COMPANY PROFILE

Name of Company: Malika Rice Mill’s (pvt) Ltd

Monogram:

Slogan: “Khana hi tu jeena hai”

Status: Private Company

Industry: Food

Mission:

“We serve our clients as a trusted ally, providing them with the loyalty of a
true business partner. We believe in treating our employees as family,
As they are our strength. We are committed to mutually shared
Values and believe in achieving the highest levels of customer
Satisfaction, with extraordinary emphasis on the creation of
Value. The Company is committed to quality management
And continually strives to improve processes for its clients.
In this fashion, we ensure that our quality
Goals and growth plans are met.”

Vision:

“To be recognized and respected as a leader

In quality and value in the industries
We serve, while expanding
Into new markets.”

Value:

“We follow a professional approach in imparting our responsibilities.

Hence, all of our dealings reflect the highest standards of
Accountability, punctuality, customer focus and integrity.
We recognize that it is these values that
Have led to our success.”

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 OPERATIONS AS A COMPETITIVE TOOL
Introduction
Malika rice mill is situated on the Faisalabad road near the Baba Farid
Sugar Mills.

Process of Rice Mill

The process starts from the purchasing of raw material (Paddy), the next
step is to clean it from dust and wooden particles which may effect the
final product. In the next step it is process to the boiler where the paddy is
rotated for three sessions respectively. These rotations may vary with the
kind of paddy. Then the boiled paddy is processed to elevators to dry
through the vaporization.
Then this output will turn into input of next department of threshing. The
input is send through job automation towards threshing machines where it
is processed to gain rice grains. Then they are processed for polishing
before polishing damaged and weak grains are separated in a nested
process. Now the final product is available to send in the market.
For executive class and import quality this is processed further to a
separate polishing plant where the weak and damaged rice is separated
again and polished. Extra food colure is also added according to the
demand of customer and market. This colure gives a good look to rice.
After this they are packed according to the need of customer. Now an
import and executive class product is ready for marketing.

Internal Customers

Department of threshing plant and polishing plant are the internal

customer. Threshing plant takes the input from boilers and polishing plant
from threshing.

External Customers

The persons relate to rice business and publics markets are the external
customer of the business.

Nested Process

Polishing process is the nested process in which at the first time the
damaged rice are separated then weak in the next and processed for
polish.

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 PROCESS MANAGEMENT
“The selection of input operations and methods that transforms input into
output.”

Process of Malika Rice Mill

Pre-cleaning &
Par Boiling

Dryer Paddy
Stock Bin
Separation

Dry Deston
er Size
Polishers
Grade

Coloring & Final Graders

Polishing

Pre-cleaning & Par Boiling

Par boiling and husking is the most common and important process in rice
processing. From our storage units, the paddy is cleaned .Here dust is removed
from the paddy .Then paddy is sent to other machines that grade the width. This is
done to remove immature paddy .These machines are automatic and fine tuned for
fine paddy out put. The mature paddy is then PRE STEAMED. The PRE
STEAMED paddy is the kept steam wet for about 12 - 14 hours in our chambers.
These chambers are basically boilers. We are the only rice mill in Pakistan having
the Imported PAR-BOILING PLANT. This is latest and most efficient plant in
rice industry. Here rice is passed through chambers of steam. After this process
the rice is called SAILA means par boiled.
Once rice is par boiled it is passed through our special dryers. These dryers are
efficient enough as they reduce moisture in the paddy to 8% and even below that
level.

Paddy Separators

The par boiled rice is then kept for a few hours in bags and passed
through different machines. This process includes PADDY CLEANING for

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fine quality paddy PADDY HUSKING for HUSK separation and other
unwanted material from the paddy.

Stock Bin

After the rice is passed through the separators, it then enters in the
process of whitening, The clean and white rice large bags are then poured
in STOCK BIN. Here rice is kept and sent to other processing
requirements. These processing includes passing of rice through various
machines that separate further unwanted material from rice. We use
machines called COMBI CLEANERS known high quality machines.

Size Graders [Thickness Graders]

After the rice is purified to some extent, it is then passed through the SIZE
GRADER machines. also known as thickness graders. Our these
machines are latest and finest in the world that filter UNDER SIZE and
OVER SIZE rice grains from each other. This is done in worlds finest
machines in our mill.

