UNIVERSITY

INSTITUTE OF ENGINEERING

CAMPUS

A Report On
Maintenance and Human Resources of Biscuit Industry

A Case Study of

Prepared By:

SUBMITTED TO DEPARTMENT OF INDUSTRIAL ENGINEERING

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF BACHELOR IN
INDUSTRIAL ENGINEERING

DEPARTMENT OF INDUSTRIAL ENGINEERING

i
 COPYRIGHT
The author has agreed that the library, Department of Industrial Engineering, Campus,
Institute of Engineering may make this report freely available for inspection. Moreover,
the author has agreed that permission for extensive copying of this project report for
scholarly purpose may be granted by the professor(s) who supervised the project work
recorded herein or, in their absence, by the Head of the Department wherein the project
report was done. It is understood that the recognition will be given to the author of this
report and to the Department of Industrial Engineering, Campus, and Institute of
Engineering in any use of the material of this project report. Copying or publication or
the other use of this report for financial gain without approval of the Department of
Industrial Engineering, Campus, Institute of Engineering and author’s written permission
is prohibited.
Request for permission to copy or to make any other use of the material in this report in
whole or in part should be addressed to:

Head
Department of Industrial Engineering
Campus, Institute of Engineering

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 UNIVERSITY

INSTITUTE OF ENGINEERING

CAMPUS

DEPARTMENT OF INDUSTRIAL ENGINEERING

This is to certify that the project entitled "Maintenance and Human Resources of a
Biscuit Industry" is the bonafide work carried out by, Students of BIE, IOE, Kathmandu
during the year 2021 AD in partial fulfillment of the requirements for the award of the
Bachelors in Industrial Engineering. We wish them success in their future endeavors

________________________________________

Internal Supervisor
Department of Industrial Engineering

_______________________________________
Head of Department
Department of Industrial Engineering

Date: ____________________________

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 ABSTRACT
The objective of this report is to acquire the knowledge about the plant in the production
of steel in large industries. This report is an attempt to present the subject in a simple and
informative manner because the competent material to familiarize with the processes is
somewhat lacking. The maintenance and human resources and very much required
because of the fact that no machine can run continuously effective over its life time and
human resources must be utilized effectively for the better performance of the industry.
Industrial visit of this kind has always proven to be beneficial to us. We have learnt in
the internet and theories, the explicit exposure of the students in real field has opened
doors to self-confidence and understanding. While we were making this report we choose
Nebico Biscuits as reference. It has got sole right of Biscuit Production in Nepal since
and it is the leading brand of biscuit production in Nepal with a very high market share.
In this approach we have tried to summarize all the things which we learnt and understood
during the one-day visit. Finally, after the study and making of this report, it is concluded
that the maintenance and Human resources are one of the key factors for any industries.
Timely done maintenance and effectively used human resources can lead to the success
of any industries.

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ACKNOWLEDGEMENT

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 TABLE OF CONTENT

COPYRIGHT ................................................................................................................. ii
ABSTRACT..................................................................................................................... iv
ACKNOWLEDGEMENT ................................................................................................ v
TABLE OF CONTENT ................................................................................................... vi
LIST OF ABBREVATIONS ......................................................................................... viii
LIST OF FIGURES ......................................................................................................... ix
CHAPTER ONE: INTRODUCTION .............................................................................. 1
1.1 General Objectives ............................................................................................. 1
1.2. Specific Objectives ................................................................................................ 1
1.3. Introduction to Nebico Pvt. Ltd. ............................................................................ 1
CHAPTER TWO: LITRETURE REVIEW ..................................................................... 2
2.1. Maintenance ........................................................................................................... 2
2.1.1. Introduction ..................................................................................................... 2
2.1.2. Objective ......................................................................................................... 2
2.1.3. Maintenance Planning..................................................................................... 2
2.2. Human Resource(HR)............................................................................................ 2
2.2.1 Introduction ...................................................................................................... 2
2.2.2. Principle of HR ............................................................................................... 3
CHAPTER THREE: RESEARCH METHODOLOGY .................................................. 4
3.1 Field Visit and Survey ............................................................................................ 4
3.1.1. Interaction ....................................................................................................... 4
3.1.2. Questionnaire Preparation............................................................................... 4
3.1.3. Data Collection: .............................................................................................. 4
3.2. Data Analysis ......................................................................................................... 4
3.3. Electronic Resource ............................................................................................... 4
3.4. Limitations ............................................................................................................. 5
CHAPTER FOUR: MAINTENANCE ............................................................................ 6
4.1. Introduction ............................................................................................................ 6
4.2. Manpower .............................................................................................................. 6
4.3. Critical Space Inventory ........................................................................................ 6
4.3. Types of Maintenance ............................................................................................ 6
4.3.1 Predictive Maintenance.................................................................................... 6
4.3.2. Preventive Maintenance .................................................................................. 6
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 4.3.3. Breakdown Maintenance ................................................................................ 7
4.3.4. Scheduled Maintenance .................................................................................. 7
CHAPTER FIVE: HUMAN RESOURCES .................................................................... 9
5.1. HR Department Classification ............................................................................... 9
5.2. Recruiting and Hiring ............................................................................................ 9
5.2. Orientation and Training ...................................................................................... 10
5.3. Employee Retention ............................................................................................. 10
5.4. Staff Relation ....................................................................................................... 10
5.5. Attention and Recording ...................................................................................... 10
5.6. Staff Administration and Support ........................................................................ 10
5.7. Work days and Holidays ...................................................................................... 11
5.8. Quality Management In Nebico ........................................................................... 11
CHAPTER SIX: CONCLUSION AND DISCUSSION ................................................ 12

