1. Presentation on
PRODUCTION &
OPERATIONS
MANAGEMENT
Presented By:
Group A1

3. • The fertilizer in India consists of three major
players: The Government owned Public Sector
undertakings, Cooperative Societies like IFFCO,
KRIBHCO and units from Private sector.
• The fertilizer industry has organized itself through
Fertilizer Association India (FAI) to coordinate with
the Government of India to achieve the macro-
economic objectives related to agricultural sector
and to provide other services.

4. IFFCO is the largest producer of fertilisers in
the country.
A total of 24.49 lakh MT imported urea and
14.71 lakh MT imported DAP were handled by
marketing division from various ports directly.
Fertilisers marketed through 39877
cooperative societies and 158 farmers service
centers.
Only fertiliser institution in the country to
produce 85.83 lakh MT of fertilisers and
125.88 lakh MT of sales during 2010-11. This
is highest sales in India as well as the whole
world by a single fertiliser major.

5. Five units of IFFCO they are:-
 Kalol
 Kandla
 Phulpur
 Aonla
 Paradeep

6. Mission of IFFCO is to establish Indian
Farmers to prosper through supply of
reliable, timely, high quality agricultural
inputs and services in an environmentally
sustainable manner and undertake other
cavities to improve their welfare.

7. Attaining an annual turnover of Rs.15000 crore
by 2010 which increased to Rs.21195 crore by
2011.
Backward integration to meet feedstock
requirement such as Phosphoric Acid etc.
Generation of power
Exploration of Hydrocarbons
Value addition to Agro-products and marketing
IT enabled services and financial services

8. The raw materials used in IFFCO are:-
Ammonia
Phosphoric acid
Urea
Potassium chloride

9. To promote the economic interest of its
members by conducting its affairs in
professional, democratic and autonomous
manner through self-help and mutual co-
operation for undertaking.
To maintain transport units of its own or in
collaboration with any other organization in
India or abroad for movement of goods by land
and sea.

10. To provide technical consultancy and other
services to members societies and other
agencies.
To subscribe shares of co-operative and other
institution.
To act as an warehousing agency under the
warehousing act and construct its own godowns
or higher godowns for the storage of fertilizer
and other goods.

12. CHAIRMAN
MANAGING DIRECTOR
BOARD OF DIRECTOR
PRODUCTION FINANCE MARKETING
H.R MANAGER
MANAGER MANAGER MANAGER
SUPERVISOR ACCOUNTANT
FACTORY SUPERVISOR
MANAGER
WORKER
CLERK WORKER

13. There were 6 streams in IFFCO kandla plant they
are named as A,B,C,D,E,F.
They produce three product in IFFCO Kandla plant
they are:-
 NPK1
 NPK2
 DAP
These products should have their standard ratio
like:
NPK1 have (10:26:26)
NPK2 have (12:32:16)
DAP have (18:46:00)

14. IFFCO Kandla have the capacity of 9.10 lakh MT
P2O5 per annum equivalent to 24.20 lakh MT of bulk
fertilizer.
They import there main raw material urea from out
side countries because of some legal obligations.

15. FUEL OIL:- There are total of three vertical
cylindrical fuel oil storage tanks with unloading
and pumping facilities. The 250kl storage tank is
located at kandla phase-II plant. Two day tanks
are provided at the boilers for storage of fuel oil
used for steam generation.
PLANT AND INSTRUMENT AIR:- There are total of
four air compressors catering to both plant air
and instrument air requirements.

16. STEAM GENERATION PLANT:- Steam is
generated at a pressure of 10.5 kg/sq.cm gauge
and is in saturated condition. Three boilers are
available of type three pass, smoke tube
package boilers.
POWER:- Electricity is purchased from Gujarat
electricity board(GEB) through a double circuit
66 KV line from GEB Anjar. In addition to this
facility, they have one emergency power DG set
of 800 KVA capacity.

17. WATER:- Water is supplied by Gujarat water
supply and sewerage board(GWSSB) THROUGH
A 12” MS pipeline and is stored in three tanks
out of which two are MS tanks of 5000 KL
capacity. Another 1 tank is kept spare for fire
fighting purposes.
PRODUCT STORAGE AND BAGGING:- Two
covered storage silos for product storage are
available, one for kandla phase-I plant and the
other for kandla phase-II plant. Each of these
silos has a storage capacity of 30000 MT.

18. LIQUID CARGO JETTY:-IFFCO has
constructed its capative liquid
cargo jetty at kandla port for
berthing of ships carrying the
imported raw materials
phosphoric acid and ammonia.
It has a capacity of unloading
two million metric tonnes per
annum of liquid cargo.