Destoner

As this is natural that harvested rice contains lots of small pebbles and
pieces of stone, There are very efficient and modern machines in our rice
mill known as DESTONERS, which separate stones from rice making it
more purified from any kind and size of stone.

Dry Polishers

Once the rice is cleaned from stones it is whitened and polished in special
machines. We have state of the art polishing machines called NF-14 from
CHINA. The rice is passed through DRY POLISHING machines and then
MIST POLISHERS. After then its is passed through special machine called
SILKY POLISHER that further refines individual grain of rice. Once it is
done through fine quality rice is again passed through the graders. These
machines again separate the different size of rice grains and filter them. In
our rice mill we have special machines that further filter the rice after this
called THICKNESS GRADER for over size rice , LENGTH GRADER and
once again COMBI CLEANER is used. This removes any dust if remained
on the rice grains.

Color Master

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This fine quality rice is then passed through special machine called
COLOR SEPARATOR or COLOR MASTER. Here dark colored rice grains
are removed from the rice making it clean, pure and polished white.

Final Graders

Once the rice is passed through color master , it is then passed through a
wide range of machines that further grade the length. This is all done
through automatic high quality machines in our mill.

Major Process Decisions

1- Process choice

“How operation’s strategy is implemented?”

 Project Process
 Job Process
 Batch Process
 Line Process
 Continuous Process

Malika Rice Factory adopting continuous process because they are

producing the product which is falls in the common needs of the
consumer. Rice has no artificial feature so; there is no need of changing
process choice. This process is capital intensive and operated round the
clock so, it maximizes their utilization and avoid shut downs.

2- Vertical Integration

“Which services and products are created in-house?”

 Backward integration

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 Forward integration
Few years ago, they decided to expand their market. To meet this goal
they started to export rice. They signed contract with Kohe-e-Noor rice
factory to polish the final product because they don’t have their own
polishing plant. This contract increased their cost of production.
They decided to do forward integration and have their own polishing plant
to minimize their cost. In 2007 they built their own polishing plant and
reduce production and transportation cost. Not only they polish their own
product but also they polish rice of other factories and generating
revenues.

3- Customer Involvement
“To what extent the company involves their customers?”
Malika Rice involves customers (dealers) in process of polishing of the
rice. And polish it according to the need of their customers.

 Self Service
 Product Selection
 Time and Location

a) Product Selection
They colored the rice according to the need of the customer. For example
if customer demands dark color then they adds dark color if he demands
light color then they add light color to the rice.

b) Time and Location

They deliver the product where customer demands and when customer
demands.

4- Resource Flexibility

Malika Rice’s workforce is capable of doing many tasks. If one employee

is on leave or if any other problem then other employee can perform his
duties.

5- Capital Intensity
“How firm depends on machinery and automated process?”

 Fixed automation
 Flexible automation

a) Fixed automation:
They use fixed automation from pre-cleaner to the process of
development of sela rice from paddy.

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b) Flexible automation:

In polishing plant they use flexible automation because they offered

customize product, so some flexibility is needed in machinery.

Job Design Consideration

In job design consideration manager decides that how much should the
job be specialized or enlarged.

Job Specializatio
A job specialization involves a narrow range of tasks, high degree of
repetition, great efficiency and high quality.
Malika Rice is not currently using job specialization because they are
using alternative to job specialization.

Alternative to specialization

Malika Rice is using following alternatives to reduce job specialization:

 Job Enlargement
 Job Rotation
 Jon Enrichment

a) Job Enlargement

Here employees in the same department and at the same level have
capability to operate various machines.

b) Job Rotation

On weekly basis they rotate their employees from one job to another.
e.g. Boiler operator appoints next week as dryer operator.

c) Job Enrichment

If Supervisor of any department on leave then the senior employee of that

department starts his job as supervisor.

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 MANAGING THE PROJECT PROCESSES
An interrelated set of activities that has definite starting and ending point
and results a unique outcome for a specific allocation of resources.

Key activities are associated with managing a

project:
1- Defining and organizing the project

1.1 Select the project team and manager

In rice processing control is centralized so the team completely depends

upon the manager. It is the responsibility of the manager to define the
performance, goals and evaluate the performance against previously
settled performance standards.

