A

CONTINUOUS EVALUATION COMPONENT (CEC) REPORT

ON

SHRI KHEDUT SAHAKARI KHAND UDHYOG MANDLI LTD. PANDVAY

SUBMITTED TO

SHREE M. H. KADAKIA INSTITUTE OF MANAGEMENT AND COMPUTER

STUDIES

FACULTY GUIDE

MS.TANVIRA SHAIKH

AFFILIATED TO

GUJARAT TECHNOLOGICAL UNIVERSITY

IN CONTINOUS EVALUTION PROCESS OF THE

REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

PARMAR JATIN- ENROL. NO. : 167710592003

AHIR VISHAL- ENROL. NO. : 167710592016

 ACKNOWLEDGEMENT

We are heartily thankful to the Gujarat Technological University, which has given us the
golden opportunity to prepare or analyze project report of CAPACITY AND CAPACITY
PLANNING. We are also thankful to honorable professor of our college who has leaded us
to enlighten ourselves in preparation of this project.

We are heartily thankful to Management Faculty without whose constant guidance this work
would have been an impossible task to complete. Her inspiration and encouragement has
leaded me to come with a successful task.

PLACE:

DATE : PARMAR JATIN

& VISHAL AHIR

 DECLARATION

We are student of SHRI M. H. KADAKIA INSTITUTE OF MANAGEMENT AND

COMPUTER STUDIES ANKLESHWAR, affiliated to Gujarat Technological University,
Ahmadabad, hereby declare that the CEC Project Report on CAPACITY AND
CAPACITY PLANNING is a result of my own work.

PLACE: Name: Jatin Parmar

& Vishal Ahir

DATE: (FY MBA 2nSEM)

Signature:
 PREFACE

Management is an essential ingredient in every organized endeavor. Successful Management

of complex organization employing sophisticated technology & skilled personnel cannot be
possible through intuition on trial and error.

On extreme of the competitive environment the higher degree of excellence in Management

is not a unilateral phenomenon, indeed it is the deepest touch to Sense the fundamental of the
management with the stewardship. There is lot of Tough way in study but by using soft
sentiments it is somehow easy to understand their vision and how they are committed.

Among various interesting things concerned with enhancing the understanding of MBA
student, Fifteen days CEC project report is very essential to get practical exposure to the
Weaving water of industry.

My topic of CAPACITY AND CAPACITY PLANNING on CEC (Continuous

Evaluation Component) Project prepare is not a direct input.
 COMPANY
PROFILE

(PANDVAI SUGAR FACTORY)

 INTRODUCTION

During 1997-1980 , the area has rich black cotton soil cotton was the most established stable
crop of the area, gradually cotton
disappeared due to control dieses and low
production and sugarcane crop into
existence.Shree Khedut Sahakari Khand
Udyog Mandli Ltd. is registered under the
gujarat cooperative societies Act 1961, on
27th July 1990 and its registration number is
SE-65.The central Government has
approved a license in 1990 for establishment
of a 2500 TCD sugar Plant. Initially the
plant and machinary had been supplied by
the Nation Heavy Engineering Co-operative
Ltd.,Pune.

This factory is situated at pandvai village, Tal. Hansot, Dist. Bharuch , state
Gujarat(India).The distance between factory site and nearest railway station (Kosamba) is
only 5 K.M. and national Highway NO.8 is only 8 K.M. Tha area of operation Covers 467
villages of Hansot, Ankleshwar, Valia, Mangrol, mandvi and olpad talukas. The number of
Shareholders is 23,224. The installed capacity of cane crushing is 2500 MT/Day.Other by
products like Molasses,Press mud and Bagasse can also be produce with sugar. The annual
Production of sugar and molasses is 45000 MT and 20000 MT respectively. With gradual
modification we have increased the crushing capacity up to 3500TCD. The total capital
investment of the factory is Rs. 52 crores and the Annual Turn-over is Rs.214 Crores. The
project trial was carried out in 1995-96 with a crushing figure of 7129 tones cane and a
recovery of 8.0 %. In 2008-09,a crushing figure of 480369 tones cane and a recovery of
10.40%. When the factory was stated in 1995-96 the average yeild per acores was hardly 25
tones and today it is 26 tones.

