|Jagatjit Industries Limited (JIL) is a significant Indian Made Foreign Liquor (IMFL) producer in the country. It manufactures and markets alcoholic beverages and malt-based health foods. The food division, which is the focus of this case study, has its own malt house, malt extract plant, a modern dairy and a malted milk food manufacturing unit. Here JIL manufactures malt-based health foods (milk additives) under contract for a quality-conscious multinational corporation with very high standards. Although the food manufacturing process is relatively straightforward, production was considerably lower than installed capacity for several reasons. JIL needed to resolve this rapidly and by introducing a TRACC “Proof of Concept”, CCi could help them achieve this.|
The Malted Milk Food division has four production lines with a capacity to manufacture 140 tons of high-quality malted milk food per day. Production was considerably lower than installed capacity, despite having sufficient demand. There was an urgent need to generate value within a very short period. JIL has a unionized workforce and the management had introduced contract labor to help boost flagging production levels.
Apart from having to increase workforce engagement in such a diverse setup, JIL management also had the following operational challenges:
- Yield could be improved
- Throughput was being impacted due to a significant number of short stops
- Improper handling of equipment resulted in significant downtime
- Constantly changing contract labor
- Lack of an appropriate performance measurement system (level of detail, frequency of measurement and the reporting/review mechanism)
What impressed us most about CCi was their ability to hit the ground running and the experience they brought which began to show results immediately.
Roshini Sanah Jaiswal,
Chief Restructuring Officer
These challenges had to be addressed within the constraints of stringent health and safety standards set down by JIL’s multinational client, which required constant employee orientation.
The CCi approach of implementing world class shop floor management systems (leveraging its global experience in food and beverage) — coupled with significant focus on employee engagement and empowerment — was what JIL was looking for. The mandate for CCi was to improve throughput to achieve demand requirements, which was anticipated to be a lift of around 30% within 12 months.
Initial time was spent on introducing world class manufacturing practices to the operating teams. This was done through several working sessions during which their challenges were discussed and prioritized for further investigation, based on impact.
The CCi team facilitated the establishing of cross-functional teams to include production, maintenance and quality teams. This significantly impacted the productivity and working environment. Each working group was taken through a process to help them understand the other party’s needs and requirements, which helped improve the partnership between the groups.
A pilot line was identified and several balanced metrics with a quality, cost and delivery focus were determined. These KPIs were crucial to align focus of the operations work group. A governance mechanism was set up to review these KPIs daily (at production/unit head level); weekly (at site head level) and monthly (at HO level).
A series of profitability improvement projects (PIPs) was established based on the manufacturing facility’s lost time and material study. Three PIPs were subsequently shortlisted (based on impact, difficulty and resource availability) and initiated. For each initiative, a project sponsor, team members and team leaders were identified; responsibilities assigned and a reporting mechanism implemented.
1. Optimizing wet food application
Malted milk preparation consists of combining milk with the mash liquor (resulting from a mash of barley malt and wheat flour). The mix is conveyed to mash tanks, where water at 40°C is continuously added to prepare uniform slurry. This is then spread onto baking trays after which the mixture is baked and cooled.
At JIL, inconsistent dosing weight and improper spread of wet food on the baking trays often resulted in inconsistent cooking of the melt, which caused serious maintenance and throughput issues downstream.
Based on detailed observations and working sessions with operators and supervisors, a multipronged approach to improving the situation was developed. A review of the process control mechanism and settings identified that tighter controls were required, specifically with respect to seasonal temperature variations and product variants. Some of the machine guides and fittings that had been broken or worn out over time needed to be restored. Several key areas of the machines were identified for routine cleaning to help maintain efficient machine operation.
2. Improving the baking tray management process
The malted milk food is generally prepared by drying the melt under vacuum. This is essentially a batch operation — the liquid extract is evenly spread over multiple trays to form a batch. The malt is then placed in a vacuum oven where it is dried into solid brittle cakes.
Due to the oven cooking process the general condition of the metal trays, specifically the flatness, is very important to ensure fast and effective cooking. Again awareness and diagnostic sessions were conducted with operators, supervisors and, in this case, the maintenance team too. The present process was studied and the cause-and-effect relationships were established in some key parameters, which led to uncovering many opportunities to improve the whole process end to end.
Some quick wins were achieved from the following:
- Setting quality standards for the trays
- Redefining the repair process
- Ensuring availability of the trays as needed while conforming to the new standard
Another focus area was to improve the ease of tray handling, thus reducing mishandling, damage and associated downtimes. The enhanced awareness and increased engagement of the key stakeholders resulted in rapid production improvements.
3. Reducing wet, unbaked food generation
While the granulating process (post the drying operation) is designed to handle only dry and brittle cake, the overdosing/misalignment of the melt from the spreader often resulted in wet, unbaked food being left behind on the trays. This resulted in process machinery downstream choking at several critical locations which led to loss of throughput and material, requiring additional reprocessing. The ovens also had to be cleaned more often than usually required.
Once again, awareness and working sessions were held with the operational teams to establish the critical factors for control. Standards were created where necessary. Certain machines were restored to basic (original) conditions. Simple machine inspection schedules were developed, with specific instructions on what and how to inspect and the standards to be compared with.
Quantitative results were highly encouraging and included the following:
- Up to 20% throughput increase within 14 weeks
- Demand fulfillment raised to meet customer requirements/achieve customer satisfaction
- Improved uptime of critical equipment
- Consistent production day on day, shift on shift
- Reduced wastage and spillage, further adding to profitability
Following is a graph indicating ROI over a seven-month period:
A critical qualitative result was the higher level of worker engagement. Teams now follow a systematic approach with interdepartmental, cross-functional meetings to solve problems, allowing them to uncover other improvement opportunities along the way. The management team and the shop floor are now also highly aligned.
|Jagatjit Industries Limited (JIL) is a significant Indian Made Foreign Liquor (IMFL) producer in the country and manufactures and markets alcoholic beverages and malt-based health foods. The modern malt house produces malt from the best barley sourced from selected farms producing the best grains in Punjab. This malt is used to meet JIL’s own requirements in both the Malted Milk Food and Distillery divisions. The dairy plant is primarily used for the production of milk powder, baby food, malt extract powder, malted milk food (spray dried) and clarified butter (popularly known as “ghee”).|
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