Production and operations report on sugar factory bardoli

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4.1 General information:
In Gujarat state most of farmers are growing sugarcane. Farmer are gets maximum
income by growing sugarcane and sale to sugar factory. Today there are total 19 sugar
factories in Gujarat state. Our all which 14 sugar factories were already commissioned.
Shree Khedut Sahakari Khand Udyog Mandli Ltd. Bardoli is located just opposite to the
Bardoli railway station, Dist. Surat. It is the first sugar factory started in co-operative
sector in Gujarat in year 1955 dated 10-01-1955. Bardoli sugar factory was started
commercial production in 1957 under the board of director by the next of Gujarat state.
Shree Khedut Sahakari Udyog Mandli Ltd. Bardoli main product is sugar and there are
number of plants;
 Sugar plant
 Boiling plant
 Society welfare plans
Shree Khedut Sahakari Khand Udyog Mandli Ltd. Bardoli at the time establishment
factory started with 850 metrics tones per day. Crushing is 10,000 tons per day. Average
annual turnover of the factory is 500 crores.
In the year of 2005 factory completed its crushing under this 50th
year. Factory not only
achieves progress in sugar plant but also it by product like;
 Molasses
 Bagasse
 Bio-compost
Factory also takes step to develop farmers and their growing method of sugarcane.
Factory gives different type of fertilizers to the farmer at subsidize rates at the time of
establishment factory started with 88 Lakh by the help of the government and bankers but
at present the cost of Bardoli sugar factory is Rs.86,52,45,329/-.

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4.2 History :
SHREE KHEDUT SAHAKARI KHAND UDYOG MANDLI LTD.
At-Post: Baben-Bardoli,
Ta: Bardoli,
Dist: Surat.
Ph: (02622)220170, 220172
SHREE KHEDUT SAHAKARI KHAND UDYOG MANDLI LTD. Located at Baben-
Bardoli is the first sugar factory started in co-operative sector in Gujarat in the year 1955.
The society inauguration ceremony was performed by honor Shree Morarjibhai Desai on
04/03/1955. The society is biggest co-operative in Asia. The society has started with 850
tones cane per day crushing today. This factory is crushing 10,000 tones cane per day.

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The government of India issued licensed no. G/265 Dated 9-2-55 for establishing a sugar
factory having is crushing capacity of 850 tons per day crushing.
The oldest sugar factory has become a source of inspiration, guidance and help to all
other sugar factories that came up in Gujarat state.
Today there are total 19 sugar factories in Gujarat state, out of which 17 sugar factories
were already commissioned. All these factories in are in co-operative sector.
 Sugar factory brief details:
This society was registered in February ,1955 order for the sugar machinery was
placed with M/s. Backau wolf of west Germany in August 1955 for a cost of 47.5
Lakh. The fist crushing season was started on 21st April 1957 of 1956-57 seasons.
The proposed capital outlay at the starting was under;
Members Share Capital Rs.20.00 Lakh
Government Share Capital Rs.10.00 Lakh
I.F.C.I. LOAN Rs.47.50 Lakh
Medium Term Loan Rs.10.50 Lakh
TOTAL Rs.88.00 Lakh
IFCI loan was fully repaid with in short period of seven year’s i.e.by 1963; the
government share capital was fully repaid in the year 1969. All member of the society are
farmers basically engaged in sugarcane cultivation. Our total membership is 5642.
Factory has successfully completed in 50 years crushing in the year 2005. The OC cession
was celebrated in the presence of distinguished guest personalities of sugar industries.
The sugar factory was commissioned in February, 1955. The plant was very old and big.
Its initial crushing capacity was 850 per day.
It was partly steam driven and partly electric driven. Hence, the board and executives of
the society went on making additions and alternatives in plant continuously every year.
The factory has its own most modern and well equipped research station and also a
research farm of 50 acres is attached to the research station, soil, plant and manure
analysis are being carried out in the laboratory. Different types of fertilizers and
insecticides are stocked and supplied to the farmers at subsidized rates.
The factory have started different project like tissue culture project, wormy compost
project, bio-compost project, bio-pesticide laboratory etc. to get more yield and sugar

