matrix ceramic

8/8/2019 Matrix ceramic

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A PROJECT REPORT OF POM SUBJECT

Presented to theProf. Sandip Trada

Tolani Institute of Management Studies

On02nd April, 2010

ByGroup number: 4

Division BBatch 2009-2011

Rollno.

Studentname

73 Chiragpadaliya

80 Rajkumarpatel

87 Chetanpujara

108 Milan

Thacker

Production Operation Management | TOLANI INSTITUTE OF MANAGEMENT

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115 PintuVaishnav

117 Anil Vekriya


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PREFACE

As per the rules of the TOLANI INSTITUTE OF MANAGEMENTSTUDIES (TIMS) in the syllabus of PGDM Semester 2 each group of six

students has to visit an industry. The aim of the visit is to get somepractical knowledge of the management fairs.

We have completed our project at MATRIX CERAMIC LIMITEDsituated at Morvi city. In this report we tried our level best toaccommodate all types of the information, which we gathered during ourproject in MATRIC CERAMIC LIMITED.


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DECLARATION

We undersign members of group number 4 are students of PGDMsemester - 2, at TOLANI INSTITUTE OF MANAGEMENT STUDIES, ADIPUR;

hereby declare that project report is our original endeavor that the workbeing supervises by MR. Sandip Trada assistant professor of TOLANIINSTITUTE OF MANAGEMENT STUDIES.

Thus, the appropriate data and the required informations wereproduced from the companies under study; therefore, acknowledge thatthe project has not been in any case submitted to any other institute ofhigher learning for any degree or diploma.

DATE: -

SIGNATURE: -

Roll

no.

Student

name

Signa

ture73 Chirag

padaliya80 Rajkumar

patel87 Chetan

pujara108 Milan

Thacker115 Pintu

Vaishnav117 Anil Vekriya


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ACKNOWLEDGEMENT

We wish to express our gratitude to management of MATRIXCERAMIC LIMITED for giving us an opportunity to be a part of their esteemorganization and enhance our knowledge by granting permission to doour project under their guidance.

We are grateful to Mr. Kishore Patel (Chairman), Mr. Satish Patel(Production department), Mr. Raju Patel (Administration department) andall the employees of Matrix ceramic limited who guided us and providedtheir valuable guidance and cooperation during the course of the project.

They provided us all the information and support whenever needed that

has been instrumental in completion of this project.

Last but not the least we are grateful to all the staff members ofMatrix ceramic limited, for their kind cooperation and help during thecourse of our project.

We are also thankful to Mr. Sandip Trada who helped us as and when

required with his guidance.


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INTRODUCTION TO CERAMIC INDUSTRY

Ceramic Industry in India is about 100 years old. It comprisesceramic tiles, sanitary ware and crockery items. Ceramic products aremanufactured both in the large and small-scale sector with wide variation

in type, size, quality and standard. India ranks 7th in the world in term ofproduction of ceramic tiles and produced 200 million sq. meters ofceramic tiles, out of a global production of 6400 million sq. meters duringrecent year. State-of-the-art ceramic goods are being manufactured inthe country and the technology adopted by the Indian ceramic Industry isof international standard.

There are, at present, 16 units in the organized sector with an

installed capacity of 21 lakh MT. It accounts for about 2.5% of worldceramic tile production Ceramic tiles industry has been growing at about12% per annum. In India, per capita consumption of ceramic tile is 0.15sq. mtr. per annum compared with 2 sq. mtr. per annum in China and 5-6sq. mtr. Per annum in European countries. With the growth in the housingsector the demand of ceramic is expected to increase. Indian tiles arecompetitive in the international market. These are exported to East andWest Asian countries. The exports during last year were about Rs. 180corer.

