Company Profile: Scrap Manegement
Company Profile: Scrap Manegement
1. Company Profile
Caprihans India Limited is one of the largest manufacturers of PVC Films in India and has got
expertise of more than 35 years in this field. It manufacturers a wide variety of PVC films both
Flexible & Rigid and also Sheets/Boards made from other polymers like ABS, PP, HDPE and
Rigid PVC. The films are calendared while the sheets/Boards are extruded.
Caprihans India Limited is a Public Limited company and became a part of EVC group in 1997.
EVC was acquired by the INEOS group in 2001. The INEOS Films business was acquired by
Bilcare in 2010. Caprihans India Limited is today part of Bilcare Solutions Division
(www.bilcaresolutions.com).
The company has 4 calendaring lines, 3 extruder lines, 2 lamination and coating lines as also
printing and embossing lines at its production units at Thane and Nasik, near Mumbai.
A series of computerized in-process controls ensures a high level of quality products to our
customers. This along with continuous modernization and know-how exchange with Bilcare
Research group companies ensures that our customers get expert application support backed by
experience and expertise of multi-disciplinary teams.
The entire organization is focused towards customer satisfaction. This is ensured by an extensive
network of branches and warehouses spread out at different geographical locations all over India
and through agents in other countries.
Caprihans manufactures a wide range of films for meeting the blister packing needs of the
pharmaceutical industry. The high quality of the products is ensured by careful selection of the
raw materials, modern computer controlled calendar lines, state of the art coating and laminating
lines, under the control of highly qualified and committed staff.
The calendaring, the coating and laminating lines are in the same factory at Nasik and the entire
production process is conducted according to ISO 9001:2000 quality assurance standards.
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The entire range of films meets the high demands of the pharmaceutical market in terms of
process ability, forming, water-vapor, and gas and aroma barrier.
Tablets
Capsules
Ampoules
Suppositories
Medical devices
Machineries:
Calendars (3 Nos.)
PVDC Coating cum Lamination (1 No.)
PP Corrugated Sheet Extruder (1 No.)
Slitting Machines (8 Nos.)
Sheet Cutters (2 Nos.)
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MANAGING DIRECTOR
UNIT HEAD
HOD HOD
MAINTENANCE PRODN.(EXTD)
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2. Introduction
Project management is a discipline that can be applied to all industries, and can be particularly
effective in the manufacturing industry. Manufacturing relies heavily on information handling,
coordination between different department and maintaining the smooth flow between all
processes i.e. from purchase of raw material to dispatch of finished goods. When a project
management methodology is applied to the manufacturing process, its tools and techniques will
coordinate and command the instructions and result into a standard method. This will be
achieved primarily through the techniques of planning, scheduling, risk management, quality
management, communication management and change control.
The manufacturing process of PVC roll in Caprihans India Ltd. includes from mixing of resin
and modifier, production of plastic roll, slitting and produce small rolls i.e. spools, packing and
finally dispatch to respective customers. Now for this process the slitting plan is prepared
according to customer order. And all other process is going on according to this plan. Now the
problem arises when the changes happened in this plan either by production department, slitting
department, dispatch department or planning department itself. Company produces two type of
materials one is normal PVC material other one is PVDC i.e. Polyvinylidene chloride. Coating
on PVC film create PVDC roll which can reduce the gas and moisture permeability of PVC
blister packages by a factor of 5–10.
In any manufacturing company the coordination is important part to create a common platform
for these departments. For this purpose there should be one control over all above processes and
all should report their activities to that person or office. So that there will be standard procedure
followed by all. Now how project management office will help in this case? Project management
office will evaluate all changes going within different processes of manufacturing and according
to that it will give the instructions to relevant department for changes. The particular scenario we
consider here is plant that produces a number of products over time and maintains an inventory
of finished goods at the plant. The second part due lack of one control is scrap generation and
ultimately it affect on profit of company. Because reusing the scrap within company itself can
create more value than selling it directly to outsider. Therefore by proper control and by few
modifications, scrap can be reduced and also reused in more effective way. In such cases ERP
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plays vital role to implement proper management information system. In Caprihans India limited
ERP is already installed but only installing ERP is not important but success measurement after
its installation is more important. In Caprihans oracle is used for ERP system which contain
different model for different department like production planning, calendaring, dispatch and
master model. Due to implementation of ERP efficiency is increased than previous case. But
there are some modifications still present by which company can gain more efficiency in
production and all other processes.