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recovery and to minimize the pest problem. The factory is always been interested to
develop new promising sugarcane varieties. At present, there are about 80 sugarcane
varieties under trial since last three years. These new varieties were planted and
multiplied in the different field and we are observing the sugarcane yield as well as
recovery by taking actual mill test in our factory.
The by-product viz. molasses and Bagasse is being sold to distilleries, cattle feed,
factories as well as paper plants respectively. The factory is taking almost care for its
employees, housing facility, canteen facility, conveyance to school going children etc. are
provide. The factory is generously contribution handsome amounts to educational
institution, social welfare institution, and medical institution etc. of this area for its
development.
Due to the development of this sugar factory in this region, the socioeconomic pattern of
the rural area has dramatically improved. Approach roads have improved the
communication with her interior area and the life in the Bardoli and surrounding rural
area is completely changed, we are proud to state that, Bardoli sugar factory has taken
keep interest promoting Sardar Vallabhbhai Patel education society which has started
diploma course in pharmacy and chemical engineering during the year 1997-98 to
facilitate the students of surrounding rural areas.
The sugar factory is taken after paddy in kharif a green manufacturing crop in kharif.
Even this very big plant of 850 TCD. The society did not get sufficient sugarcane in the
initial stage when the society was registered in 1955. It was expected that Ukai dam will
be completed by 1956-57 and sufficient irrigation facility will be available for sugarcane
cultivation in this area. About 40% under well irrigation. Long ferrous irrigation system is
followed in all 14 irrigation are given in case of plant cane and about 12 for Raton.
The society started erecting Kachh dam on Tapi at Surat to prevent sea water coming to
Surat water works. Thus, there was saving of Kakarapar water which was diverted by
irrigation department in this area for sugarcane cultivation.
The society acquired land on lease from the farmers at various places and organized
sugarcane growers and thus increases the cane supply. Sugarcane supply from out of area
for operation was also encouraged. The society had to face cane supply difficulties till the
completion of Ukai project.
Necessary finance for sugar factory project was to be raised by issuing shares to the
members and to state government and rest of India. They advised by obtaining loans from
industrial finance corporation of India.

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They advised the society to expand the plant phase wise expansions carried out are as
under:
Year Expansion detail
1956-57 850 TCD
1963-64 1200 TCD
1969-70 1500 TCD
1971-72 3000 TCD
1975-76 5000 TCD
1979-80 7000 TCD
1992-93 10000 TCD
The society is headed by a full time managing director who himself is sugar technology
and having wide experience on manufacturing side and also on the administrative side.
He is assisted by well experienced key personal in all areas of management.
The society is headed by a full time managing director who himself is a M.B.A. and
having wide experienced key personal in all areas of management.

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Products & its Features :
Number of product:
 Granulated Sugar:
 Superfine, Ultrafine or Bar Sugar:
 Coarse Sugar:

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 Baker’s Special Sugar:
 Confectioners (Powdered) Sugar:
Sales Volume:
The firm sell 90% sugar sell freely in open market & 10% levy sugar sell as per the
government quota.
Product line:
 Main Product:
 Sugar:
Sugar is a commercial name of sucrose. Sugar is a class of edible crystalline
substance, mainly sucrose, lactose and fructose. Sugar has basic food carbohydrate
primarily come from sugarcane and from sugar beet, but also appears in fruit, honey,

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sorghum, sugar maple (in maple syrup) and in many other sources. It forms main
ingredient much candy.
 By Product:
 Molasses:
Molasses is a residue from sugar refining. Molasses contains 28% to 30% sucrose,
16% to 20% reducing sugar and substantial quality of besides valuable nitrogenous
substance aconite acid, potassium salts and phosphates. When cane or beet sugar is
produced it leaves behind a thick, treacle brown gluey liquid that has many uses. It is
made from sugar, water, mineral salts and nitrogenous substances. Molasses is sold as
black treacle when it is obtained from sugarcane and can be used in many types of
baking and cooking.

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 Press Mud:
In the factory for every 100 tons of sugarcane crushed about 3 tons of press mud cake
is left behind as by-product. It has been estimated that 2.7 million tons of press mud is
produced every year in our country. Press mud contains trace quantity of
micronutrients and prevents soil erosion, crusting and cracking, adjusts soil PH,
improves drainage and promotes normal bacterial and microbial growth in the soil. It
is used as both soils reclaiming as well as soil conditioner. Press mud is the most
economic soil reclaiming for red loamy soil. It should be broadcasted followed by
plugging and irrigating.
 Bagasse:
Bagasse is the librous residue remaining after sugarcane or sorghum stalks are
crushed to extract their and is currently used as a renewable resources in manufacture
of pulp and paper products and building materials. It is used as a fuel in the sugar
factories, where power steam is important cost item in manufacturing of sugar.
Bagasse is rich in cellulose material and used in pulp and paper board, corrugated
board, etc.
Bagasse contains about 18% lignin, 15% water soluble substances, 45% cellulose,
28% pentose and other semi cellulose, spring character. Bagasse is an important raw
material for manufacturing of insulation building broad product.