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 LIST OF ABBREVATIONS
C-O-T Cleaning-Oiling-Tightening
HR Human Resources
HRM Human Resources Management
ISO International Organisation For standards
Ltd. Limited
MT Metric Ton
PLC Programmable Logic Control
Pvt Private
SAC Staff Association Committee
Sq. ft. Square Feet

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 LIST OF FIGURES
Figure 1: HR Department Classification .......................................................................... 9

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 CHAPTER ONE:
INTRODUCTION
1.1 General Objectives
The objective of our visit was to study about the maintenance and human resources
management of the biscuit industry Nebico Pvt. Ltd.
1.2. Specific Objectives
To study about how the maintenance procedure is carried out.
To learn about the organisational structure of the Nebico.
To know about the activities performed by the different Human Resources (HR)
department.
1.3. Introduction to Nebico Pvt. Ltd.
Nebico Private Limited is a pioneer biscuit industry in Nepal situated in Balaju Industrial
Corridor, Kathmandu, occupying 73000 sq feet of the land.Initially established as
National Biscuit and Company Private Limited in 1964 (2021 BS) by late King Mahendra
Bir Bikram Shah Dev, it got its present name later in 1968. However, it was only in 2023
BS that the company started its production process due to machinery problems. It came
to operation leading as a biscuit and confectionary manufacturer of Nepal in 1967 to
substitute imported biscuits and confectionary. The factory of NEBICO was established
with the capacity of six metric tons per day and in 1968, it further increased its capacity
from 2 MT to 10 MT. In 1980, it collaborated with a leading biscuit manufacturer of
India, Britannia Industries Limited, for technical and production purpose and it later
joined the Stock Company as well.
The company currently (2010) has been running two shifts (eight hours shift basis) and
according to the 2001 data, the annual production of the company is around 2400 metric
tons. Initially the company has been certified for ISO 9001: 2000 and has voluntarily
adopted ISO 14001:1996. Currently, the company has adopted ISO
9001: 2008. Besides, Nebico Private Limited has subscribed to the Global Compact
Company.

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 CHAPTER TWO:
LITRETURE REVIEW
2.1. Maintenance
2.1.1. Introduction
Maintenance is the discipline and profession of applying engineering concepts for the
optimization of equipment, procedures, and departmental budgets to achieve better
maintainability, reliability, and availability of equipment.
Maintenance, and hence maintenance engineering, is increasing in importance due to
rising amounts of equipment, systems, machineries and infrastructure. Since the
Industrial Revolution, devices, equipment, machinery and structures have grown
increasingly complex, requiring a host of personnel, vocations and related systems needed
to maintain them. Maintenance is to ensure a unit is fit for purpose, with maximum
availability at minimum costs. A person practicing Maintenance is known as a
Maintenance Engineer.

2.1.2. Objective
• Minimizing the idle time of maintenance workers.
• Maximizing the efficient use of work time, material, and equipment.
• Maintaining the operating equipment at a responsive level to the need of
production in terms of delivery schedule and quality.

2.1.3. Maintenance Planning

Effective planning and scheduling contribute significantly to the following:
• Reduced maintenance cost.
• Improved utilization of the maintenance workforce by reducing delays and
interruptions.
• Improved quality of maintenance work by adopting the best methods and
procedures and assigning the most qualified workers for the job.

2.2. Human Resource(HR)

2.2.1 Introduction
Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. The responsibilities of a
human resource manager fall into three major areas: staffing, employee compensation
and benefits, and defining/designing work. Essentially, the purpose of HRM is to
maximize the productivity of an organization by optimizing the effectiveness of its
employees. This mandate is unlikely to change in any fundamental way, despite the ever-
increasing pace of change in the business world. The basic mission of human resources
will always be to acquire, develop, and retain talent; align the workforce with the
business; and be an excellent contributor to the business. Those three challenges will
never change.

