EXECUTIVE SUMMARY

BDK engineering industries ltd internationally recognized compan\ .\ bout BDK I submit
my project report. It contains lot of findings, stigcst on and conclusion also. The
overview of the project report I summaries in this spot.
The main objective of the study is bat to know the production excellence of the
BDK.BDK uses high Quality of raw materials and also get certificate ftorn ISO
9001:2000.company also offering a powerful combination of low prices and high Quality
are capturing, the heart and wealth of consumer.
These are all information collected from primary data collect 1mm inlefvieu s with
BDK’s managers, worker and some other knowledgeable persons ahou companies. The
secondary data collected from hooks, journals and vebsite.
My project report mainly focuses on production and Quality management. How much
production is important similarly Quality also very important. Production and qualities
are contributory each other in development ol industry. Quality management contains
mainly three points that is Quality control, Quality assurance, and Quality important.
These are three points covers in this project report
This project report finds some weakness of the BDK. These are cost ft)r maintaining
sanders is high. This is the one of the major weakness ol the 13[)K and here there is no
financial control this is also the major weakness ol the 131)1K. this project report also
provides some remedies. These are to adopt aggressi\ advertising with regard to their
competitors. To provides more infirmation about the valves and pumps to its employees.
It helps to company.
Finally I conclude about this project report the BDK company production and service is
excellence.
Objectives of the study

a. To know the production excellence of BDK

b. To know the Quality control principle, of the BDK.
c. To know the production scale of Bf3K.
d. To know the different aspects of Quality management in BDK.
e. To fulfill the partial fulfillment of BBA degree
f. To find out the different in theoretical aspect used in industries
g. To know the production process of the BDK.
Scope of the study
L Project report summaries production and Quality management of the Bl)K.
2. Project report covers the theory aspect, of relates to the production Quality of the
management of the BDK.
3. Project report also summaries strength and weakness, opportunities and threats of the
BDK.
4. Project report provides production process of the Company.
Methodology
Collection of data is problematic once. We collect data main1 and other one is secondary
of data.
Primary data: primary data is collected throughout personal interviews the concerned
officers and executives in the relevant fields. The other source of the data collection was
the observation method where in observed the working of the process in the company.
Secondary data: the Secondary data was collected by referring various magazines related
to the topic and also by searching internet. The information regarding the organization
collected through company website.
Limitation of the study

1. Time constraint
2. This project report contain only on production and Quality management.
3. It covers only production and QuãTity management theory aspect.
4. Managers are so busy, therefore collection the data very dificu1t.
5.The result of the study cannot be generalized it is specific to one particular company on
one particular topic.
ORGANIZATION STRUCTURE OF BbK:

SIC - Section In Charge

FTC - Functional In Charge
MR - Management Representative
SC - Sales Co-Ordination
QA - Quality Assurance
PPC - Production Planning
PRObUCTION PROCESS

During the course of technical arrangement of various facilities such as machinery,