Sanitary ware is manufactured both in the large and small sectorwith variations in type, range, quality and standard. At present there are7 units with capacity of 86,500 tons per annum and, there are about 200plants with a capacity of 50,000 tons per annum in small scale sector. Theindustry has a turnover of Rs 400-500 crore. This industry has beengrowing at the rate of about 5% per annum during the last 2 years. Thereis significant export potential for sanitary ware. These are presently beingexported to East and West Asia, Africa, Europe and Canada. The exports

were of the order of Rs.60 crore during current year.Pottery ware signifying crockery and tableware are produced both in

the large scale and small-scale sector. There are 16 units in the organizedsector with a total installed capacity of 43,000 tons per annum. In thesmall-scale sector, there are about 1200 plants with a capacity of 3 lakhtons per annum. Majority of the production of ceramics tableware is ofbone china and stoneware. This industry in India is highly labor intensivewhile in USA, UK, Japan and other countries there is full automation.

Quality of finished products, design and shapes in India are still below


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international standards. Equipment is old and need to be updated to meetinternational standard. The export of pottery ware during 2003-04 was ofthe order of Rs. 85 corer. Ceramic tiles, ceramic wall tiles, ceramic floortiles, ceramic glazed tiles and ceramic sanitary wares are manufactureand supply by Matrix Ceramic Industry in UK, USA, and India and all overworld from last 5 years.


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INTRODUCTION TO CERAMIC TILE INDUSTRY

Wall Tiles

Ornamenting walls with the most stunning and fashionable wall tilesis the latest buzz. Tiles with diverse shapes, sizes and designs are atevery nook and corner of the home dcor coliseum to make your homelook vivacious and lively. Offered at the finest prices the wall tilesrejuvenate your space with style and give it a fresh look.

Floor TilesStanding tall in the tiling arena, floor tiles are complete scene

stealers. Decorating the flooring with the finest possible designs ofceramic, marble, glass, porcelain, granite and other form of tiles makes itabsolutely breathe taking. Mind blowing floor tile designs and colors addto the beauty of the place and puts an 'A star' on its glamour quotient.

Vitrified TilesHard core and strong vitrified tiles is an absolute choice as sturdy

tiles for homes and offices. Proving superior to marble and granite tiles,

these stain resistant tiles are scratch proof and demand low maintenancecost. Well-polished, these long lasting tiles offer good quality, attractivelooks and thus are owner's pride.

Sanitary WareAdorning the bathrooms and special rooms with the most elegant

and stylish sanitary ware is the latest cult. With vibrant and eye catchingcolors, the bathroom decorations make the space a visual treat and raise

its glamour quotient. Fashionable sanitary ware in the finest designs getsa thumbs-up from designers and style gurus! More types are offer by us.In home improvement project, tiles are plays a very vital role and itsnecessary to choose best ceramic tile as per condition and budget.


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CERAMIC TILE INDUSTRY IN INDIA

In India, Ceramic tile industry emerged in the late 1950s. Ceramic Tile Industry can be classified into three categories namely wall tile

segment, floor tile segment and vitrified and porcelain tile segment. InIndia the floor tiles segment is growing at a faster rate. The market forthe wall tiles is rising at a relatively slower pace and this has resulted inhigh excess capacity in the wall tile segment. The entry of two newproduct categories Vitrified tiles and Porcelain tiles has increased the sizeof the market considerably. It is expected that these products willgradually take away the market from the conventional ceramic tiles (walland floor). As far as manufacturing of ceramic tiles is concerned, both theorganized and unorganized sector s play a very important role in India.

Like developed markets the financial institutions (both foreign anddomestic) are beginning to show interest in the sector. Various foreignReal Estate and Finance companies like GE Commercial Finance, TishmanSpeyer, Ascendas and Farallon Capital have entered the Indian market.

The Ceramic Tile Industry drives its demand from the Real Estateand Construction sector. Ceramic tiles find its maximum usage inresidential and commercial buildings and are also finding acceptance inother construction projects as well like airports, bus terminals etc. as theyare found more suitable at places where there is more human traffic. InIndia the construction sector is expected to do well in future mainly dueto fiscal incentives given to infrastructure development.