The factory has spent Rs. 18.50 crores and set-up a Distillery Plant with a capacity of 33,000
litres per day. The above plant has commissioned in February08. The installed capacity of
plant is 33,000 litres per day of rectified spirit and 30,000 litres per day of Ethanol.
We manufacture sugar through Double sulphitation Process and to reach the international
standard of Sugar.We have produced 20000 MT Raw sugar in the season 2006-07 and
exported.
ORGANIZATIONAL STRUCTURE

Chairman

Vice
Directors
Chairman

Managing
Director

Office Cane
Developme Chief General
Superinten nt Accountant Manager
dent Officer

Transport Weighbridg
Commercial Agriculture Dy. Chief Chief Chief
e
Manager Officer Manager Accountant Engineer Chemist
In charge

Zone Cane Clerk Asst. Chief Dy. Chief Lab

Time Clerk Accountant
Supervisor Clerk (Account) Engineer Chemist In charge
Keeper

Purchase Clerk Cutting Accountant Technical Lab

Officer (Share) Supervisor Clerk Staff Chemist

Clerk Mfg.
(General) Chemist

Mfg.
Staff

Distillery Store
In charge Keeper

Chemist

Production
Staff
BOARD OF DIRECTOR

SR NO. NAME DESIGNATION ADDRESS

1 Shri Iswarsinh Thakorbhai Patel Chairman Kudadra,Ta.Hansot,Dist:Bharuch
2 Shri Mahipatsinh Natusinh Patel Vice Chairman At.Mahuvej,Ta.Mangrol,Dist.Surat
3 Shri Rameshbhai Bhagvatibhai Executive At.Mulad,Ta.Olpad,Dist.Surat
Patel Director
4 Shri Arvindbhai Naranbhai Patel Member At.Sisodra,Ta.Ankleshwar,Dist.Bharuch
5 Shri Bharatbhai Ambalal Patel Member At.Badkodra,Ta.Ankleshwar,Dist.Bharuch
6 Rashikaben Kantilal Prajapati Member At.Sajod,Ta.Ankleshwar,Dist.Bharuch
7 Shri Hitendrabhai Vanmalibhai Member At.Nanghoi,Ta.Olpad,Dist.Surat
8 Shri Dineshkumar Ramanlal Patel Member At.Ishanpor,Ta.Olpad,Dist.Surat

9 Shri Mukundrai Maganlal Patel Member At.Sherdi,Ta.Olpad,Dist.Surat

10 Shri Ishwarsinh Mansinh Chauhan Member At.Velaccha,Ta.Mangrol,Dist.Surat

11 Shri Vinodchandra Maganlal Patel Member At.Vaghwan,Ta.Hansot,Dist.Bharuch

12 Shri Jaydeepsinh Prabhatsinh Member At.limbara,Ta.Mangrol,Dist.Surat

Devdhara
13 Shri Jafarullakhan Jisufbhai Patel Member At.Kothwa,Ta.Mangrol,Dist.Surat

14 Shri Yashwantbhai Umedbhai Member At.Sunevkhurd,Ta.Hansot,Dist.Bharuch

Patel
15 Shri Nathubhai Dhagdabhai Patel Member At.Vad,Ta.Mangrol,Dist.Surat

16 Shri Rameshbhai Jivrajbhai Member At.Kosamba,Ta.Mangrol,Dist.Surat

17 Director of Sugar Representative Member Ghandhinagar

18 Shri Marutisinh Takhtsinh Member Desai Faliya NavaDera.Bharuch

Atodariya
19 Shri Manharbhai M.Patel Member Chairman Shree Kamrej V.S.K.U.M. Ltd
20 Shri Amrutbhai Hirabhai Patel Managing At.Pandvai,Ta.Hansot,Dist.Bharuch
Director
PRODUCTS
Sugar

The sugar which is a Carbo-hydrate is obtained from

sugar cane and is known as Cane Sugar. Sugar is
essential part of human diet hence it comes under
essential commodity. It can be used as a raw material
in fermentation industry to produce Ethyl Alcohol,
Butyl Alcohol, Glycerin and Citric Acid.

