Productivity Improvement in Milk Industry through PDCA Approach- A Case Study

Transcription

1 International Journal for Research in Technological Studies Vol. 2, Issue 6, May 2015 ISSN (online): Productivity Improvement in Milk Industry through PDCA Approach- A Case Study Mamta Patel 1 Dr. Raj Kumar 2 1 M.Tech Scholar 2 Director 1,2 Department of Mechanical Engineering 1,2 Galaxy Global Group of Institutions, Ambala, India Abstract The productivity (recovery) is very important factor in milk industry. It is evident that TQM are popular and effective, as a productivity and quality improvement strategy. TQM can help to improve low production and quality of the product. A large number of research papers have been published regarding this concept of TQM. In present paper, some technical factors are considered to improve the productivity of sugar industry by implementing the TQM with help of PDCA approach. Paper considered technical factors seriously so that the productivity will be improved. Keywords Total Quality Management, PDCA, Productivity, Milk Industry I. INTRODUCTION A milk industry is an industry which processes the raw milk into the processed milk. A milk industry works throughout the year without stopping the work. A milk industry receives the milk from different regions and areas. Different types of milk are received by the plant for example Buffalo milk, cow milk, goat milk, sheep milk, mixed milk, standardized milk, full cream milk, recombined milk, toned milk, double toned milk, and skimmed milk as laid down under PFA Rules. The processed consumed in domestic uses. Milk industry has to work to control the milk fat, starch, cellulose, glucose etc. India is the world s largest producer of dairy products by volume, accounting for more than 13% of world s total milk production, and it also has the world s largest dairy herd. As the country consumes almost all of its own milk production, India was neither an active importer nor an exporter of dairy products prior to year However, since the implementation of Operation Flood Programme, the situation changed significantly and imports of dairy products reduced to very small quantities. From 2001, India has become a net exporter of dairy products and after 2003 India s dairy import has dipped while exports have increased at a fast rate. Yet the country s share in global dairy trade still remains at minor levels of 0.3 and 0.4 percent for exports and imports respectively. This is due to the direct consumption of liquid milk by the producer households as well as the demand for processed dairy products that has increased with the growth of income levels, which have left little dairy surpluses for export. Nevertheless, India consistently exports specialty products such as casein for food processing or pharmaceuticals. The Indian dairy sector is also different from other dairy producing countries as India places its emphasis on both cattle and buffalo milk. In 2010, the government and the National Dairy Development Board have drawn up a National Dairy Plan (NDP) that proposes to nearly double India s milk production by This plan will Endeavour to increase the country s milk productivity, improve access to quality feeds and improve farmer access to the organized market. These goals will be achieved through activities that focus on increasing cooperative membership and growing the network of milk collection facilities throughout India. Despite its huge production volume, India nevertheless faces a milk supply gap due to increasing demand from a growing middle class population. Estimation suggests that Indian dairy production is growing at a rate of about four percent per year, yet consumer demand is growing at approximately double that rate. Apart from the rapidly increasing demand for milk and dairy products, other reasons such as the increased cattle feed cost and low availability of dairy farm labour in the rural areas have also resulted in increase in the cost of production. On the other hand, the strong pressure from EU to open up its market as well as the proposed free trade agreement with Australia and New Zealand may also put India s dairy sector in the risk of being jeopardised. In order to maintain the development of its dairy industry, focus needs to be placed on several areas. First, cost of production has to be reduced through increasing productivity of animals, improve animal health care and breeding facilities and management of dairy animals. Second, Indian dairy industry needs to further develop proper dairy production, processing and marketing infrastructure, which is capable of meeting international quality requirements. Third, India can focus on buffalo milk based specialty products, such as Mozzarella cheese, in order to meet the needs of the target consumers. India is the world s largest producer of dairy products by volume and has the world s largest dairy herd. The country accounts for more than 13% of world s total milk production and is also the world s largest consumer of dairy products, consuming almost all of its own milk production. Dairying has been regarded as one of the activities that could contribute to alleviating the poverty and unemployment especially in the drought prone and rain fed areas. In India, about three fourth of the population live in rural areas and about 38% of them are poor. Therefore among these people, as well as the large vegetarian segment of the country s population, dairy products provide a critical source of nutrition and animal protein to millions of people in India. Prior to year 2000, India was not noticed by most international dairy companies, as the country was neither an active importer nor an exporter of dairy products. Although India has imported some milk powder and butter oils as aid between 1970 and 1990, exports from India were insignificantly small and it was not until 2000 onwards, when Indian dairy products started having more presence in global markets. Milk production in India has developed significantly in the past few decades from a low volume of 17 million tons in 1951 to 110 million tonnes in Copyright IJRTS 16