India is the prime destination for the IT services outsourcing. In thecoming five years at least 55 million sq.mt of extra office space must becompleted in the premium office space alone. Investment commissionreport states that the retail sales were $206 billion in 2004 and isexpected to grow three-fold in the next 10 years from $206 billion toabout $660 billion by 2015. Organized retail was only $6.4 billion and isexpected to grow rapidly to reach $100 billion by 2015. Further India isexpected to be among the top 5 retail markets in the world in 10 years.

The Ceramic tiles particularly the vitrified tiles are finding increasingusage in both these sectors and the sector would benefit from an upsurgein these areas as well.

Indian economy is poised to grow at 7-8 percent and with growingincomes and urbanization, demand for houses is slated for growth. The

increasing focus on rural areas, by government and corporates, the


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demand for housing would also increase in rural areas. The ceramicindustry will also benefit from the above developments. Increasingdemand is just one part of the story the availability of Finance is the otherpart. With the availability of loans at low interest rate and tax incentiveshave enabled the people to buy houses and build up their ownestablishment. With the increasing competition amongst both Banks and

Housing Finance Companies the people are avail of getting betterfinancing options and that too at a cheaper rate. This would furtherincrease the demand for tiles. Another important driver is the distributionnetwork of a ceramic tile manufacturing company. The distributionnetwork is critical to success in this industry.

SWOT ANALYSIS OF CERAMIC TILE INDUSTRY

Strengths Consistent growth of 12-15 percent in spite of slowdown in economy. The Indian ceramic export market is rising at the rate of 15 percent perannum.

Weakness

Not much importance given on brand building and network thuscreating hindrance for export growth. Low per capita consumption (0.15 sq.mt. p.a.) as compared todeveloped nations.

Opportunities The construction and Housing Boom to provide bolstering demand forceramic tiles.

The untapped rural market supported by a strong growth witnessed byIndian Agriculture provides tremendous potential for the domesticceramic manufacturers.

Threats Freight, supply of power and gas remains the key cost-related issuesimpacting the industry.


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Basic Customs Duty on import of ceramic tiles from China and rawmaterials imported from abroad should be corrected to prevent dumpingof tiles from China.


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INTRODUCTION TO MATRIX CERAMIC LIMITED

Matrix ceramic limited is ISO 9001 certified company situated atMorvi city. It is engage with production of floor tiles, its new plant Atomceramic limited is under construction for production of wall tiles.

The world of Matrix Ceramic, pioneers and one of the largest sellingdesigner tiles Company. In the following images you will be introduced tothe latest collection of the rarest, most unconventional and imaginativedesigner tiles you'd have ever set up your eyes on.

"The first among the equals" brand that rolls out through the state-of-the-art Italian machines which are operated under the supervision of Italiantechnology team.

Facilities of Matrix ceramic Limited:


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PRODUCTION PROCESS


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Raw material

inventory

Boll Mill

Spray Dryer

Press

Dryer line

lineLine

Glaze Line

Glaze Dept.

Killen

Sorting

Packing

Tiles

inventory


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RAW MATERIAL:

Requirement of raw materials except Chemicals are fixed inproportion, but quantity of chemicals depends upon quality of Clay.

Average lot size of clay is 20 tons, a capacity of one truck.

Sr.No.

Rawmaterial

Dailyrequirement (Inton)

1 Morvi clay 87

2 Kachchhclay

57

3 Bikaner

clay

12

4 Chemicals 65 Water Up to 170

BOLL MILL: Here various sizes of bolls are in boll mill, so during the rotation of

tank, mixture of clays grinded by bigger size balls and uniformed by

smaller size balls. Resultant uniformed mixture is directly entered into spray dryer. Boll mill has batch process of 20 tons/2hr.