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Raw Material:
Sugarcane is only raw material for the factory.

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Type of manufacturing systems
Some of the most important types of production are:
(i) Job Production
(ii) Batch production and
(iii) Mass or flow production
The sugar factory is using mass production system, by working semi
annually
(i) Job Production:
Under this method peculiar, special or non-standardized products are
produced in accordance with the orders received from the customers. As
each product is non- standardized varying in size and nature, it requires
separate job for production. The machines and equipment’s are adjusted
in such a manner so as to suit the requirements of a particular job.
(ii) Batch production:
Batch production pertains to repetitive production. It refers to the
production of goods, the quantity of which is known in advance. It is that
form of production where identical products are produced in batches on
the basis of demand of customers’ or of expected demand for products.
This method is generally similar to job production except the quantity of
production. Instead of making one single product as in case of job
production, a batch or group of products are produced at one time. It
should be remembered here that one batch of products may not resemble
with the next batch.
Under batch system of production the work is divided into operations and
one operation is done at a time. After completing the work on one
operation it is passed on to the second operation and so on till the

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product is completed. Batch production can be explained with the help of
an illustration. An enterprise wants to manufacture 20 electric motors.
The work will be divided into different operations. The first operation on
all the motors will be completed in the first batch and then it will pass on
to the next operation. The second group of operators will complete the
second operation before the next and so on. Under job production the
same operators will manufacture full machine and not one operation
only.
Batch production can fetch the benefits of repetitive production to a large
extent, if the batch is of a sufficient quantity. Thus batch production may
be defined as the manufacture of a product in small or large batches or
lots by series of operations, each operation being carried on the whole
batch before any subsequent operation is operated. This method is
generally adopted in case of biscuit and confectionery and motor
manufacturing, medicines, tinned food and hardware’s like nuts and
bolts etc.
(iii) Mass or flow production:
This method involves a continuous production of standardized products
on a large scale. Under this method, production remains continuous in
anticipation of future demand. Standardization is the basis of mass
production. Standardized products are produced under this method by
using standardized materials and equipment. There is a continuous or
uninterrupted flow of production obtained by arranging the machines in
a proper sequence of operations. Process layout is best suited method for
mass production units.
Flow production is the manufacture of a product by a series of
operations, each article going on to a succeeding operation as soon as
possible. The manufacturing process is broken into separate operations.

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The product completed at one operation is automatically passed on to the
next till its completion. There is no time gap between the work done at
one process and the starting at the next. The flow of production is
continuous and progressive.
Characteristics:
The mass or flow production possesses the following characteristics.
1. The units flow from one operation point to another throughout the
whole process.
2. There will be one type of machine for each process.
3. The products, tools, materials and methods are standardised.
4. Production is done in anticipation of demand.
5. Production volume is usually high.
6. Machine set ups remain unchanged for a considerable long period.
7. Any fault in flow of production is immediately corrected otherwise it
will stop the whole production process.
Suitability of flow/mass production:
1. There must be continuity in demand for the product.
2. The products, materials and equipments must be standardised
because the flow of line is inflexible.
3. The operations should be well defined.
4. It should be possible to maintain certain quality standards.
5. It should be possible to find time taken at each operation so that flow
of work is standardised.

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6. The process of stages of production should be continuous.
Advantages of mass production:
A properly planned flow production method, results in the following
advantages:
1. The product is standardised and any deviation in quality etc. is
detected at the spot.
2. There will be accuracy in product design and quality.
3. It will help in reducing direct labour cost.
4. There will be no need of work-in-progress because products will
automatically pass on from operation to operation.
5. Since flow of work is simplified there will be lesser need for control.
6. A weakness in any operation comes to the notice immediately.
7. There may not be any need of keeping work-in-progress, hence storage
cost is reduced.