Bagasse

Bagasse is the residue obtained from crushing cane in

the mills. It contains about 50% moisture, 45 to 47%
fiber and 2 to 3% sugar. Bagasse is used as fuel in
boilers in the Sugar Factory and a raw material for the
production of Cellulose, Furfural, Paper, Particle
board, Cattle feed etc.

Molasses

Molasses which is also known as black strap molasses or

treacle is a dark brown viscous liquid obtained as a by-product
in processing Cane Sugar. It contains nearly uncrystallized,
fermentable Sugar & some Sucrose. It is a valued raw material
for foreign liquor, as a table syrup and food flavourant, Ethyl
Alcohol, Acetic Acid, Citric Acid, Glycerin and Yeast. It is also used as food for farm
animals and in the manufacture of several processed tobaccos.
 Rectified Spirit

It is manufactured by Formation & distillation of molasses. It is

used for manufacturing of Acetic Acid, Acetone, Oxalic Acid,
Absolute Alcohol & other various chemicals.

Ethanol

It is manufactured by Azeotropic Distillation of Rectified Spirit.

It is used as Fuel in Automobile and also in Pharmaceutical
Industries.

Bio-compost

Bio-compost is excellent manure which improves soil texture. It

is used as a bio fertilizer in far
CAPACITY AND CAPACITY PLANNING:-
The capacity of facility is defined as the maximum load that can be handled by it during a
given period. The load can be expressed in terms of the amount of inputs or output. For
example, the capacity of a sugar mill can be expressed in terms of the tonnes of sugar cane
(input) crushed per day or terms of tonnes of sugar (output) produced per day.

When a company produces many products or services, the measure of capacity in terms of
output may not be suitable. For example, a plastic goods manufacturing unit may produce
tables, chairs, jugs, toys, etc. it would be impractical to express the capacity of such a factory
in terms of the output of each product produced, for example, 100 toys per day. The suitable
measure here is in terms of the input, i.e., the amount of plastic processed per day. Hence, we
may say that the measure of capacity is dependent upon the suitability of the situation.

NEED FOR FACILITY CAPACITY PLANNING:-

Facility capacity planning is needed for various reasons as shown in bellow figure. A low
capacity of the facility may result in cost is mainly due to the loss of potential profit. It has
also been observed that the minimum average unit cost of a product is higher for small plants
compared to large plants.

Similarly, over-capacity of the plat means less number of units of the product are produced
due to a lower demand as compared to the capacity available. Again, the unit cost of the
product will tend to rise, as the fixed costs of the facility will be divided amongst less number
of units of the product. The optimal capacity of the facility is thus the capacity at which the
sum of the costs of under-capacity and over-capacity is the minimum.

The break-even analysis is useful in facility capacity planning and also in determining the
which the break-even volume is low. Low break-even volume is desirable for new facilities
so as to recover the investments as early as possible through the revenue generated by selling
the products.
 To find the optimal
capacity of the facility so
that the sum of costs of
under-capacity and over-
capacity is the minimum.

To satisfy the future Needs To keep the initial

demand of products for investment in the
without any shortages. facility facility as possible to
capacity achieve lower break-
planning even volume.

Investments in facility
capacity are long-term
and cannot be reversed
easily.
TYPES OF CAPACITY:-
There are three types of capacity:

Design capacity

As the name suggests, this is the capacity designed for the facility. It depends upon the
number and capacity of machines and equipment, coupled with labour. It represents the
maximum rate of output that can be achieved under ideal condition.

Effective capacity

In reality, if a facility is used to make different products, a set-up time will be required
between batches of different products to be produced. These set-up times will be required to
replace the raw material and components for the new batch of a different product to be
processed on the machines. Also, the machines may require adjustments, oiling, cleaning, etc.
some units of initial output may be lost in quality testing. Thus, it is not practically feasible to
achieve design capacity. What can be achieved is the effective capacity. Thus, effective
capacity is the maximum rate of output which can be achieved under the above constraints. It
is always lower than the design capacity.