equipment etc. it is necessary to give considerable emphasis on a proper plant layout to
achieving their optimum utilization. Like industrial location, plant layout is also is of
great strategic importance. The reason is that once the plant & equipment are erected, it
would buy very difficult & costly to change layout. Therefore, one needs to keep in mind
some importance aspects while deciding the plant layout. They are,
i. Production technology & production mix.
ii. Efficiency, economic & uninterrupted flow of men & material.
iii. Adequate space for maintenance work.
iv. Scope for future expansion.
v. Scope for future diversification of the project.
vi. Adequate safety precautions as & when need.
vii. Healthy conducive layout of the plant.
viii. Proper lighting & ventilation.
ix. Proper provision for effluent disposal, if necessary.
x. Effective supervision of all sorts of activities carried at the plant layout side.
xi. Provision for proper storage, stocking etc. where needed.
A proper plant layout ensures various advantages to the enterprises,
The important one are:
Increase in productivity.
Optimum utilization of floor space and other areas of operation like loading and
unloading.
> Effective supervision and control over industrial activities.
Improvement in working environment.
- Economy in material handling.
Optimum investment in p1nt and building.
The backbone of any small enterprise is the products or ser ices it olèi.s. Therefore, what
to product and how to produce is the first step in the evolution of an operational system.
In other words, product design is the key strategic decision an entrepreneur ahs to take at
the very beginning. Therefore, one necds to keep in view various factors like changes in
environment, technology and consumer taste/requirement while finalizing products
design. ‘This also means that product launching should be dictated by market demands.
But, product design is not easy task that anyone can do on his/her own, The fact remains
1hit a right type of products design involves certain considerations/stages to he weighted.
Generally, an entrepreneur needs to keep the lollowing considerations in view while
designing his/her products:
> Standardization
Reliability
Maintainability
Servicing
> Reproducibility
Sustainability
Product Simplification
Quality commensurating with cost
> Product Value
Consumer Quality
Scheduling is crucial to successful production. It is importani fr hoth hatch i.e. special-
order and continuous production situation. The primary objective of scheduling is the
smooth flow of material through the production process. Simply stated, scheduling is a
system of planning and keeping track ot manpower, equipment and material used, It
ensures when to start work on a given order and by what date it should lie completed.
Production Planning & Control
Production planning involves the organization of an overall manufacturing or operating
system to produce a product.
The various activities involved in production/operation planning are designing the
product, determining the equipment and capacity requiiemeni. designing the layout of
physical facilities & materials handling slein. determining the sequence of operations and
the nature of the operations to he performed along with time requirements and specifying
certain production Quality levels.
Production planning and control function essentially consists o1 p’anning
production in manufacturing organization before actual production activities
starts and exercising control activities to ensures that the planned Production is
realized in terms of Quality, quantity, delivery schedule & the cost ol
production.
Objective of Production Planning & Control
‘ To deliver Quality goods.
To ensure maximum utilization of all resources.
‘ To ensure production of Quality products.
‘ To maximize the product through-put time.
To maintain optimum inventory levels.
To maintain flexibility in manufacturing operations.
> To co-ordinate between labor & machines and various supporting departments.
‘- To plan for plant capacities for future requirement.
Rote of PPC:
> The main role of this department is to organize materials prccurement. production
planning & periodic review with all concerned heads.
> To plan for manpower and equipment for production & control purposes.
> To plan and organize the layouts of RPD & assembly for effective operation.
To co-ordinate & arrange for the prevention, break down & maintenance of machinery &
equipment.
Conducting design review meeting, non-conformance reviews meeting, customer
complaints meeting & Quality audits for finding out solutions.
PLANNING SECTION
PROCEDURE
Production plan for the month is prepared in the previous month in consultation with
sales co-ordination department.
Following work orders are considered to prepare the production plan
Work orders which are overdue as on last day of the current month.
> Work orders which are due in the month for which the production plan to he made.
> Work orders which are due in the next months.
Left over work orders from current month’s plan.
The reference for processing is given considering the following points.
Work order due date.

> Urgency from the sales co-ordination department.

Material availability of all the components.
Referring the above mentioned points & considering the monthly production capacity, the
production plan is finalized any work order received after making production plan for
which if mate’rial is available, the same is included in the production plan in the form of
additional sheet.
Shortages for the production plan is worked out for follow up
As per shortage list, the material is sent to respective supplier referring the approved
supplier list & raising material requisition to stores.
RPD requirement for the production plan is worked out & given to RPD components to
be rubber lined are loaded by issuing respective job cards.
Tentative inspection plan for clients/third party inspection is prepared & given to sales
co-ordination department reviewed & modified periodically as required.
Monthly dispatch plan is prepared in consultation with sales coordinalion department &
given to painting packing & dispatch section.
Wherever control copies of drawings are not available, requisition is given to design &
development against work orders. After completion of the order. the drawings are filed in
completed work order file.
Production plan is also prepared for processing of the stock items as required.
PRObUCTION, PLANNING ANb CONTROL bEPARTMENT:

{A(iM J. J. I ppin
It helps to understand the influence of planning activities at every stage of production a
sound planning and control policy and its implementation shall never fail producing a
Quality product.
Objectives:
To plan and meet production requirements as customer satislaction through continuous
improvement in planning, procurement, processing and optimum resource utilization.
> To identify and control the customer supplied product. Process of the PPC Department:
> Detail study of work order is done specifications and requirements are studied.
Availability of raw-materials, semi-finished goods, finished goods are worked out.
Production plan, Inspection plan and dispatch plan are drawn and issued to concerned
department.
Requisition to stores for semi-finished goods and raw-materials to send for processing to
sub-contractors.
> PPC Department receives WO/OA amendment or inter-department memo from sales
co-ordination.
bESIGN ANb bEVELOPMENT DEPARTMENT:
[AGN/I — Prasanna Sable
It is a core section of any manufacturing company. It is a section where the design and
development of products carried out. The BDK Company has a ftill pledged Design and
Development Departmçit.
The complete product range is designed and developed by this deparunent. Each product
is tested as per the testing standards and Quality norms are laid down
ensure high Quality product, employees in this department are technically quali fled.
Objectives:
> To design and develop the Quality products which are i’eliable, economical,
predictable and meets the customer requirements.
To continuously improve the Quality of all products structure.
Requisition to stores for assembly material assembling o[ is material is done at this stage.
,- After assembling products are offered for inspection and testing in the Quality
assurance dept. The testing facilities include vacuum testing. helium testing and modern
test beds.
Cleared products are sent to dispatch section.
Quality management
What is Quality?
Companies offering a powerful combination of low prices and high Quality are capturing
the hearts and wallets of consumers. Today as value drives companies are growing in
number, they a’re moving from computing on Irice to providing Quality, service and
convenience.
befinition of Quality/
l)”Quality is a state in which value entitlement is realized for the customer and provider
in every aspect of the business relationship.
2)”The total set of features and characteristic of a product or service that delerminc its
abilities to satisfy stated or implied needs”
Quality management
Quality management can be considered to have three main components:
Quality control, Quality assurance and Quality improvement. Quality management is
focused not only on product Quality, but also the means to achieve it. ()uality
management therefore uses Quality assurance and control of processes as well as
products to achieve more consistent Quality.
Quality management evolution
Quality management is a recent phenomenon. Advanced civilizations that supported the
arts and crafts allowed clients to choose goods meeting higher Quality standards than
normal goods. In societies where [{art]responsibilities of a master craftsman (and
similarly for artists) was to lead their studio, train and supervise the work of their
craftsmen and apprentices. The master craftsman set
BbK maintains Quality in its production. Let us see some
ppints how they maintain Quality.
Reliability (Trustworthiness)
The Quality associated with a product often increases with the dependability of the
product customer experience. BDK produc are very reliable as other unifying companies.
Durability
The Quality attribute that implies product performance under adverse conditions.
Safety:
This is an attribute of Quality that measures the likelihood of harm tiom goods. BDK
company’s products are well packed and its protect from Safety: Use high Quality raw
materials and also get. ISO Certificates that shows ho’ 1 maintains Quality and shows
safety also.
Environmental friendly or Eco friendly:
This Quality attributes has both societal aspects and is individual specific. Te
requirements for being considered an environmental friendly product is becoming more
stringent (strict).The BDK also follows environment health and safety poIic. The BDK
engineering industries is every Eco friendly BDK gets C’ertificate There are
EMS: -Environmental Management System Serviceability.
This attribute relates to the ease and cost associated with servicing a product aller the
sales has been made. The service of BDK in the field of sales sector appreciated by the
market.
Aesthetics: ‘Relating to appreciation of the beautiful).
Aesthetics are hard to define
“It is customer specific and sometimes situation specific what is aesihcticall pleasing to
one individual may be considered ugly by another.”
Attribute Consistency:
The attributes associated with a product should be internally consistent.
Quality principles
Eight Quality management principles have been enunciated by the International standards
Institute (ISO) on which the Quality management systeni standards are based, we will use
these principles as our project report to discuss the subject.
There are
Principle —I-Customer focus:
Organizations depend on their customers and therefore should understand current and
future customer needs should meet customer requirements and stri\ e to exceed customer
expectation. We see in earlier introduction of BDK Engineering industries BDK focuses
on four elements. Customer focus is the first elements BDK listen to what his Customers
say and try to respond with innovations, often taking a long-range view when
implementing solutions.
Principle-2 Leadership
Leaders establish unity of purpose and direction of the organization. They should create
and maintain the internal environment in which people can become [ullv involved in
achieving the organization’s objectives. This worth automatically done
Principal-6 Continual improvement
Continual improvement of the organization overall performance shruld he permanent
objective of the organization take BDK engineering industries last 3 decades
continuously improve their Quality standards and performance. This shows principle 6 of