2 Currently, the Indian dairy market is growing at an annual rate of 7%. Despite the increase in production, a demand supply gap has become imminent in the dairy industry due to the changing consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India. This means that there is an urgent need for the growth rate of the dairy sector to match the rapidly growing Indian economy. II. LITERATURE REVIEW There is a vast amount of literature related to Total Quality Management. The objectives of review are: 1) To study the various aspects of TQM 2) To study literature related to TQM in milk industry context 3) To identify the effect of TQM in milk Industry Literature has been reviewed through reputed Indian and International journals, books, conference paper etc. The literature collected is conceptual article, survey papers, reviewed papers and case studies. The most comprehensive method to improve the recovery or productivity is TQM with PDCA approach. Z. Zhang (2001) study about the implementation of total quality management. He obtained a number of conclusions in his research. First, the instruments for measuring TQM implementation and overall business performance are reliable and valid, and can be used by other researchers to test the effects of TQM implementation on overall business performance. The reliable and valid instruments can also be used in testing the time dimension of TQM implementation. Second, several conclusions have been obtained from testing the two theoretical models, which are listed as follows: TQM implementation has positive effects on employee satisfaction, product quality, customer satisfaction, and strategic business performance Leadership has positive effects on employee satisfaction and strategic business performance Employee participation, recognition and reward have positive effects on employee satisfaction Education and training does not have a positive effect on employee satisfaction Supplier quality management, evaluation, product design, and quality system improvement do not have positive effects on product quality Vision and plan statement, process control and improvement have positive effects on product quality Quality system improvement has a positive effect on strategic business performance Customer focus has a positive effect on customer satisfaction Employee satisfaction has positive effects on product quality and customer satisfaction Product quality has positive effects on customer satisfaction and strategic business performance Customer satisfaction does not have a positive effect on strategic business performance. Third, the case study reveals that the TQM implementation model developed in this study is applicable in practice. This model can be used by Chinese manufacturing firms to improve their TQM implementation efforts. The case study further shows that this TQM implementation model can be used to self-assess firms quality improvement efforts and measure their progress over time. Through using this model, firms can quickly identify which areas urgently need improvement. Thus, the resources can be allocated more wisely and more effective improvement plans can be formulated. G.Karuppusami (2005) suggests Deming s Plan- Do-Study-Act (PDSA) cycle based approach to develop and sustain TQM. The least developed programs of TQM in firms are identified in this proposed method and sorted in the lowest to highest order of development. The result will help the top management in setting out priorities to achieve sustained growth of TQM process. The PDSA cycle suggested for TQM sustainability consists of four steps: (1) plan for TQM, (2) Implement TQM, (3) study and measure the level of implementation of TQM and (4) take necessary actions to improve the less developed programs of TQM. In this research, the level of implementation of TQM is measured with the help of quality index calculation algorithm. This paper helps to identify the 1) The problem areas of TQM implementation correctly identified by the proposed PDSA method. 2) Tracking of TQM programs and departments that are substantially impacting the TQM implementation in the company. 3) Specific recommendations that bring about improvements in those least developed TQM programs. M. Sokovic et. al. (2010) Says the methodology of implementing continuous quality improvement can be varied in different organization. Regardless of the methodology of the continuous-improvement programmes, every organization needs to use a proper combination and selection of quality tools, methodologies and techniques in their implementation process. It is very important that the tools, methodologies and techniques are properly selected according to the need and demands of the team and further applied correctly to the appropriate process and approach in organization The PDCA cycle (Deming's circle) is more than just a quality tool. The PDCA cycle is a fundamental concept of continuous-improvement processes embedded in the organization s culture. It is simple to understand and should be used by a large number of people in the company (also through-out standard ISO 9001:2008). The most important aspect of PDCA lies in the act stage after the completion of a project when the cycle starts again for the further improvement. In a central process, the actual results of an action are compared with a target or a set point. The difference between the two is then mentioned and corrective measures are adopted if the disparity becomes large. The repeated and continuous nature of continuous improvement follows this usual definition of control and is represented by the PDCA (Plan-Do-Check-Act) cycle. This is also referred to as the Deming circle, named after W. E. Deming. Another variation of PDCA is PDSA (Plan, Do, Study, Act). In this paper author tell about the application of PDCA as, The application of the PDCA cycle has been found more effective than adopting the right first time approach. Using of the PDCA cycle means continuously looking for Copyright IJRTS 17