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2.2.2. Principle of HR
Business consultants note that modern human resource management is guided by several
overriding principles. Perhaps the paramount principle is a simple recognition that human
resources are the most important assets of an organization; a business cannot be successful
without effectively managing this resource. Another important principle, articulated by
Michael is that business success "is most likely to be achieved if the personnel policies
and procedures of the enterprise are closely linked with, and make a major contribution
to, the achievement of corporate objectives and strategic plans." A third guiding principle,
similar in scope, holds that it is the HR's responsibility to find, secure, guide, and develop
employees whose talents and desires are compatible with the operating needs and future
goals of the company. Other HRM factors that shape corporate culture-;whether by
encouraging integration and cooperation across the company, instituting quantitative
performance measurements, or taking some other action-;are also commonly cited as key
components in business success. HRM, summarized Armstrong, "is a strategic approach
to the acquisition, motivation, development and management of the organization's human
resources. It is devoted to shaping an appropriate corporate culture, and introducing
programs which reflect and support the core values of the enterprise and ensure its
success."

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 CHAPTER THREE:
RESEARCH METHODOLOGY
3.1 Field Visit and Survey
In order to get the information and concept we visited the factory of Jagdamba Steel which
is located in Simara, Bara. We approached the firm formally and requested for employee
working in the factory to help us provide the necessary information.

3.1.1. Interaction
We frequently made interactions with the mechanical engineer of the factory during our
visit. The interaction was either directly or indirectly. In either of the cases the authorized
personnel responded soundly and we were highly benefited from their words.

3.1.2. Questionnaire Preparation

Some questionnaire was designed for this study, basically all members of the group
prepare separate questionnaire sheets and selected from them. There was a live question
answer session during face to face dialogue with the concerned individuals at the visit.
We were highly obliged with the way they responded to us as they humbly accepted to
answer our questions.

3.1.3. Data Collection:

Primary Data Collection: The data are collected through the direct visit to Jagdamba Steel
factory. Through the oral and informal discussions regarding the topics with the related
officials also proved beneficial for the project.

Secondary Data Collection: As a secondary source of data, newsletters, magazines,

annual reports, and broachers related to the topics were gathered.

3.2. Data Analysis

Available data of this report has been analyzed through the descriptive technique i.e.;
interpretation of presented table in words and the explanation of the qualitative
information in an organized way.

3.3. Electronic Resource

We also used the electronic resource to the collection of secondary data and literature
review as available i.e.; many websites, documents and related reports in electronic
version.

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3.4. Limitations
There is lack of information to justify this report as a complete one. Very few
data/literature were found in websites and it is other printed form and our approaches in
the concern authorities were not perfects to do a complete report in this vague subject.
Report/study is also based upon the secondary information

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 CHAPTER FOUR:
MAINTENANCE
4.1. Introduction
Biscuit Production operations need a very good maintenance management system for
efficient running of plant. Maintenance activity needs regular monitoring and records to
evaluate problems and their solution. Biscuits maintenance has its own features which
need attention apart from regular maintenance practices. Break downs lower production
output and have to be reduced to minimum. To achieve lower down time a robust
maintenance system with skilled manpower are required.

4.2. Manpower
Nebico have an maintenance manager who is responsible for all activity related to plant
and machinery. Depending upon the size and hours of operation, factory have skilled
technicians who performs maintenance jobs. Planning and scheduling is done with
machine history. Idle time available for maintenance and requirement of machinery in
accordance with production planning .
4.3. Critical Space Inventory
A small store to cater all critical and regular spares with a person responsible for
monitoring/inspection/liaising for stock out material /indent with purchase dept is kept in
nebico. Concept of making spare available at work station or production hall are popular
in many other factories also.
4.3. Types of Maintenance
4.3.1 Predictive Maintenance
This method is used for prior diagnosis of any aberration from ideal operations with
help of sensing equipments through Inspection.
Heat
Noise
Smell
Equipment used in nebico were Multimeter , Ultrasonic equipments , Vibration
analyzer , Decibel Meters , Infrared equipments .Now days PLC based systems are
common hence system health can be checked through various software .
4.3.2. Preventive Maintenance
This is the most common practice for plant maintenance as this is based on equipments
life. Preventive maintenance is scheduled weekly. Preventive maintenance is done with
schedules in hand and planned and required spares are ordered as per plan .Preventive
maintenance main activity can be divided into C-O-T

C -Cleaning of equipments .Very Important as majority of break downs happens due to

lack of proper cleaning

O - Oiling or topping for gearboxes , chain and sprockets , moving parts , lubricating
systems .