ISO Quality rnanageent is fulfilled in BDIK Engineering industries.
Principle-7 Factual (Reality) approach to decision making.
ISO ‘s Quality management presents another principle it seas ef1ctjve decision are based
on the analyses of date and information cook BDK take decision on base of analyzing
real problem and looks real information related to the problem. So the decisions are
factual approach.
Principles-8 Mutually beneficial supplier relationship
It means — An organization and its suppliers are interdependent and a mutually
beneficial relationship enhance the ability of both to create alue.
In BDK understanding between supplier and company very good and mutual beneficial.
These principle give an overview of total Quality management and show how
collectively, they can form a basis for performance improvement and organizational
excellence.
Responsibilities of the Quality control dept
Quality control deep consists organizations senior executive, dept manager and senior
management, here discuss about some responsibilities of Quality control dept.
Principal-6 Continual improvement
Continual improvement of the organization overall performance shruld he permanent
objective of the organization take BDK engineering industries last 3 decades
continuously improve their Quality standards and performance. This shows principle 6 of
ISO Quality rnanageent is fulfilled in BDIK Engineering industries.
Principle-7 Factual (Reality) approach to decision making.
ISO ‘s Quality management presents another principle it seas ef1ctjve decision are based
on the analyses of date and information cook BDK take decision on base of analyzing
real problem and looks real information related to the problem. So the decisions are
factual approach.
Principles-8 Mutually beneficial supplier relationship
It means — An organization and its suppliers are interdependent and a mutually
beneficial relationship enhance the ability of both to create alue.
In BDK understanding between supplier and company very good and mutual beneficial.
These principle give an overview of total Quality management and show how
collectively, they can form a basis for performance improvement and organizational
excellence.
Responsibilities of the Quality control dept
Quality control deep consists organizations senior executive, dept manager and senior
management, here discuss about some responsibilities of Quality control dept.
1. The Quality control dept is typically charged \vith the responsibility Ir designing the
overall strategy for Quality planning control and improvement.
2. It establishes trust and eliminates fear amongst the emploveex and ensures
miscommunication between the various levels of an organization is minimized.
3. It ensures that it provides people with the required resources, training and freedom to
cut with responsibility and accountability.
4. Quality Improvement activities are seen as important as other management tasks and
leaders can integrate Quality lmpro\ emeni it into every aspect of their operations.
5. Activities are evaluated aligned and implemented in a unified way. lhe involvement of
senior management advances the objectives of the council by inspiring encouraging and
recognizing people’s contrili it ions.
“Vital Essential Important Few and the useful many”
Vital few and the useful many the idea is to prioritize which Quality improvement
projects should be undertaken by the organization. In any organization, there can be a
lengthy list of possible ideas for improvement. Since the resources to actually implement
new ideas are linked leaders must choose those vital few projects that will have the
greatest impact.
Quality and organization culture.
Quality is not program it is an outcome that evolve from an oruanizaton and culture. It is
focused an the customer and on achieving organizational exeeHenuc leaders have a
powerful vital and decisive role in creating a Quality culture leaders have to we
concerned with success as mich as with failures in crating this culture. They have to focus
not only on understanding “sub standard” but also * super— standard” performance. The
effective leader creator opportunities tr below and above overage performance to interact.
The overall Quality will not continue to improve unless leaclet’s continue to improve.
Quality leadership and Management are requisite to improving and sustaining systemic
performance results and improvement.
Barriers between bepartments
Barriers between organizations or between departments with in one organization are
obstacles to effective Quality Improvement. Inter department or intra-organization
friction or lack of co-operation results in waste errors, delay and unnecessary duplication
of effort.
A Continuous and lasting Quality Improvement program requires team worth that crosses
traditional organizational lines. It requires that all worth force members, departments, and
units share a unified purpose direction and commitment to improve the organization
Intra-organizational pathways are clc\ eloped an ci cultivated as mechanism by which to
improve performance.
Develop Quality Strategy
The Quality Strategy of the organization has to be based on the resources n the
organization The strategy should be designed to provide competitive advantage. Effective
leaders are knowledgeable about the works being done and understand the environment
and complexities with which their workers must contend. They also know the needs offl
interested parties including customers owners. Employees, suppliers financiers local
communities.
QUALITY ASSURANCE bEPARTMENT:
[AGM - VI. V. Gudil
Quality refers to best sort of product that is free from defects whereas assurance refers to
secure confidence of customers or insurance.
BDK group of companies is certified with 1S0900 I-R WTOW of Germany. The
vindication of BDK’s Quality lies in the acceptance of its products by leading players in
the industrial market. There has always been continuous innovation and improvement
effort to develop and refine the products uniquely to the specialized needs of various
industrial applications.
Functions:
> Functional responsibility for smooth operation and administration of all the activities
for enhancing the Quality inbuilt in product.