1.2 Defining the scope and objective

It is company’s policy to clearly define the scope and objectives of the

project to avoid any conflict among employees in the future about
completion of project.

1.3 Efficiency and organizational structure

The efficiency of the project team is often influenced by the firm’s

organizational structure.
Malika Rice factory follow the traditional structure whereby the project is
housed in specific functional area. Under this structure the project
manager has minimal control over the timing of the project but the
resource duplication is minimized.

2- Planning the Project

2.1 Defining the Work Breakdown Structure

List of activities:

1. Pre-cleaning & Par Boiling

2. Dryer
3. Paddy Separation (Husking)
4. Stock Bin
5. Size Graders (Thickness Graders)
6. Destoner
7. Dry Polishers
8. Coloring & Polishing
9. Final Graders

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 2.1 Diagramming the Network

Activity Schedule:
Activity Time Predecessor
A 10 Hours -
B 2 Hours A
C 2 Hours B
D 2 Hours C
E 1 Hour D
F 1 Hour E
G 2 Hours F
H 3 Hours G
I 1 Hour H

Network Diagram

0 A 10 B 12 C 14 D
10 12 14 16

12 2

20 H 18 G 17 F 16 E
23 20 18 17

23 I
24

10 2 2 2 1 1 2 3 1
Critical Path: A – B – C – D – E - F- G – H - I = 24 HOURS

Slack Time = 24 hours

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 TOTAL QUALITY MANAGEMENT
“It focuses on three things customer satisfaction, employee involvement
and continuous improvement in quality”.

Malika Rice have laid strong emphasis on modern and state-of-the art
operation. As the latest technology used in Japan and Europe we have
installed the best machines ,like SATAKE , Japan. Among the rice milling
industry there is an increasing upgrading with high-tech processing
equipment and control systems. We use computerized methods where
applicable. In every aspect we believe that with out the usage of advanced
technology no one can meet the strict criteria of quality production that is
why we give quality, the most priority order. Our BASMATTI RICE is
meeting the highest standards of quality.

Customer Driven Definitions of Quality And

Company’s Response
In this section we see how customer perceives the quality of the product
and how company response to the expectations of the customer’s
responses.

a) Conformance to Specification

Customer expects the rice they buy meet advertised level of performance.
Company’s Response: On the packaging of rice it is mentioned that after
cooking it will be crispy and actually the rice of Malika Rice is crispy.

b) Value

Customer defines quality in sense of value as “How well the product

serves its intended purpose at a price customers are willing to pay”.
Company’s Response: They provide neat and clean Basmati rice at
reasonable price.

c) Fitness for Use

Some customers define quality in sense of fitness for use like, “How well
the product performs its intended purpose”.
Company’s Response: The Company is not using the chemicals that put
bad effect on the health of final users.

d) Psychological Impressions

People often evaluate the quality of the product on the basis of

Psychological Impressions: look, image and atmosphere etc.

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Company’s Response: They are using attractive packaging and with help
of polishing plant they create shine in the rice to attract customers.

Cost of Poor Quality

This can be seen as difference between what is actually cost provides to
provide a good or service and what it would cost if there was no poor
quality or failure.

Prevention Cost
In the beginning Company uses medium size silver heaters in
dryers of paddy which were not capable to completely dry
paddy, Company’s managers think that this may effect the
quality, before this any bad effect on quality had occur they
replace them with large size silver hetaeras.

Appraisal Costs

Company uses different types of inspection instruments to check that

broken out rice and less healthy is properly separated from the healthy
rice. The cost of these tests is called appraisal cost.

Internal Failure Cost

If due to any error in machine the customer receives the rice which also
includes broken rice then the additional cost to reprocess and separate
broken and healthy rice is the company’s internal failure cost.

Employee Involvement
The control of the Malika Rice factory is totally centralized because they
produce the product which is common in market and it doesn’t need
artificial features. So there is no need of employee involvement.

Continuous Improvement
“The philosophy of continually seeking ways to improve operations based
on japans concept called kazien”.
Malika Rice also focus on continuous improvement.

Getting started with continuous Improvement

1) Training of Employees:

 On job
 Off job

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They are using on job training method because it has less cost as
compare to off job training. Another reason for using on job training is that
they are not using sensitive and complex machinery.

