of confectionery is targeted at ‘fun-filled, naughty kids’ who seek a

delightful candy experience through a range of candy types and flavours.

'mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched the

compressed mint offering, across all major markets in India, with new and improved product

and packaging. It is available in mint flavour with added blue specks to enhance consumer

experience. mint-o Cool Blue - a single mint in a pillow-pack was launched In November

2007. 'mint-o' is available in 3 sizes – rolls of 20 and 6 and singles, capturing the international

essence of ‘youthful cool’.

 ITC launched 'mint-o Fresh' in October 2004. An ‘active’ mint deposited candy, mint-o

Fresh is available in a refreshing mint flavour - mint-o Fresh Eucalyptus. Its launch extended the

footprint of the 'mint-o'brand in line with the strategy of adding excitement and contributing to

the growth of the confectionery category. 'mint-o Fresh' is especially targeted at the adult

consumer creating a basket of mint-based products across price points.

ITC Limited – Foods Division has a major market for confectionery in southern part of

India. Presently HBC and Eclairs are manufactured mainly at Ahmedabad (Gujarat), Hyderabad

(Andhra Pradesh) and Nagpur (Maharastra). Setup of a new plant at Salem would reduce the

distribution cost (Freight Cost) of the product, and also better connectivity would ensure

reduced inventory created at different hubs.

Lacto is presently manufactured at Pollachi (Tamil Nadu). An increase of 30% demand

is expected in next year, and so an increase in capacity is required to cater the demand. Hence

the production of Lacto at Salem would help in fulfilling the demand supply chain, and provide

an cutting edge to produce different variants as per need. It has initiated me to work on this

project.
TITLE OF THE PROJECT
“Process stabilization and operational
excellence in ITC new confectionary plant at
Salem, Tamil Nadu”

BROAD OUTLINE OF THE STUDY:

CHAPTER I INTRODUCTION
CHAPTER II STATEMENT OF PROBLEM
CHAPTER III RESEARCH METHODOLOGY
CHAPTER IV OVERVIEW OF ITC LIMITED
CHAPTER V PROCESS STABILIZATION IN
ITC’S NEW CONFECTIONERY
PLANT AT SALEM.
CHAPTER VI OPERATIONAL EXCELLENCE
IN ITC’S NEW CONFECTINERY
PLANT AT SALEM.
CHAPTER VII FINDINGS: PROBLEMS &
SUGGESTIONS
BIBLIOGRAPHY

Reference from:

Books & Manuals:

• “Sugar Confectionery” by E.B. Jackson, Publisher, Blackie, 1990

• “Candy Making for Dummies” by David Jones, Publication : Branes & Noble,

2005

• Preservation of Foods Adulteration Act 1954.

• “Statistic for Management” by Levin and Rubin, Publication : TMH 2011

• “The Goal” by Dr. E.M. Goldratt., Publisher North River Press, 1992

• “Operation Research” by S.Kalavathy, Publisher, Vikas Pub. House 2010

• “Fundamentals of Research Methodology” by Banerji & Rai Pub. Kitab Mahal

• “Business Statitics” by B.N.Gupta, Pub. SBPD

• Machine Manuals from vendors.

 BIO-DATA OF GUIDE

NAME: DR ARIF NADEEM

POST HELD: ASSOCIATE PROFESSOR

DEPARTMENT: MATHEMATICS

COLLEGE: BAREILLY COLLEGE BAREILLY

COUNSELLOR: IGNOU

STUDY CENTRE: 2704

REGIONAL CENTRE: 27

NO. OF STUDENTS CURRENTLY

WORKING FOR MS-100: TWO

MOBILE NO. 09897608566

SIGNATURE

( DR ARIF NADEEM)