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3. Problem Statement
The report deals with two main problems; Scrap is generated first in Calendaring (Production)
process and second is in Slitting (Cutting) process.
In slitting process scrap is generated in terms of side trimming and it is around 2.5% of total
jumbo roll. Top layer, Bottom layer, contamination and wrong handling of jumbo roll cause 1%
of scrap generation. Some times in slitting due to miscommunication different roll are cut for
different order. Also sometimes it excess slitting is done irrespective of order.
The aim behind this is to use generated scrap effectively as most of material is reusable but we
cannot able to use it effectively.
Every time when change in color or change in formulation is required as per ordered item
characteristics.
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4. Literature Review:
Scrap management consisting different types in which first is to try to reduce it and second is try
to utilized generated scrap effectively in system. Scrap management is primarily about
specifying the size and placement of stocked goods. Inventory management is necessary at
different locations within an organization or within multiple locations of a supply chain, to
protect (the production) from running out of materials or goods.
The scope of inventory management is broader than stock. Basically inventory management can
be defined as the “management of materials in motion and at rest” (Coyle et al., 2003). The
following activities all fall within the range of inventory management (Wikipedia, 2009): control
of lead times, carrying costs of inventory, asset management, inventory forecasting, inventory
valuation, inventory visibility, future inventory price forecasting, physical inventory, available
physical space for inventory, quality management, replenishment, returns and defective goods
and demand forecasting.
Inventory management basically serves two main goals (Reid & Sanders, 2007). First of all good
inventory management is responsible for the availability of goods. It is important for running
operations that the required materials are present in the right quantities, quality and at the right
time in order to deliver a specific level of service. The second goal is to achieve this service level
against optimal costs. Not all items can be held in stock against every cost for example and
therefore choices have to be made.
Production (Manufacturing): The Production or Manufacturing dept obviously makes the stuff
that the company sells. But it has to work closely with Development and Research to make sure
that what comes out of Development is something that can be built, tested, and maintained at a
profit. Good production people are very process oriented; they want to do things according to
the book with no deviations, and they pay attention to the details.
Quality Control (Testing): It's the job of the QC folks to make sure that what comes out of
Production actually works. In company that manufactures stuff, they will devise tests that every
product (or a sample from a production batch) has to pass before it is shipped. In a software
company, QC usually works with the developers to find bugs (although many companies are
letting their customers take on the QC task).
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Shipping: Big companies and those that deal with big or delicate or expensive or huge numbers
of items will have a separate dept. devoted to packaging and shipping the stuff quickly and
efficiently. Sometimes figuring out the fastest and cheapest way to deliver the stuff becomes
very complicated and is called Logistics.
Customer Support: Once the product is in the customer's hot little hands, they'll contact
Customer Support if they have questions or anything goes wrong. Companies want to spend as
little on CS as possible, so they should invest a lot of time in building reliable, robust and easy to
understand products. But they can also cut costs by outsourcing CS and putting up online
support forums so customers can help each other.
Marketing: It's Marketing's job to understand what customers need and will pay for (these are
two different things). This can be a challenge because sometimes the customers themselves don't
know. There are two kinds of Marketers: the Listeners and the Talkers. The Listeners try to
understand what people want by figuring out what their problems are and finding out what
solutions will work. The Talkers tell people what their problems are and show them how the
company can solve them. Both can be successful.
Inventory is often where the biggest costs are hidden in businesses (Harrington, 1996). This is
also the first reason for choosing inventory management as the subject of this research as
discussed during the introduction. Figure 2 showed various processes taking place at the
manufacturer; for three reasons only inventory will be picked out.
First of all stocks are responsible for a large part of the total working capital costs: up to about
one third (Goor & Weijers, 1998). Inventory costs also represent a significant component of total
logistics costs (Coyle et al., 2003). Consequently the biggest benefits can thus be gained by
reducing these costs (using ERP according to expectations). Working capital invested in stocks
could also have been a very useful resource when it could have been used otherwise (Wild,
2002), (Fawcett et al., 2007). Capital invested in stocks is thus, from a company-perspective, a
‘useless’ waste of money. Cost reductions are required by the market in order to keep offering
competitive products and services; reducing the working capital costs using more efficient
inventory management is one way to achieve this goal.