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Plant Layout
In manufacturing, facility layout consists of configuring the plant site
with lines, buildings, major facilities, work areas, aisles, and other
pertinent features such as department boundaries. While facility layout
for services may be similar to that for manufacturing, it also may be
somewhat different—as is the case with offices, retailers, and
warehouses. Because of its relative permanence, facility layout probably
is one of the most crucial elements affecting efficiency. An efficient layout
can reduce unnecessary material handling, help to keep costs low, and
maintain product flow through the facility.
The production process normally determines the type of plant
layout to be applied to the facility:
Fixed position plant layout
Product oriented plant layout
Process oriented plant layout (Functional Layout).
Combined Layout
Here firm using product and process layout.
1. Product layout:
In the product layout the machine on the facilities are arranged in
sequences of operation required by a particular product thus, each
product contain separate line & equipments depending on operation
sequencing in Bardoli sugar factory there is only one product can be
producing by them. E.g. of the sugar. So, for producing single product
sequence is requiring sequence of the machine is require. So, the process
of the production is very fast & product is produce as early as soon. We
can understand that each individual product can require products layout
so produce product early as important.

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Advantages
 A high rate of output
 Low unit cost due to high volume
 Low material-handling cost per unit
 A high utilization of labor and equipment
 The establishment of routing and scheduling in the initial design of
the system
 Fairly routine accounting, purchasing, and inventory control
 Cost of material handling can be reduced using conveyors.
Disadvantages
 Morale problems and to repetitive stress injuries.
 Lack of maintaining equipment or quality of output.
 Iinflexible for output or design
 Highly susceptible to shutdowns
 A high utilization of labor and equipment
 Preventive maintenance, the capacity for quick repairs, and spare-
parts inventories are necessary expenses
 Incentive plans tied to individual output are impractical
2. Process layout:
Plant layout is which machines and equipment integral a workflow are
grouped together by function. In this layout all machines or facilities
performing similar type of operation or function are grouped together
in the same area or section or department all machines casting are
made at one place foundry in sugar factory is different type of
machines performing similar type of operations & they are grouped
together.

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Aadvantages
 Not vulnerable to equipment failures
 General-purpose equipment is less costly and is easier and less
costly to maintain
• More effective supervision can be achieved
• Division of labour or specialized work can be provided.
• Disruption of production is less. §Scope for expansion is high
Disadvantages
 In-process inventory costs can be high
 Routing and scheduling pose continual challenges
 Equipment utilization rates are low
 Material handling is slow and inefficient, and more costly per unit
 Special attention necessary for each product or customer and low
volumes result in higher unit costs
 Accounting, inventory control, and purchasing are much more
involved
 May not be suitable when number of unit operations should be
performed in a sequence.

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INVENTORY MANAGEMENT TECHNIQUES
In modern competitive one of the burning problem of every business and
industries that of cost control and cost reduction. An all pervasive effort
for cost control and cost reduction is of paramount, importance for
survival and growth of every industrial enterprises. This is why inventory
management as a scientific device for controlling inventory cost and
eliminating wastage, is now regarded as an integral part of industrial
management. Inventory management does not involve any human factor,
as it concerns itself not with men but with inventory.
Meaning of Inventory:
The dictionary meaning of inventory is stock of goods, of a list of goods;
various authors understand the word inventory differently. In
accounting language it may mean stock of initial goods only. In a
manufacturing concern, it may include raw materials; work in process
and stores etc. To understand the exact meaning of the word ‘inventory’
we May study it from the usage side or from the side point of entry in the
operations. Inventory includes the following things.
1. RAW MATERIALS
Raw material form a major input into the organization. They are required
to carry out production activities uninterruptedly. The liquidity of raw
materials required will be determined by the rate of consumption and the
time required for replenishing the supplies. The factors like the
availability of our materials and the government regulations, etc. to affect
the stock of raw materials.
2. WORK IN PROGRESS
The work in progress is that stage of stocks, which are in between the
materials and initial goods. The raw materials enter the process of

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manufacture but them yet party in a final shape of initial goods. The
quantum of work in progress depends upon the time taken in the
manufacturing process. The greater the time taken in a manufacturing
the more will be the amount of work in progress.
3. CONSUMABLES:
These are the materials, which are needed to smoothen the process of
production. These materials were not directly enter production but they
act as catalysts etc.. Consumables may be classified according to their
consumption and criticality. Generally, consumables stores to not create
any supply problem and form a small part of production costs. They can
instances where these materials may account for much value than the
materials. The fuel oil may form a substantial part of cost.
4. FINISHED GOODS
There are the goods, which are ready for the consumers. The stock of
initial goods provides a buffer between production and market. The
purpose of maintaining inventories to ensure proper supply of goods to
customers. In some concerns the production is undertaken on order
basis, in these concerns they will not be need for finished goods the need
for finished goods inventory will be more when production is undertaken
in general without waiting for specific orders.
5. SPARES
Spares also form of part of inventory. The consumption pattern from
materials, consumables, finished goods are different from that of spares.
The stocking policies of spares for different from industry to industry.
Some industries like transport will require more space than the other
concerns. The costly spare parts like engines, maintenance spares etc.
are not discarded after use, rather they are kept in ready position for
further use. All decisions about spares are based on the financial cost of
inventory on such and the cast that may arise due to their non-
availability.