Actual capacity

This is the maximum output rate which is actually achieved under the constraints of machine
breakdowns, labour inefficiencies and absenteeism, defective products, late delivers of
material by the supplier, and so on. Actual capacity can be equal to or less than the effective
capacity.

There are two measures of system performance based upon these type of capacity.

Efficiency = actual output

Effective capacity

Capacity utilization = actual output

Design capacity
 In the formula for utilization, design capacity is constant. Therefore, utilization can be
increased only by increasing the actual output. Actual capacity cannot be increased beyond
the effective capacity as it is the maximum limit of actual capacity. Thus, for increasing the
utilization, effective capacity has also to be increased.

Ways of increasing the effective capacity and thus, increasing the capacity utilization.

Proper process quality control so that there

are lesser defective items requiring rework.

Proper facility Good training, high

location, layout, and motivation, less
internal working absenteeism and
conditions. turnover on the part
of workers.

Ways of
increasing
Making products effective Good coordination
and services as capacity with suppliers for
uniform as possible timely and defect
in design so that the free supplies, and
number of set-ups proper scheduling of
required are product on
less(batch size will machines.
be large)

Properly following the environmental &

pollution norms, which results in infrequent
inspections by government enforcement
agencies and, thus, less disruption of
production activities.
Capacity and Capacity Planning
In the Pandvai sugar company design capacity is 4500 tons sugar can crushing per day. But
the production is not same all the days. The production Actual capacity is 4000 tonnes in per
day. The all day production is not same because the some disturbance in company like a
machine is out of service, uncertainty of raw material, wastage of material and others
problems are faces to decrease the production on actual capacity. So effective capacity is
output of 3500 tonne per day.

The Pandvai sugar is almost fulfilment of all raw material but some times lack of times and
some reason behind there was not covering the gap of production output.

The all planning is set of forecasting before production but they have not fulfil the actual
capacity of production.

The production planning is depends on the bases of capacity equipment, raw material,
labours, warehouse.

The company is semi continues process is used in production because it has a only 180 day
run in a one year.

Sugar can is input of raw material but in the process of crushing bagase will be disclose and
juice is transfer on next step and further processing disclose the molasses and output of sugar
will be manufacturing.

Efficiency = actual output

Effective capacity

= 4000

3500

= 1.14

Capacity utilization = actual output = 4000

Design capacity 4500

= 0.88
FINDINGS:-
The pandvai sugar is actual capacity of sugar can crushing in a one day is 4500 tone and
output of sugar is 4500 quintal.

The company is run by a sessional process.

The production planning is depends on the bases of capacity equipment, raw material,
labours, warehouse.

The company effective capacity is output of 3500 tonne per day.

The company is run by 180 days in a 1 year.

The company total employees is 400, and production department related employees is 200.

The company is run by 4 shift and semi continuous.

SUGGESION:-
Properly following the environmental & pollution norms, which results in infrequent
inspections by government enforcement agencies and, thus, less disruption of production
activities.

The company should improve capacity on production.

It also improve of capacity input like raw material.

The company has maintain the relationship with employees.

The company will be decrease the wastage of raw material in production process time.

Also improve latest technology and future production planning.

CONCLUTION:-
In the Pandvai sugar company design capacity is 4500 tons sugar can crushing per day. But
the production is not same all the days. The production Actual capacity is 4000 tonnes in per
day. The all day production is not same because the some disturbance in company like a
machine is out of service, uncertainty of raw material, wastage of material and others
problems are faces to decrease the production on actual capacity. So effective capacity is
output of 3500 tonne per day.

The company has a usable in raw material and sold the wastage like bagasse, ethanol, bio
composed.

The all process is systematic and step by step followed by production.

BIBLOGRAFY:-
WWW.MANAGEMENT STUDYGUID.COM

ANNUAL REPORT OF PANDVAY SUGAR

PRODUCTION AND OPERATION MANAGEMENT