SPRAY DRYER:

Grinding (Uniform powder) of lignite is used as a fuel of spray dryer. Lignite is responsible for problem of carbon dust in tiles.

(Disadvantage)


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In spray dryer, mixture of various clay flows from up to down & dryair flows from down to up, so as a result mixture of clay become dryor moisture free.

Desired temperature for production of floor tiles is 200 C. Capacity of spray dryer is 180 tons/day.

PRESS: It is a simple molding machine for mold tiles from dry clays. Capacity of press is 1400 HP, instead of standard requirement of 200

HP. Press has minimum 6 and maximum 14 strokes per minute. Stroke means one up & down movement of press mold. Length of mold is 1500 mm; within this tile size is adjusted.

There are 2 major criteria for adjustment of press stroke:o Thickness of tiles.o Corner brittleness.

DRYER LINE:


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Raw tiles after pressing directly enter into dryer line. Temperature of dryer line is 100 C. (Boiling point of Water) Desired length of dryer line for wall tiles is 40 meter. (Half of Killen

length)

Natural gas is used to maintain or achieve temperature in dryer. On an average 1 tile spend 26 minutes in dryer.

GLAZE DEPARTMENT:

This department prepares color mixture for background printing ontiles.

Color chemical quantity will vary with quality of dried raw materials.

GLAZE LINE: It is an assembly line during where, prepared glaze color applied on

glaze. Here company has maximum 3 workstations in glaze line for

maximum 3 colors printing. There are 2 types of color printing:

o Background printing.o Design printing.


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KILLEN:

Length of Killen is 90 meters. Temperature of Killen is 1170 C, maintain by natural gas. Killen is divided in 3 zones.

SORTING:

Finally tiles are divided in 4 different grades. First, second, third and Reject grades in the ration of 80, 12, 06, and

02. Tiles are graded on following most common problems:

o Carbon dusto Glaze dusto Improper printingo Crack in bodyo +- dimensiono +- size (1 mm)


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PACKAGING: Different color boxes are used for different grade tiles. Each box contains 10 tiles or 10 feet2.

STORAGE OR WAREHOUSE:

Entry & exit of raw materials has separate path for movement offinish goods.

First red arrow shows entry direction & Second arrow shows exit ofdirection.

Here first class goods occupy almost 50% of total warehouse area,because production of first class goods is also 80% of totalproduction.

PRODUCTION SCHEDULE: Two days prior planning. Production will continuously run for 24 hours in 3 shifts. If production is stopped, it almost takes gas of 5 lakh rupees to

achieve 1170 C.

LABORS:

All are on contract basis. Multi skill workers. All are on rotation base work.

SAFETY EQUIPMENT:

Hard hat cap Ear protection Safety gloves Back belt


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PRODUCTION PLANT LAYOUT

Production plant is designed in such way that, company canminimize material handling cost & waste of raw materials.

BENEFITS OF LOCATION Favorable labor climate:

o Labors are Cheap & disciplined. Proximity to market:

o Morvi emerges as a ceramic hub. So buyers come at Morvi topurchase Tiles.

Quality of life:o Morvi has very good facilities regarding Bank (Almost all

nationalized bank as well as Private also), Hospital(Multispecialty hospitals), Education institutes.

Proximity to resources:o Clay of Morvi, Kachchh is almost nearby Morvi.o Almost all type of consultancy services has been situated in

Morvi. Transportation facility:

o Kandla & Mundra ports have been distance within 200 km.o Morvi is directly link with National Highway -8.B.

PRODUCTION PLANT LAYOUT


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Core processes:-o Order fulfillment process:

Here company focus on the planning of productionschedule of various varieties of tiles.