19. CONCENTRATED SULPHURIC ACID
UNLOADING, STORAGE & HANDLING
FACILITIES:-
The tank has been constructed along with
diking facility. An 8 inch unloading line facility
from jetty to the main storage tank has been
provided.

20. Phosphorus
Ammonia Acid
Belt
Screening
Pornutraliser
(PN) Granulator
Hot N
Dryer
Slurry
Production Cooling
Process Fume
Conveyor
Bagging
Distribution Wagon

22. A quantity of items that are processed together. In
the process phosphoric acid, urea, potash and
ammonia are processed together.

23. A method in which production of the item
begins in advance of customers needs. The
fertilizers are made ready before they reach the
farmers and the needs and wants of the farmers
are fulfilled.

24. The operations are repeated daily in the plant.
The process are done in a standardized form.
The labours process the fertilisers, load them in
the wagon and then they are sent.

25. In IFFCO Reward System is planned
and followed. Employees are given
rewards on several activities
organized in the organization.
We observed some of the
Rewards given to the employees
when we reached IFFCO on
4th march which was
National Safety Day.

26. The ISO 14000:2004 standards require
documentation of a firm’s environmental program.
According to the International Organization for
Standardization, “ the ISO 14000:2004 family
addresses environmental management by
specifying what the firm does to minimize harmful
effects on the environment caused by its activities,
and to achieve continual improvement of its
environmental performance.”

27. Documentation standards that require
participating companies to keep track of their
raw materials use and their generation,
treatment and disposal of hazardous wastes.
To reduce and control pollution IFFCO releases
only 1% unwanted gas.
In IFFCO they even do not waste water. The
waste water is reused in some other uses in
the plant premises only so that it don’t harm
environment.

29. Internal and external
customers
Inputs
•Workers Outputs
•Managers •Goods
•Equipment Processes and
•Facilities operations
•Materials
•Land 1 3
•Energy
5
2 4
Information on
performance

31. Less customer contact and customization
Process
Less process divergence and more line flows
characteristics High interaction Some interaction Low interaction
Flexible flows
with Front office
individualized
processes
Flexible flows Hybrid office
with some
dominant paths
Line flows, BACK OFFICE
routine work
performed

32. A back office process has low customer
contact and the work is standardized and routine.
In IFFCO plant the process of the fertilizers are
done repeatedly, they have low customer contact
and are passed on to their customers who are
farmers after the final process.

34. Less customization and higher volume
Process
Low volume Few major High volume
characteristics Multiple products
products products products
Customized
process job process
Less divergance and more line flows
small batch
Disconnected process
line flows
large batch
process
Connected Line process
line
Continuous
Continuous flow process
flows

35. Ammonia, urea, phosphoric acid, potassium
chloride are the primary material that continues
its flow till the end and the same process is
repeated in the plant.

36. Automation is a system, process or piece of
equipment that is self-acting and self-regulating.
In operations managers favor fixed automation
when demand volumes are high, product
designs are stable and product life cycles are
long.
Over here labours are there to look after the
process while the whole process is carried on by
the machine itself.

37. A systematic management approach that focuses
on actively managing those constraints that
impede a firm’s progress toward its goal.
Plant makes use of its resource effectively and
tries to attain profit in all prospects.

38. As their raw material come from ship so they
have to keep raw material inventory but for
final product they do not keep any inventory
they make product and send to HO daily directly
from their bagging plant. So by this we can say
that they are using centralized
placement inventory because
they made and send the product
within there plant warehouse
in wagons.

39. In IFFCO kandla their whole supply chain is
handed over by HEAD OFFICE here in IFFCO
kandla they just take the raw material from ho
process it and then send the final product to HO.
So here they do not have any supplier or
customer relationship system.

40. Location is helpful to reduce the transaction
cost.
There are some dominant factor in
manufacturing they are as follows:-
 Favorable labour climate
 Quality of life
 Proximity to suppliers and resources
 Other factors

41. LOAD DISTANCE METHOD:- Here we can say
that IFFCO kandla used load distance method
because this model is used to evaluate location
based on proximity factors the distance is less in
shipment between plant to reduce the load
distance score.
OPERATIONS PLANNING &SCHEDULING:-
 Part time workers
 Subcontractors
 On role workers {shifts}

42. They do not use any PLANNING STRATEGY
because of safety there workers do there work
in shifts and go home and if any one wants to do
overtime then they have to take prior
permission from HR department.
SCHEDULING EMPLOYEES:- They give them
shifts to work so they know that at what time
they have to come and do their work.

43. ROTATING SCHEDULES:- They use this concept
so that they change their shifts.
RESOURCE PLANNING:- In IFFCO KANDLA they
do not do any resource planning because here
they only produce and send their product to ho
in standard quantity.