3 better methods of improvement. The PDCA cycle is effective in both doing a job and managing a programme. The PDCA cycle enables two types of corrective action temporary and permanent. The temporary action is aimed at results by practically tackling and fixing the problem. The permanent corrective action, on the other hand, consists of investigation and eliminating the root causes and thus targets the sustainability of the improved process. R.K Dixit et. al. (2011) Total quality management (TQM) is a modern management philosophy and a journey, not a destination. TQM is a systematic management approach to meet the competitive and technological challenges which has been accepted by both service and manufacturing organizations globally. It defines the quality with emphasis on top management commitment and customer satisfaction. It focuses on attaining and maintaining impeccable quality in manufacturing as well as services, by improving the performance of products, processes and services to satisfy customers' expectations. Manufacturing and service industries recognize TQM differently. R.M Aole (2013) His aim is to provide good understanding regarding philosophy and teachings of Quality Gurus. Over the past few decades, writers such as Deming, Crosby, Juran, Feigenbaum, Ishikawa, Taguchi and others have developed certain propositions in the area of quality management. Their insights into quality management provide a good understanding of quality management principles. An example of one such proposition is: quality is a responsibility of the whole organization, rather than of the quality department. After the approaches to TQM of the five quality gurus have been reviewed, he concluded that each has his own distinctive approach. Nevertheless, the principles and practices of TQM proposed by these quality gurus do provide the author with a better understanding of the concept of TQM. Their insights offer a solid foundation for conducting this study. Although their approaches to TQM are not totally the same, they do share some common points which are summarized as follows: It is management s responsibility to provide commitment, leadership, empowerment, encouragement, and the appropriate support to technical and human processes The strategy, policy, and firm-wide evaluation activities are emphasized. Employee education and training is very important Employees should be recognized and rewarded for their quality improvement efforts. It is very important to control the processes and improve quality system and product design. The emphasis is on prevention of product defects, not inspection after the event. K.A.Chandrakanth (2013) Says PDCA (plan do check act) is an iterative four-step quality improvement and management agile process typically used for the better of the business strategy. PDCA is a successive cycle which starts off small to test potential effects on processes, but then gradually leads to larger and more targeted change. Plan, Do, Check, Act are the four components of Work bench in Software Testing. However, diverting from the exact essence of what this concept primarily applies to, we shall be using this concept more towards achieving an individualistic goal which will finally lead to a bigger picture enhancement and improvement rather than applying this to the process itself directly. Though the method is applicable to process, business and organization as generally utilitized by the industry, but this is an attempt to try and adopt the same at an individual level to bring productivity improvement in individuals which will trigger a improvement in process and quality for the organization at a bigger level. The concept itself suggests that small baby steps initially would one day lead to bigger marathons in future, so the logic is customized to see how this method would help an individual to become more accountable which will untlimately enable a group, a product line and an organization to be able to make a difference in improving the overall quality. Every individual has a routine way of leading life both professional and personal and by adopted the PDCA concept. The method tries to bring in changes to the traditional ways how an individual does an activity and with few improvements, the overall productivity can be increased that will ultimately benefit the organization. Once the method is applied to an individual for making them more productive, we shall then apply the same to a group, product line and organization to replicate the success story for a positive growth and development. III. OBJECTIVES OF PRESENT WORK 1) Installing quality culture. 2) Focus on employee involvement and employee participation, training, and motivation. 3) Focus on operations including continuous improvement. 4) Focus on customer. 