Secondly stocks are a source for risks (Visser & Goor, 2004), (Fawcett et al., 2007). For example
stock may catch fire, can be stolen, damaged or may decay over time. Consequently these events
might influence the production process and could even cause it to stop and orders are delivered
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too late accordingly. If stock levels are lower the related risks will also be reduced. Risks caused
by maintaining stocks are again related to costs, because stocks have to be stored secure and
have to be protected against these risks, which costs money.
A third reason to focus on inventory (management) is because inventory costs are some of the
easiest to identify and reduce when attacking supply chain problems (Johnson & Pyke, 2001).
Budgets are often under pressure and costs have to be reduced to keep up with the competition.
In accordance working capital costs will have to be reduced; optimizing internal logistics is a
way to do this in a relatively easy manner (Ploos van Amstel, 2008). ERP is presumed to enable
stock reductions and thus as a consequence able to reduce related costs and risks. Inventory
management aims to control materials and related costs and finance.
The biggest ERP vendors are SAP, Oracle and Microsoft. Most ERP packages evolved from one
specialty to various other business activities. ERP software offered by SAP for example,
originated from manufacturing i.e. from the need to efficiently plan the materials required for
production (Klaus et al., 2000). This software evolved and started to incorporate new
functionality like sales planning, capacity management and scheduling. Finally the functions of
these systems were further extended beyond manufacturing, and encompassed finance, sales,
distribution, and human resources as well.
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because the gathering and centralized storage of data in order to create more business insight is a
key characteristic of BI. Furthermore, most of the reporting that is done within ERP concerns BI.
Because ERP is strongly related to the field of Business Intelligence and performance
measurement, this technology is described in detail first. Due to its holistic approach towards
business processes within an organization the description of this technology supports the
identification of typical inventory management business process, required later on, as well. In the
end hypotheses concerning ERP are formulated as a way to see how the performance
measurement tool functions, and therefore the background of ERP needs to be described first as
well. Hypotheses concerning other technologies might have been chosen also, however due to
the significance of the ERP market it is interesting to take this technology as an example. The
introduction already mentioned the significance of this ERP-market; in 1997 for example, $10
billion was spent on the purchase of Enterprise Resource Planning systems (Umble et al., 2003).
In 2002 the ES market grew about twice as big, to about $20 billion (Klaus et al., 2000). Annual
growth rates around thirty percent were seen (Umble et al., 2003). These numbers clearly
illustrate the rapid growth and significant size of the ES market and are important reasons to
focus on this market.
Thermoplastics: These types of plastics become soft when heated, they can be molded or
shaped with pressure when in plastic state and, when cooled, they solidify and retain the shape or
mould. Some common thermoplastics with their uses and properties are as follows: -
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Used for making blow moulded products (various types of containers, water bottles), pipes,
injection moulded products (storage bins, caps, buckets, mugs), films (carrier bags), etc.
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Recycling of plastics must be carried out in such a manner that it minimizes the pollution level
throughout the process and, as a result, increase the efficiency of the process and conserve the
energy. Plastic recycling technologies have been divided into four general types-primary,
secondary, tertiary and quaternary.
Primary recycling includes processing of scrap/waste into a product with features similar to the
original product.
Secondary recycling involves processing of waste plastics into products that have characteristics
dissimilar from those of original plastic products.
Tertiary recycling, basic chemicals and fuels are produced from plastic scrap as part of the
municipal waste stream or as a segregated waste.
Quaternary recycling reclaims the energy content of the scrap plastics by burning/incineration.
This process is not in use in India.
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• Incineration with energy recovery – PVC has a heat value of approximately 19 megajoules per
kilogram (MJ/kg), which is similar to brown coal, and higher than the average heat value of
municipal waste (11 MJ/kg) used to generate electricity. Therefore, it can make a useful
contribution as a fuel for power generation through waste incineration.
• Mechanical recycling – This option has been used in PVC production and processing for many
decades. The largest proportion of unmixed PVC waste flows directly back into production and
the PVC industry has developed a number of initiatives for the recovery of post-consumer waste
that are well established in the market.