T -Tightening of all fastener which have loosened in operations or which could not be
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done in course of production .

For Nebico biscuits, preventive maintenance is done on weekly basis. Maintenance jobs
needed to be done are listed in the period of the week and all critical repair, replacement
and modification are done on preventive maintenance along side with the regular COT.
4.3.3. Breakdown Maintenance
Break Down maintenance requires immediate actions as to run the production with quick
fix solution or whatever best in that circumstances. Break down maintenance needs to be
re done when we take preventive maintenance of the equipment. This may require certain
by pass, modification and alternation from basic set up. For such type of maintenance
skill and level of experience of the technician comes into role .Therefore training and
seminars are conducted in certain times to improve the analytical and trouble shooting
skills of the technicians . In Nebico biscuits, breakdown maintenance is done when certain
system is failed but can be fixed or repaired easily in a short period of time. In that case
the whole production system is stopped for a while and the system is replaced or fixed
immediately.
4.3.4. Scheduled Maintenance
In Nebico scheduled maintenance is done in the span of 3-4 months. Its like a major
maintenance where all the major machinery equipment related with the plant and the
whole plant itself is checked and analyzed. Basically following machineries are checked
with main focus:
1) OVEN
 Checking of the oven band conditions.
 Checking of the band tracking system.
 In case if it is found that oven is band to be damaged from sides that section
is cut and a new section is putted for the damaged section.
 Checking of air circulating and turbulence fan, its v belt and bearings.
 Checking of the band brush.
 Checking of the oven drive motor.
 Checking of all the burners.
 Cleaning of all nozzles for burner and changing the choked nozzles.
 Changing the damaged electrode of burners.

2) PACKING MACHINES
 Checking of all heaters and replace the damaged or non working heaters.
 Checking of all cutter and anvil and changing the damaged one.
 Checking of all photo sensors.
 Changing of damaged lugs and setting stack length.
 Checking all conveyors and changing the damaged conveyor web.
 Adjusting the stack length through cross pusher.
 Synchronizing speed of auto feeder and cross pusher.
 Checking printer for impressions on wrapper.

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3) CONVEYORS
 Checking all rollers and replace the damaged and worn out rollers.
 Putting proper lubricant to all gear boxes.
 Adjusting the roller as per web tracking.
 Adjusting the tension of web by rollers adjustment.

4) LAMINATORS
 Checking the pneumatic circuit and pressure.
 Checking the stroke of all trolleys in laminator.
 Checking all webs and rollers in laminator.

5) GAUGE ROLLERS
 Checking the chain and sprockets.
 Checking the geared motor.
 Checking the moulder or cutter gears.

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 CHAPTER FIVE:
HUMAN RESOURCES
5.1. HR Department Classification

HR DEPARTMENTS

PRODUCTION

QUALITY

MAINTENANCE

FINANCE

MARKETING

ADMINISTRATION

INVENTORY

Figure 1: HR Department Classification

5.2. Recruiting and Hiring

While the industry traditionally used unskilled, entry-level workers, technology requires
specific skills supporting your company's tasks. HR policies may spell out these skills as
minimum qualifications as a guideline for screening and interviewing. If business is
subject to fluctuations in demand, creating a policy covering the use of temporary staff to
cover peak periods helps the efficient use of workers for whom you likely pay an agency
a higher hourly rate than regular staff, without the experience or productivity.