5) Strategic competitive management IV. PROCEDURE USED FOR THE PROCESSING OF MILK Milk is the common necessity of all human being. It is a natural liquid that contains maximum amount of calcium and other nutericians. Milk is directly taken by the buffalos, cows, goats etc. so this unprocessed milk have some types of germs that can make us unhealthy and seek. Processing of milk is an important step before using it. Milk can be used in the same phase or it can be processed into other phases. Like ghee, butter, yogurt, cheese, lassi etc. are other phase of the milk which have good taste as well as good for health. Different processes used in milk processing are:- Raw milk reception in cans/tankers. Weighing of total milk received. This is necessary because payment to the farmers is done on this basis. Filtration of milk. The process is required because when milk is transported from one place to another place and during loading and unloading of milk there large number of impurities is added to the milk. Chilling of milk. It is a process in which milk is cooled down to a temperature below 5ºC. Below this temperature bacteria cannot be active. Pasteurization of the milk. The pasteurization is a process of heating the milk above 76ºC. Heating of Copyright IJRTS 18

4 milk is required to eliminate the bacteria of the milk. During the chilling of milk only the activity of the milk can be slow down but the bacteria cannot be dead by the chilling of milk so heating of milk is a necessary process to save the milk from spoilage. Chilling of Pasteurized milk is done in chilling centre. Chilling of milk is done so that milk can be stored for some time without spoilage. The processed milk filled into the pouches. Dispatching of the processed milk. It is the process in which each pouch of the milk allotted a series number and some specification code. It consists of date of dispatching. V. PROBLEM SOLVING TECHNIQUES It is observed that various techniques have been listed by researchers like: Six Sigma DMAIC PDCA DFSS RADAR Matrix Raj Kumar and all analyze and recommended PDCA approach to identify and analyze the problems. VI. METHODOLOGY The Deming s wheel is very useful in solving these types of problems. The Deming s PDCA cycle denotes the continuous improvement by repeating the basic cycle of:- PLAN - Get the data 1) Analyze the problem 2) Plan the solution DO - Implement the plan CHECK - Measure the changes ACT - Modifications are needed as long as significant improvements are obtained Fig. 1: Advanced PDCA Cycle Figure 1 show the PDCA cycle in detail. In the Do stage or implementation stage it is possible to involve a mini-pdca cycle until the issues of implementation are resolved. VII. PDCA APPROACH FOR IMPLEMENTATION OF TQM Team formation for PDCA approach The steering committee was formed from various departments of industry by taking self as a facilitator. After steering committee was formed the group leader and deputy leader was selected from the supervisors of the department. After selection of group leader worker are invited to join the team voluntarily to work for implementation of PDCA. Brain storming session In the meeting brain storming session was conducted to find out the views of quality members about the problems they had faced in season time. In brain storming session each member were free to talk about the problems which affect the production and quality. First meeting: First meeting was held on 31 st August In this meeting the concept of PDCA approach was explained to both management persons and workers. The benefits of techniques were explained in detail during the first meeting. It had been explained to workers that how PDCA develops mutual understanding between them, improve their knowledge, improve the communication and increase the management self respect for workers. It has been observed in brain storming session that industry is facing a problem with quality and productivity of the milk. Second meeting: Second meeting was held on 21 st September In this meeting the brainstorming session was conducted and possible causes were discussed. In this session team members were ready to talk on the problems they had faced in their season work. Personals from every level suggested the possible causes from the problems discussed above. All the causes discussed by the members were recorded and these are: 1) Causes related to men: Lack of motivation Lack of knowledge Inadequate training 2) Causes related to materials: Change in quantity of milk supply per day. Quantity of fat present in milk is different for different suppliers. Long distance transportation of milk 3) Causes related to machines: Old technology based machines. Plant layout and process layout. Third meeting: The third meeting was held on 19 October In this meeting all the causes discussed above verified by inspecting physically the problematic areas and then dividing the causes in three main categories. So that recommendation for the concerned departments can be made, this in continuation makes the implementation easy. Recommendations have been made for improvement in three categories: 1) Management causes Lack of motivation Lack of training 2) Technical Causes Plant layout and process layout 3) Other Causes Energy conservation Change in quantity and quality of milk supply per day. Long distance transportation of milk Copyright IJRTS 19