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INVENTORY CONTROL TECHNIQUES:
Inventory control techniques are employed by the inventory control.
Organization within the frame work of one of the basic inventory model,
viz., fixed order quantity systems or fixed order period system.
Inventory techniques represent the operations aspects of inventory
management and help to realize the objective of inventory management
and its control.
Several techniques of inventory control are in use and it depends on the
policy of the firm product, the techniques most commonly used are
1. Always Better Control (ABC) Classification
2. High, Medium and Low (HML) Classification
3. Vital, Essential and Desirable (VED) Classification
4. Scare, Difficult and Easy to obtain (SDE)
5. Fast moving, Slow moving, and Non moving (FSN)
6. Economic Order Quantity (EOQ)
7. Max – minimum System
8. Two bin System
9. Material Requirement Planning (MRP)
10. Just In Time (JIT)
11. Distribution Logistics (DL)
a) ABC Analysis: It is one the widely used techniques for the control of
inventory. Objective of ABC control is to vary the expenses associated
with maintaining appropriate control according to the potential savings
associated with the proper level of such a control. A may account for
more than half the total value usage in the inventory. These items
required very careful management and special careful estimates of future
usually class C items which in total account for only a few percent of the
total value of usage very little effort should be devoted to forecast the

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requirement of items. The inter mediate class B items justify a reasonable
but routine effort in forecasting demands and managing inventory.
b) HML Analysis: Since the total annual usage is considered in case of
ABC Analysis, quite a few items which fall in B category although the
unit cost (cost per unit) is quite high. If controls are exercised on the
basis of ABC only, the importance of these items will be much less than A
or B items even though the inventory or transaction of one unit of these
items will mean quite a lot money. Therefore, it is necessary that the unit
cost is also considered in order to find out the importance of items on the
basis of unit cost. Limits of units costs are fixed for high costs items (H),
medium costs items (M) and low cost units (L) and all items are
segregated into H, M and L categories depending on there unit cost.
This analysis is quite useful in deciding the safety stock in relation to the
availability of the material.
c) VED Analysis:
The materials classification on the items is called VED analysis. VED
stands for vita, Essential and Desirable.
Vital items which render the requirement or the whole line operation in
the process totally and immediately inoperative, unsafe and if these items
go out of stock or not readily available, results in losses of whole
production of whole period.
E-Essential items which reduce the equipment’s, performance but not
render it inoperative, results or unsafe, non-availability of items may
result in temporary loss of production or dislocation of production work
replacement can be done without any delayed, without affecting the
equipment’s performance seriously, temporary repairs sometime possible.

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D-Desirable items which are mostly non –functional and don’t effect the
performance of the equipment.
d) FSN Classification :
Materials can be classified on the basis of movement as fast moving slow
moving and non moving –FSN according to their consumption patterns.
FSN analysis is specially useful to combat obsolete items whether spare
parts, raw material or component. Cut –off points of three classes are
usually in items of number of issues in previous few years depends on
the peculiarities of an individual concern.
e) SDE Analysis:
SDE stands for scarce, difficult and easily available items in the local
market. Scarce items are generally in short supply; usually these are raw
material, spare parts and imported items. Difficult items are not available
in local markets, and have to be produced from for off cities or items for
which there are a limited a number of supplies or items for which
quantity suppliers are difficult to get.
The SDE analysis proves to be very useful, in industrial situations where
certain materials are in scare supply, and gives proper guidelines for
deciding inventory policies.
f) XYZ Analysis:
For the effective management of stores, the stock can be split as high
valued, middle value or low valued – XYZ classification. This technique
helps in identifying the items, which are being extensively stocked. ‘X’
items are those whose inventory values are high while ‘Z’ items are those
whose values are low. Understandably ‘Y’ items fall in between these tow

