AN ANALYSIS OF THE CAUSES FOR SICKNESS OF A PRODUCTION UNIT - A CASE STUDY

Abstract

In this application paper, the causes for sickness in a fertilizer unit in India are discussed in detail. The concept of  retention price, the methodology followed in fixing the retention price  of fertilizer  companies by Fertilizer Industry Co-ordination Committee (FICC) is explained. The importance of specific consumption norms of basic raw materials and its dependence on the capacity utilisation of the plant is discussed. The Total Productivity Measure (TPM)  of this production unit, year wise, over a period   of time is computed and presented. The capacity utilisation of the plant over a period of time is also presented. The reasons for low productivity and low capacity utilisation are discussed at length. Some measures are also suggested to improve the capacity utilization and  consequently the productivity of  the  production unit.