2) Problem Solving Tools:

Every machine operator has its own tool kit. And whenever any operating
problem occurs they solve it on the spot.

3) Operator Ship in the Process:

Management is very responsible and every time they make sure that the
machine operator are operating machines, to maintain good quality.

Improving Quality Through TQM

Purchase Consideration

1) No of Suppliers:

To check and balance the quality of raw material they keep only small
number of suppliers.
They don’t depend on same suppliers, instead of it they change them time
to time.

2) Focus on Quality:

They always focus on the quality of the suppliers rather than quantity.

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 CAPACITY
Mill’s Capacity
The mill’s total production is two lace bags (10,00,000 Kg) per annum. But
the industry has the latest polishing plant attracting the outsiders to polish
their product for marketing.
This capacity is between (7,50,000 - 10,00,000Kgs) annually.

Short Term Capacity Plans

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 Regarding to short term capacity plans they are going to enhance the
workforce as well as the budget to overcome the market.

Long Term Capacity Plans

The business is going to locate a new polishing plant to fulfill the industry
demand.

Utilization

The utilization rate of Malika rice mill is:

Utilization Rate = (Avg. output / max. capacity) * 100

Utilization (Peak)

Utilization at peak capacity is:

Utilization Rate(peak) = (Avg. output / max. capacity) * 100
= (875000/1000000)*100
= 87.5%
Utilization (Effective)

Utilization at effective rate is:

Utilization Rate (Effective) = (Avg. output / effective capacity)*100
= (875000/750000)*100
=116.7%
Process in Bottleneck
The transformation of raw material to threshing machines is purely
dependent upon the man power. The impose bottleneck upon the current
and next operations.

Solution Of Bottelneck
What is the problem:

The problem is the not proper use of job automation. The preceding and
next operations are fully automated.

Exploitation

Prepare a schedule which maximize the through put

Subordinate All Other Decisions

Describe all other decisions as sub ordinate to this process

Elevate The Bottle Neck:

If there is still error then revise step 1 & 3.

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Solution

Department should be job atomized. Because the previous and the next
departments are effected by this.

Economy of Scale
As the output increase the cost will decrease.

Spreading Fixed Cost

As the fixed cost spread over more units this will decrease the input cost.
As they purchase in bulk they gain discount.

Capacity Strategy

They use the process layout because they have a continuous process so
they follow a lineare path as defined.They also used fixed position layout
in all there departments specially in polishing plant
.

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 LAYOUT
Where all plants should be located which give the maximum facility to the
origin.
Layout of Malika rice Mill
They use the process layout because they have a continuous
process so they follow a linear path as defined. They also used

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fixed position layout in all there departments specially in
polishing plant

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 INVENTORY MANAGEMENT
The type of inventory management system employed is determined by the
nature of the demand for the goods and services on the organization.
Demand can be classified into two categories. Dependent and
independent

Dependent Demand

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A dependent demand item has a demand which is relatively predictable
because it is dependent on other factors.
It is the company’s regular inventory demand which depend upon factors
like capacity of the machinery and labor force.

Independent Demand
Independent demand is when the demand is not directly related to the
demand for any other inventory item. Usually this demand comes from the
customers outside the company so it is not predictable as dependent
demand.
Company with help of forecasting maintains a safety stock in shape of
final rice and extra raw material in shape of paddy.

High Inventory Pressures That the Company Face

1-Customer Service

They are producing product which is commonly use a through out the year
in Pakistan and exported to foreign country. And much time they face
uncertain demand from local and foreign side. To predict itself from
stockout situation the company can maintain a safety stock in shape of
finished goods.

2-Ordering Cost

In season of harvesting of paddy they purchase it for whole the year and
automatically ordering cost of company reduces.

3-Labor and Equipment Utilization

By purchasing paddy for the whole year they effectively use their
resources of labor and equipment and also get the economy of the scale.

4-Payment to Suppliers

Company also get discount in total payment to suppliers by purchasing

inventory in bulk.

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Today's business has become more complex than before. There is need to
see and manage any business with new scientific methodology. So this is
good technique to teach students by practical research on report. This will
provide business students more practical nature. We have learnt much
more from this report. We think this have created different operational
management abilities as well as a sense of experience, confidence and
self reliance in us.
At last we offer special thanks to our kind teacher, who enable us to
complete this work successfully.

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