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categories. XYZ classification may be used in the conjunction for the
better results.
g) Minimum-Maximum Techniques :
The Minimum –maximum system is often used in connation with manual
inventory control system.
The minimum quantities is established in the same way as any re-order
point.
The effectiveness of minimum-maximum system is determined by the
method and precision with which the minimum.
h) Two Bin Technique:
One of the oldest system of inventory control is the two bin system, stock
of each item is separated into two bins.
One bin contains stock, just enough to last from the data a new order is
placed until it is received in inventors.
The other bin contains quantities of stock, enough to satisfy probable
demand during the period of replenishment
i) Material Requirement Planning (MRP):
MRP is a new solution to an old problem having stock of materials a
lowers on hand when heeded without carrying excess inventory.
j) E.O.Q. Model :
There are two basic questions relating to inventory management
1. What should be the size of the order

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2. At what level should the order be placed.
To answer this question the economic order quantity model is helpful.
General E.O.Q. includes 3 types of costs, that are carrying cost, ordering
cost & shortage cost.
Just in Time:
The management of inventory has become very sophisticated in recent
years. In certain industry the production process it self lends to just in
time (J I T) inventory control. As the name implies, the idea is that the
inventories are acquired and inserted in the production at the exact time
they are needed. This requires efficient purchasing, very reliable and an
efficient purchasing, very reliable and an efficient inventory handling
system. One thing that has made this possible is advent of instant
information through sophisticated computer networks. The coordination
of varies suppliers in an efficient manner is known as supply chain
management.
j) Distribution Logistics:
An exciting and profit promising way of using systems logistics in
planning and control is the expansion of inventory control to include
other factors. This system is referred to here as distribution logistics. In
its advance form. It treats the entire logistics of business – ranging from
sales forecasting through purchasing and processing materials and
inventorying to shipping the finished goods as a single system.
The goal is usually to optimize the total cost of the system in operation
while furnishing a desire to level of customer service meeting certain
constrains such as financially limited inventory levels.
ABC Analysis :

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These important items usually designated as class A may account for
more than half the total value usage in the inventory. These items
require very careful management and special careful estimates of future
usually class C items which in total account for only a few percent of the
total value of usage very little effort should be devoted to forecast the
requirement of items. The inter mediate class B items justify a reasonable
but routine effort in forecasting demands and managing inventory.
The ABC approach means of category inventory items into three class, A,
B and C according to potential amount to be controlled.
A - Items, which are the 10%
B - Items, which are the 20%
C - Items, which are the 70%
A.B.C. Analysis
A.B.C. analysis is a selective technique of controlling different items of
inventory. In actual practice, thousands of items are included in business
as inventories. But all these items are not equally important. According
to this technique, only those items of inventory are paid more attention
which are significant for business. According to this technique, all items
are classified into 3 categories A.B. and C. In ‘A’ category those items are
taken which are very precious and their quantity .
ABC ANALYSIS - 1
One of the most important considerations of control is the value of
annual consumption of inventory items in a year.
Only a small number of inventory items consume a very large share of
inventory consumption during the year.
A little larger number of inventory items covers a moderate share of
annual inventory consumption.

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A very large number of items just cover a very small share of annual
inventory consumption.
These facts gave birth to the concept of ABC analysis.
ABC ANALYSIS – 2
It has been observed that in an industrial unit only 10% of items have
70% of the annual inventory consumption.
20% of the items have 20% of annual inventory consumption, and
70% of the items have only 10% of the annual inventory consumption.
Since 70% of the annual consumption of inventory is covered by only
10% of the items in the inventory, these items deserve highest attention
and are classified as ‘A’ items
Similarly 20% of the items covering 20 % of the inventory investment are
B class items.
Balance 70% of the inventory items are termed as C class items.
STEPS IN ABC ANALYSIS:
The steps in computing ABC analysis are:
a .Determine the annual usage in units for each item for the past one-
year.
b. Multiply the annual usage quantity with the average unit price of
each item to calculate the annual usage in for each item.
c. Item with highest volume usage annually is ranked first. Then the
next lower annual usage item is listed till the lowest item is listed in the
last.
Arrange the items in the inventory by cumulative annual usage and by
cumulative percentage. Categorize the items in A, B , and C categories..