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5.3. Orientation and Training
Some elements of training are mandated outside small business, such as Occupational
Safety and Health Administration training or state-sanctioned equipment training, for
example. Building this into HR policy is a due diligence safeguard, illustrating company's
intent to comply. Spelling out how you implement that training makes policy stronger.
Mandating an orientation package for new recruits in your policy aids their period of
settlement. Consider assigning plant tours and on-the-job training in HR policy, so that
all involved know who is responsible for getting new hires up to speed. Well in nebico,
different training programs are held in certain period of time. Different trainings related
with maintenance practice, manufacturing, directing, controlling and improving the
overall development of the trainees which helps in the development of problem handling
ability of the employees.
5.4. Employee Retention
Nebico makes an investment with each employee hired. It gives strong demand for skilled
workers, it addresses employee retention in HR policies to prevent workers from leaving
before investment in their training pays off. While wages and benefits contribute to job
satisfaction, HR policies that clearly outline job descriptions, chains of command, dealing
with workplace issues such as harassment and resources that employees can access also
contribute to a culture that engages staff.
5.5. Staff Relation
Good staff relations are crucial to ensuring the highest levels of staff well-being and
productivity. HRM in nebico devoted greater attention to strengthening communication,
in order to gather and share information efficiently and effectively. HRM in nebico works
in partnership with the Staff Association Committee (SAC) to ensure that staff concerns
are raised and addressed constructively. In addition to participating in the Joint
Administration/Staff Association Committee, it initiated and responded to separate
requests for discussion with the SAC on matters of mutual common interest.
5.6. Attention and Recording
To keep the daily records of the employees such as arrival time and departure time, they
use basic registering technique where every employees put their signature on the register.
That register is then verified by the department. There isn't provision for home employees
in this company.
In nebico the total employees signed for permanent contract are 245 which includes 195
males and 50 females. And apart from that, a total number of 115-120 daily workers also
work in different shifts. The whole production is carried out in 3 shifts as morning shift,
afternoon shifts and evening shifts. Permanent workers are paid on monthly basis whereas
the daily workers are paid wages at the end of the shift.
5.7. Staff Administration and Support
Nebico coupled the Organization’s expansion with a mechanism enabling HRM to
respond to and support growth in a cost-effective manner. Delocalization of staff
administration functions is a work in progress, and much was accomplished during the
reporting period. Concrete achievements include the consolidation of functions such as
streamlined hiring, the administration of Associate Experts, interns and consultants,
increased capacity and accuracy for payroll functions, and the preparation of essential

10
statistical data. Human Resources of nebico Operations continues to develop and enhance
its internal processes in order to improve service delivery.
5.8. Work days and Holidays
In nebico, there is a provision of 1 day weekly vacation. If any additional vacation is
needed, then employee are needed to give application letter with suitable reasons. And
also there is a provision that if you want to work extra during the holidays, you can come
to work and extra wages are added to their salary. So overall nebico knows that holidays
are part of the production and it greatly affects the employees overall productivity and
performance which will be in turn beneficial to the industry itself. However, if any
employees or workers had a contract that entitles them to 20 days annual leave plus all
industry and public holidays, they should be entitled to the additional industry holidays
as well as annual leave. In nebico, the latter one is commonly in practice.

5.9. Quality Management In Nebico

Quality assurance involves sampling biscuits on the conveyor belt prior to packaging
every ten minutes. The biscuits are tested for moisture, colour and weight, to ensure the
product is of best quality. Hygiene is a main concern when packaging items. Prior to
packaging the biscuits must be checked my inspecting staff on its appearance. Once
packaged the biscuits are checked for contamination and weight. Biscuit flours, water
absorption levels, dough development times are constantly checked as a quality control
factor.
The quality check includes following main parts;
 Pack weights and examination of process control pack weight records
 Pack appearance, correctness of coding/overprinting
 Storage tests to check pack performance and product shelf life
 Recording the incidences of broken biscuits within pack
 Metal detection facilities, review of “finds” from the automatic machine
 Organoleptic checks( tasting tests) on biscuits texture and flavor
 Warehouse conditions, e.g. Stacking and rotation of stocks
 Procedures for loading of trucks and damage during distribution
 Storage conditions and stock rotation at depots

So nebico insurance quality with different advance quality testing techniques to check the
quality such as moisture content, fungus/insect infestation, ash, baking, net weight, gross
weight by the means of different chemical experiment and use of advance equipment such
as four digit weighing machine.

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 CHAPTER SIX:
CONCLUSION AND RECOMMENDATION
6.1. Conclusion
So from this visit, we get to know about the overall organizational structure of nebico
including its different deapartments such as production, maintenance, marketing, quality
etc. It provided us about the overall Human Resources in the industry and also the
knowledge about how the relationship between employees and higher ups affect the
productivity and overall performance of the industry. The presence of HRM provided us
the knowledge about the man management of the industry.
We also learnt about different types and processes of maintenance done in an biscuit
industry and how the maintenance work is planned, scheduled and operated. It provided
us with significant perception about how the overall plant is maintained and what are the
consequences when the plant is not maintained timely. We get to know all about this from
the overall analysis of the nebico Pvt. Ltd.
6.2. Recommendation
Although all the plants seemed to be efficiently running but a few things looked as if it
could be improved;
 Since the boiler temperature sensor seemed to be not working at times. So the use
of infrared temperature sensor could be used.
 The normal conveyor belt needs to be replaced frequently so modular conveyor
belt could be used instead of it.
 Automation seemed to be needed.
 Safety measurements such as CCTV and safety signs could be added in the plant
location.
 Providing labor insurance for their safety.

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CHAPTER SEVEN:
REFERENCE

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