> Establishing and maintaining Quality system and reporting Quality status to the
management.
Participating in design review verification activities and internal audit management
review, customer’s complaints review
Adopting new conceptual instruments and systems as appropriate to Quality control and
improvement.
> Developing new techniques for improved inspection method and preventing non-
conformance.
Ensuring the Quality of components and product at incoming stage. packing and finally
dispatching.
Responsibility to ensure that Quality of incoming raw materials and brought out item and
sub-contracted items are in accordance v ith the establishment procedure.
MATERIALS ANb STORES bEPARTMENT:
[AGM - C. Francisj
Materials department deals with purchase, sub-contractors and stare. The head of
materials department through the management representatives issues material as per work
instructions and maintain records of the same.
Objectives:
> To plan and procure materials and services confirming to specified requirements.
Purchases and stare materials till they are issued far use.
The HOD has managerial responsibilities far effective tunctioning of material dept.
Material dept. has to plan for manpower, select and approve sub- contractors.
Communicate periodic performance rating to sub-contractor and issue receipt storage
handling presentation and issue of material. It has to maintain identification and easy
location of products.
The HOD of material dept. is authorized to approve sub-contractors and issue PO/PO
Amendment letter of intend work instruction and approve of sub contractors list issue of
product drawing and purchase corresponding is also done by HOD.
PURCHASE bEPARTMENT:
It receives material intends from material inventory far scrutinite and initiate procurement
activities.
Purchasing of order is realized an approved sub-contractor against material intend. In
case of any subsequent change that are required to any purchase order amendments are
issued indicating the changes required to the purchase order.
Purchase order and order amendment shall be checked and rev iewedby FtC purchase and
approved by section in charge purchase. All materials are verified at stores according to
purchase orders.
When the materials are received at all stores GRIR is prepared and hand it over to IMI for
further inspection. In case of non-conference communicate to sub-contractors all the non-
conference items are returned hack to sub-c(ntraclor and replacement are received.
Materials received in excess of ordered Qualit) may accept up to 10% subject value of
Rs.5000/-.
Procedure: The control is exercised over the suppliers through the performance rating
computed from their supplier need.
The approved suppliers are assessed through their performance rating computed on the
basis of their supply need during the last quarter of every year that is January to march.
And computed once in year.
In case of temporary supplier making the supply of product directly going into the final
products, performance rating is derived and communicated for every quarter.
The performance rating can be computed by the following 1&mula
PR(x (Qi) + xl (Q2) + x2 (Q3/Q) * 100
PR — Performance Rating.
Q — Total Quality supplied.
Qi — Indicates conforming quantities.
Q2 —Indicates quantities accepted with non-conference.
Q3 — It indicates quantities de1iveredwithin due date.
X - Merits factor for Q1=0.50.
Xl — Demerit factor for Q20. 15. X2 — Merit factor for Q30.50.
STORES bEPARTMENT:
Activities of stores dept. are numerous. The stores department receives materials are in
following ways:
> Sales return from customer.
> Customer supplied products.
> Materials purchased from manufacturing ring department.
Finished products.
Purchased order and order amendment shall be checked and reviewed by FIC purchase
and approved by section in change purchase and approved h\ section in change purchase.
All materials are verified at stores according to purchase orders.
When the materials are received at all stores GRIR is prepared and hand ii over to IMI for
further inspection. In case of non-conference communicate to sub-contractors all the non-
conference items are returned back to suh-coniracioi’ and replacement are received.
Materials received in excess of ordered (hialiy may accept up to 10% subject value of
Rs.5000/-
SWOT ANALYSIS
The overall evaluation of a company’s strengths. \\eaknesscs. opportunities & threats are
called SWOT Analysis. T h 131)K his following SWOT Analysis.
STRENGTHS:
> They are large scale manufacture & suppliers of valves & pumps.
> They have good reputation in the market.
They are recognized by their Quality.
They have been awarded ISO 9001/1994 certificate by well equipped calibration room
and a chemical & metallurgy laboratory.
> They have efficient & well qualified personnel.
They have provided & healthy environment to the employee.
• > They have monopoly in diaphragm valves & ball valves.
They follow standard system for all activities.
‘ They have provided many facilities to their employees.
They covers whole of North Karnataka & provides all t’jies of’ services regarding valves
& pumps.
WEAKNESS
Cost for maintaining standards is high.
They don’t have financial controller.
They have less computerized system.
> They have high oriented cause due to excessive labor force.
> Needs up-dating with the times in terms of plant & machinery.
Labor turnover is high.
OPPORTUNITIES
There is no more restriction for movement of products in the world due to globalization.
There is no sales tax & excise duty on employees.
> There are many foreign countries still to be covered.
To diversify their business to FMCG market.
Opportunities to enter IT field.
Good export market should tap foreign market vigorously.
At present it has good raw-material sources to increase production.
THREATS
More competition from Multi National Corporation’s (MNC),
Many foreign valve companies entering the domestic market because of’ globalization.
‘ Valve & pumps industries are in the grip of recession.
> Heavily depending on foundries because of causing & other ra\\materials.
There is a need for renovation of plant & machinery.
Government interference may reduce growth potential.