Company schedule the production in such a way thatminimize set up cost as well as time.

o Customer relationship process: Company focus on time delivery of tiles. Company scheduling its production to ready goods one

day prior than promised date. Company has very strict policy regarding credit time of

customer.o Supplier relationship process:

Company also make on time payments to their suppliers. If company found some quality related problems of raw

materials, company change its supplier quickly. (Minimumswitching cost)

Supportive processes:-o Raising fund:

Company raises funds from its owner only.o Recruitment:

Company has not defined recruitment system.o Welfare of workers:

Company provides one time health checkup in one monthfor their workers & Employees.

o Logistic activities: Generally, transport of goods has been carried out by its

suppliers & customers.

CAPACITY UTILIZATION

Company has a capacity of producing 6000 boxes / day. Right now company produces 5000 boxes / day. So capacity utilization of company is approximately 83% (5000 /

6000).

RESOURCED FLEXIBILITY Here workers are working in their respective department only. Company cannot be changed worker to other department because

special skill is required for particular department.


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Workers can be adjusted within department in different workstations.

FIXED AUTOMATION Here manufacturing process is able to produce only one type of

product (Floor tiles), so it has fixed automation.

MANUFACTURING PROCESS STRUCTURE Structure of manufacturing process is continuous line flow, because

output of one station is input of other workstation. Manufacturing process has been carried out in 24 hr. & 360 days in a

year, because huge cost is incurred to achieve 1170 C in Killen.

PRODUCTION STRATEGY Company has been follow 2 types of production strategy:

o

Make to stock: Somany ceramic Ltd. Is only major client of our company,

Somany almost sells 60% of total production of Matrix. Matrix daily send its inventory report to somany, then

Somany gives an order based on its inventory report.o Assemble to order:

Matrix produces tiles from 60 tons of materials, while itsspray dryer capacity is almost double than it, so sometimeMatrix sell raw materials to other ceramic company on the

base of order.

SELLING STRATEGY Company use push strategy, it produce popular varieties of tiles,

Company has not been focus on some innovative design of tiles.

PARETO CHART


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0

12

3

4

5

6

7

8

9

10

Glaze dust Carbon dust Dimention Size

Defects

0

20

40

60

80

100

120

Glaze dust Carbon

dust

Dimention Size

Defects

By use of Pareto chart, we can say that if company removes Glazedust & Carbon dust error, Company is able to improve quality by75%.

But practically, Company can minimize its defects, it is impossible toremove Glaze & Carbon defects completely.

CAUSE AND EFFECT

COMPETATIVE PRIORITIES & CAPABILITIES

Sr.No.

Capability

Priorities

1 Cost Low cost

leadership


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2 Quality Consistentquality

3 Time On timedelivery

4 Flexibility

Variety

Company focus on low cost leadership, by reducing unnecessaryexpense of company.

Company try to maintain its quality, so company replace its allmoving parts of plane after every 3 years. (Preventive cost)

Morvi has not linked with rail track, so most of transportationactivities have been done by Road, still company try to deliver goodsat promised date.

Company has around 10 types of different varieties and 45 types of

designs for floor tiles.

BOTTELENECK Here bottlenecks are Press, Dryer line & Killen because it constrains

production. (Spray dryer & Boll mill have more capacity) Company has to order Press, Dryer & Killen from only one Supplier

Company because it is interrelated with each other. Company cannot increase production by simply increasing capacity

of any one from them; company must have to change all theseequipments.

INVENTORY MANAGEMENT(Figures are in ton)

Sr.No.

Rawmaterial

Dailyconsumption

Safetystock

Lotsize

Cycleinventory

1 Morvi clay 87 20 20 102 Kachchh

clay

57 160 20 10

3 Bikanerclay

12 120 20 10

4 Chemicals 6 10 20 105 Water Up to 170 N A N A N A

Here suppliers of chemical are available in Morvi, so lot size is notfixed.

Safety stock of Morvi clay is very less, because it is very easily

accessible.


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Company has been very conscious to maintain safety stock ofBikaner clay, because lead time of this clay is almost 1 week to 10days.

Here lot size is depend upon capacity of truck, generally is hascapacity of 20 tons.

Cycle inventory is half of lot size.


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