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Feedstock recycling: Feedstock recycling is more suitable for unsorted plastic mixtures and
waste streams containing composite materials. These processes involve (usually) thermal
treatment of the PVC waste stream with recovery of hydrogen chloride that can then be returned
to the PVC production process or used in other processes.
3.Shredding of wastes
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As we can see there are several departments in manufacturing unit. Each department serves its
output to next department which nothing but input for that next department. So each department
is depending on each other and hence coordination is necessary among all.
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To smoothen the manufacturing process there should be one control who can inform all
departments about the activities of their predecessor and successor. And according to that they
can decide changes which are necessary again by informing to project head. To reduce and
utilize the scrap fully again coordination plays important role. Below we can see the analysis
done by me, using production data & slitting data to find out the reasons.
Batch is prepared for different SP as per priority and item code formation. The SP is important at
every stage of production because it is common plan followed by all. Planning department
prepare slitting plan for different order using planning software called Xtrim. It gives best plan
by combining different orders with maximum productivity. The ideal case is mixing should give
input slightly more than planned weight which includes the predicated scrap due to evaporation
and due to some technical problem at the time of production normally 8% more than SP Kgs.
Then slitting should cut the rolls which are made for the particular SPs and what mentioned in
that SP. After that the dispatch department should dispatch only those spools which are cut
against the order. But as it cannot be practical case because the scrap is not always 8% of input,
small order quantity and some machine limitation and off course some manual error.
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Analysis Report:
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2. Winding Slippage
Case Study
Top and bottom roll removed from every jumbo roll on an average of 6-7 Kg, in some cases we
witnessed more than 16 Kg rejection in top and bottom layer
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Major reasons
Possible Remedies
o Keep each and every roll on pallet directly from winder.
o Put a cushion on battery stacker fork in order to avoid fork impression on roll.
o Remove only the rejected portion of roll instead of removing the whole layer.
o Keep the jumbo roll to be loaded near the hoist, Avoid pushing of roll on Floor.
Put a cushion on battery stacker fork in order Remove the roll from stand using pallet for
to avoid fork impression on roll slitting
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Unload the roll directly to pallet using Weigh the roll with pallet
stacker
2. Winding Slippage
Case Study
There is winding slippages in Jumbo roll from calendar. In slitting this leads to rejection in a
large amount.
Major Reasons
Unload the roll directly
o Direct loading of slipped roll in slitting m/c without rewinding.
to pallet using stacker
o Improper Slitting M/c Speed.
Possible Remedies
o Extra care should be given in slipped jumbo roll slitting (like Proper M/c Speed)
There are cases where the width of jumbo roll from Calendar may have more width than actually
planed this leads to extra side trim during slitting of roll.
Major Reasons
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o The tolerance limit was set as 5~ 10 mm in calendar which causes extra side trim.
o Odd size orders are unable to achieve using our Calendar line in optimized manner
Possible Remedies
Case Study
There are programs which are given from old stock. In such cases width parameters are not
prioritized.
Possible Remedies
Have detail look on all parameters before giving program from stock.
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o Monitor and record each and every defect with actual weight.
o Educate the workers in rejections and convey what company is losing in money terms
o Display boards can be used to convey the amount of rejection in each shift in each M/c.
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o All the deviations (like extra side trim) should be checked and proper instruction to be
given by supervisor.
7. Progress
The project started with production report and slitting report. After I studied and analyzed five
months data I found different causes for scarp management. To reduce these problems I have
suggested corrective actions and some of these are implementing day by day. But now I am
trying to find out preventive action which can remove the problem. Till now I have find scrap
associate with slitting and studied scrap associate with calendaring process. Also the scrap
generates in calendar production is recorded in daily register. So scrap usage and scrap
generation should be tracked in system. After collection of data of recent months I have given
some suggestion to reduce scrap and get positive result from that. Next aim is to utilize the
generated scrap most effectively.
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8. Conclusion
If we consider overview of project we can easily say that small errors can raise big problems. As
excess inventory affect on balance sheet it should be controlled. Report contains the reasons for
scrap in slitting process. There are several small reasons behind these major reasons. But the
common problem I found during project is communication and lack of coordination between
different departments. Although ERP system is installed in company, there are several
modifications need to do to improve efficiency. After analysis I concluded with remedies.
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9. References
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Supply Chain Perspective 7th edition. Ohio: South-Western.
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