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MATERIAL HANDLING EQUIPMENT
In factory following material handling equipment are used:
1) Belt Conveyer:
Motor driven belt usually made of rubberized fabric or metal on a
rigid frame. In Bardoli sugar factory they used belt conveyor for keep
forward to sugarcane on chain conveyor.
2) Chain Conveyer:
A mechanical apparatus consisting of a continuous moving belt that
transports materials or packages from one place to another. It is move
sugar cane to chopper for further machine.
3) Bridge Conveyer:
A short conveyor hung from the boom of mining or lading machine or
haulage system with the other end attached to a receiving bin those
dollies along a frame supported by the room or entry conveyor,
tailpiece. Thus, as the machine boom moves, the bridge conveyor
keeps it in constant connection with the tailpiece.
4) Cranes:
A machine for raising and lowering heavy weights, and, while holding
them suspended, transporting them through a limited lateral
distance.
5) Hoists:
A hoist is a device used for lifting or lowering a load by means of a
drum or lift-wheel around which rope or chain wraps. It may be
manually operated, electrically or pneumatically driven and may use
chain, fiber or wire rope as its lifting medium. In the sugar plant it is
loaded and unloaded heavy weight.

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6) Two Wheeler hand truck:
A two wheel hand or appliance truck of the type used for moving
heavy objects obtains extra lifting leverage through the use of a
separate, pivotally-attached handle which is connected to the pre-
existing conventional handle forming a part of the frame.
7) Tractors- Trucks- Trailers:
Tractors are the basic transportation equipment to use the transfer
sugar canes to the plant area from the farm. Truck is also
transportation equipment but it contains more loaded than tractor
and trailers. This is preliminary equipment to supply of end product
also.
So, in the Bardoli Sugar above all the equipment and machinery used
for handling to raw material as well as sugar bags and molasses.

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QUALITY MANAGEMENT
Quality Policy
The quality of sugar is of paramount importance as it forms the only
parameter for higher realisations in the market. We exercise extensive
quality checks on all the stages of production. We have quality
department with quality labs equipped with advanced tools and trained
personnel that works closely in association with the operation managers,
to attain superior product quality.
We have a fully automatic process. The product is untouched by hand till
it is packed. We are also equipped with Air handling unit (AHU) to avoid
cross contamination. We also have a fully equipped analytical lab for
physio-chemical and microbiological analysis.
Distillery Business
Distillery Business commits itself to become a preferred company by
providing products and services at competitive costs. We work towards
continually enhancing product quality, process performance and skills of
our employees leading to customer delight. The Company has the modern
manufacturing facility, stringent quality specifications, most modern
laboratory, expert sensory panel, highly qualified and skilled technical
team. We are continuously striving to improve the quality of its products
through TQM (Total Quality Management), SPC (Statistical Process
Control) and process re-engineering. All parameters of the product
quality measurement surpass the best customer expectations in each
segment.

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Quality Objectives
 Improve Customer Satisfaction Index and reduce Customer
Complaints and dissatisfaction.
 Improve satisfaction index of channel partners (Dealers,
Distributors, C&F agents, etc.) through support and development.
 Upgrade product quality by process improvement.
 Adhere to specified requirements (internal and external) on quality
and deliveries.
 Improve systems and processes in line with changing customer
needs.
 Meet cost targets.
 Develop employee skills to meet internal and external customer
requirements.
Certificates and National Awards
Awards for the year 2015-16 were given to the sugar factories of Gujarat,
at the Annual General Meeting of the National Federation of Co-operative
Sugar Factories Ltd., New Delhi which was held on 19-09-2016.
(1) First Prize awarded to Sahakari Khand Udyog Mandai Ltd., Gandevi -
396 360, via Bilimora, Dist. Navsari for "Technical Efficiency Award"
(High Recovery Area)
(2) Second Prize awarded to Shree Narmada Khand Udyog Sahakari
Mandli ltd. At Dharikheda Post timbi - 363 140 via Pratapnagar SPO,
Taluka Nandod, Dist. Narmada for "Financial Management Award" (High
Recovery Area)
(3) Award for "Highest Cane Crushing" (Highest Recovery Area) is
awarded to Shree Khedut Sahakari Khand Udyog Mandli ltd., Post Sardar
Baug. Baben-Bardoli·364 602, Dist. Surat