5 VIII. RECOMMENDATION AND RESULTS 1) Recommendation In Plant Layout It has been observed by team through physically that plant layout is not proper for men and material movement. The milk processing area consist of many machines and tanks for the storage of milk, ghee, butter and some sub products of milk. Milk processing unit consist of two raw milk tanks (RMT) and two pasteurized milk tank (PMT). These tanks had arrangement as shown in fig 4.1 all four tanks was arranged in a quarter arrangements. This arrangement had some problems in material movement as well as in men movement. The pasteurized milk had to travel long distance for reaching the PMT 1 and PMT 2.This arrangement also effect the men movement, it have to travel long distance. Men movement was like a rectangular path around the four tanks and crossing between the tanks also was not possible in that process layout. So there was need to change the process layout. After the study of process layout team proposed a new process layout. Now the process layout consists of four tanks that are arranged in a line. After changing the arrangement of the tanks the movement of the materials and men become easy and less time consuming. Movements of men and material Raw milk from chilling tank to RMTs Raw milk from RMTs to milk pasteurizer Pasteurized milk to PMTs Movement of men near RMTs and PMTs Time taken according to previous layout 4minuts 30seconds 4minuts 5minuts 7minuts 40seconds around the tanks Time taken according to proposed layout 3minuts 2minuts 40seconds 3minuts 2minuts 50seconds in straight path Table 1: Time Saving In New Plant Lay Out Time difference 1minute 30seconds 1 minute 2minuts 4minuts 50 seconds 2) Recommendation In Energy Saving: In boiler section Milk Plant, Sirsa was having two boilers of capacity 4 ton/hour each using furnace oil as fuel. The cost of furnace oil being higher, the steam cost was higher. During flush season when the consumption of steam is more in terms of quantity & pressures the furnace is run on pet coke. The liquid fuel used during these days or throughout the year was very costly. Petcock is a fossil fuel and a consumable source of energy. It has too much cost as well as transportation cost. The steam generation becomes costly by the use of fossil fuel or petcock. After the study the primary technology proposed for the project activity involves direct combustion of rice husk in a fluidized bed combustion chamber to generate thermal energy. Thus to reduce the steam cost Milk Plant, replaced one Furnace Oil Fired boiler into Pet coke/rice Husk fired boiler by designing the dual fuel furnace. During flush season when the consumption of steam is more in terms of quantity & pressure the furnace is run on pet coke & during lean season when steam consumption is low the same furnace is shifted to rice husk. Comparison of rice husk and pet coke is given in table PARAMETERS RICE HUSK PET COKE CALORIFIC VALUE (in BTU) CONSUMPTION (in kg per hour) 700 kg/h 400 kg/h STEAM PRODUCED (by one kg burning of fuel) 4kg 8kg PRICE (in Rs per kg) (Tender from ) 3.14 per kg 8.5 per kg Table 2: Pet Coke and Rice Husk Comparison Saving Comparison: ITEM CONSUMPTION PER WEEK COST PER WEEK PET 56000kg Rs COKE RICE 98000kg Rs HUSK SAVING PER WEEK Rs Table 3: Saving Per Week In refrigeration section The plant was using the tube type heat exchanger in refrigeration section. Tube type heat exchanger had low heat transfer capacity. So there was the need of change in the heat exchanger. We proposed to change the tube type heat exchanger into plate type heat exchanger. Capacity of Plate Heat Exchanger -125 ton Saving in running per hrs kw Kw Saving per week kw Savings per week - Rs IX. CONCLUSION It is the well-known fact that the milk industries have to face problem of fluctuating demand and better quality demand. People are not aware of the basic reasons that cause the low production and quality of their unit but they want to achieve the higher production, good quality and at the same time higher profit margins. There is lack of new technology awareness in milk industry. The production and quality can be improved by applying total quality management techniques. The present study shows the improvement in 1) Improvement in Management plans:-good management plans satisfies the workers of any industry. Men power is a basic requirement of any industry for growth and high quantity and quality output. Thus change in the management plan it improve the workers skills and quality of work also. Copyright IJRTS 20

6 2) Improvement in Plant Layout and Process Layout change:- The result of change in plant layout is the workers work satisfaction. Now the men and material movement is easy and less time consuming, materials can be handled safely. It reduces the risk of miss happening. Now the can do their work properly and in less time with less confusion. 3) Improvement in energy savings:- The change in boiler and heat exchanger does not affect the production directly but it indirectly affect the production by the more saving of money per annum. So energy saving plans should be adopted for any type of industry. REFERENCES [1] G.Karuppusami et. al. Sustainable development of total quality management Deming s PDSA cycle. The International Journal for Quality and Standards. [2] K.A.Chanderkanth (2013), Paper On Plan Do Check Act (PDCA) Improving Quality Through Agile Accountability. [3] M. Sokovic (November 2010). Quality Improvement Methodologies PDCA Cycle, RADAR Matrix, DMAIC and DFSS [4] R.M.Aole (December2013). Quality Gurus: Philosophy and Teachings. International journal of research in aeronautical and mechanical engineering. Vol.1 [5] Raj Kumar, Dixit Garg, T.K. Garg, (2011) "TQM success factors in North Indian manufacturing and service industries", The TQM Journal, Vol. 23 Iss: 1, pp [6] Zhihai Zhang (Feb. 2001). Implementation of Total Quality Management. Copyright IJRTS 21