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SAFETY MANAGEMENT
It is expected that mill operators would develop a risk register as outlined
in the How to Manage Work Health and Safety Risks Code of Practice,
assess the risks in their operation, implement controls and monitor and
review the systems implemented to control those risks.
When managing health and safety in sugar mills, operators should
consider the following issues as key components of the management
system:
1. risk registers
2. risk management
3. consultation
4. training
5. emergency procedures.
1 Risk registers
The How to Manage Work Health and Safety Risks Code of Practice
recommends the development of a risk register for all hazards at a
workplace. Hazards can be classified under the following areas:
a) general workplace hazards
b) plant
c) biological substances
d) substances
e) work environment.
A number of hazards typical to the sugar milling process have been
classified into these areas in the following sections and a range of
possible controls suggested for each hazard. There is also a section on
general workplace hazards and possible control measures. As each mill
operates differently it is necessary for each mill to assess the risk of
identified hazards so that the most appropriate controls can be

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implemented within that operation. A number of example risk
assessments have been included in the appendices to provide guidance
on this process.
2 Emergency procedures
A number of emergency situations may arise within sugar milling
operations including but not limited to:
a) fire and or explosion
b) rescue from heights
c) rescue from confined spaces
d) chemical spills
e) natural disasters
f) bomb threats.
Mill operators should ensure that appropriate, adequate and effective
emergency response procedures are planned, distributed, understood
and rehearsed so that in the event of an accident or emergency, people
are prepared.
In some instances hazards which create emergency situations such as
natural disasters cannot be controlled. However, the hazards associated
with these events can be managed. Sugar mill operators should
implement processes which enable:
(a) the notification of incidents to emergency services
(b) identification of the location of the incident site by emergency and
other services and the provision of clear instructions and information
(c) the provision of basic first aid
(d) a first response system for dealing with emergency situations
(e) a method of instigating and controlling a site evacuation.

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These procedures should be implemented in a manner which allows the
emergency system to successfully operate regardless of the status of the
factory (e.g. when the mill is operational, non-operational, on continuous
shift roster or on a five day roster). Consideration should also be given to
other operational factors such as the general availability of personnel
because of sick leave and annual leave.
3. Workplace inspections
Regular workplace inspections can play a significant prevention role by
identifying health and safety issues before they result in injury or damage
at the workplace. Inspection programs should be undertaken by all mill
personnel at various times. Workplace inspections are a key element in
monitoring the health and safety standards of contractor activities
Copies of inspection reports should be available for review and discussed
at workplace health and safety committees meetings. A documented
process should be used to control hazards identified during workplace
inspections which is based on the risk management process. Inspections
should be conducted in conjunction with a representative of the area
which is being inspected to enable discussion and resolution of minor
issues as they are identified.
The frequency of inspections will depend on the nature and
circumstances of the area being inspected. Issues such as the level of
risk and extent of control that the mill has over the workplace (e.g.
remote locations) will influence the frequency of inspections. The mill
operator should establish an inspection schedule allocating responsibility
to appropriate persons for completion of the inspections.

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PRODUCTION PROCESS (WITH FLOW CHART)
Process of production can be described as below ;
Steps;
1) Weighted sugarcane is brought To be grinded
2) Mill House is that place where Sugarcane is brought to take out
juice
3) House is the place where Boiler Steam is produced from water
4) Boiling House This is the place where sugarcane juice is Boiled and
syrup is made out from it
5) Boiling Hose where from centrifugal machine syrup Is prepared
then from Massecuite sugar is made out of the firm
6) Once the sugar is ready it is purified In different sieves and
segregated
7) The Sugar which is purified then it is Packed in different sacks
8) Packed sacks are then sent to the Go dawn by crane
9) Sugar Go dawn is the place where Sugar sacks are store

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PROCESS FLOW CHART
Cane Yard
Unloading
Feeder Table
Cane Kicker
Leveller
Fibrizer
Mills
Juice
Juice weighing scale
Boiler No 1 Boiler No2
Bagasse
Meceration water/Imbibition
Disposal filter cake
Weighed Juice
J H PRI Heaters
Steam power
Turbine
Clarrifier or
Settler
Juice sulphiter
JH sec Heaters
Oliver
filters
Evaporator
SO2 Gas
Syrup Tanks
Vaccum pan
A Boiling
A Centrifugal
White sugar
Grading
Weighing &
packing
A mols
B m/c
Crystllizer
B Centrifugal
B Sugar B Mols
C m/c
C- Sugar Final Mols
SO2 Gas Lime
Crystallizer
PRD Station
B and C sugar melted & used to Boil A m/c
A m/c Crystilliser
Godown
Cane Carrier
syrup
Exhaust steam for process
Clear Juice
Super heated wash water/Steam
Muddy Juice
Distributed to
various
stations
Excess Bagasse
To Tanks
Process Flow Chart
Syrup Sulphitor