Case Analysis of Pranamik Cointaners
Business and Management
Submitted By divya1306
For Office Use: Grade | |
Written Analysis and Communication
Individual Assignment No. 2
Case Analysis Report on
“Pramanik Containers And The Bottleneck
Piyush Mehta who has completed his MBA degree in family business joined his father business,his father is running pramanik Ltd. since 1977 and his major vendor since than is ABC Pharma,a leading MNC. Piyush on reviewing came to know that there is a problem in printing department. when he investigated further he came to know that there is no proper system of keeping plates used for manufacturing which resulting in delay of manufacturing process.Workers are also careless in doing their jobs.This events made piyush ask his father to tackle the situation in his own way and he agreed so.
Word count :105 words
Pramanik Containers PVT Ltd. was a family business set up by Bansilal Mehta in 1977 to provide aerosols to ABC Pharma, a large multinational company. This deal started off as a joke turned into suppilier. As capabilities of Pramanik expanded more customers signed up to do business but ABC remained its key customer.(Exhibit 1).
Piyush Mehta,the only son of Bansilal and also an MBA graduate in family business joined his father’s business in May 2010.Piyush started his work by reviewing order flows in the company and was particularly intrigued by printing department which showed signs of bottleneck.
Pramanik has four automated aerosols machines(Exhibit 2 ). With Pramanik expansion Bansilal gained a good knowledge about the industry requirements and began to manufacture entire range of products which can be used in any customers’ automatic packing lines
Piyush walked into the printing area and saw Shankar(Exhibit 3) sleeping his helpers were also nowhere to be seen, piyush also noticed a huge pile of unfinished work pending. He woked up Shankar and asked his reason for not working, in reply Shankar furiously replied that he is waiting for the plates as his helpers have gone to find them, saying this he left for canteen. Piyush went up to the factory supervisor for enquiring into this matter but as he was busy solving a breakdown, he asked Rakesh, he explained him how they have to wait for the plates for the manufacturing process, sometimes they need to buy new ones in case of emergency. Also till all the shift plates are found they cant start printing as it would be uneconomical.
When piyush asked his about system for maintaining these plates, rakesh told him that they have a larger product mix with short runs and some customers had larger runs for a single order so it was difficult to maintain records of these plates in a register. They tried to maintain customers record in a lot of 80 in register but it lead to confusion due to large NO. of customers. Rakesh told him that currently they are on register NO.312 (Exhibit 4).
Rakesh also told him that they have hired two workers to help them out in searching these plates. he also told him that as these plates are located late the process also starts late which result into huge overtime bills. Rakesh asked him that they can run a shift later or pay Shankar extra for maintaining records.in return rakesh explained him that they order new plates only in case of a emergency, also Bansilal is against paying shankar for additional work. He also told piyush that bansilal prefers buying new plates in case of an urgent order.(Exhibit 5). Piyush suggested for duplicate plates but he told him that Shankar has a different collection of plates for fast-moving orders, they have to hire two other helpers for these, and secondly they don’t have enough storage space for plates for which bansilal has applied for a loan to accuquire additional space in the factory next door, he further continued saying that bansilal has been advised to install a ERP system.(Exhibit 6)
Piyush on returning to his desktop, looked up for pramanik accounting records(Exhibit 7).He also found aforementioned registers dumped in a corner, he noticed staff has stopped writing in them. He than walked to store where he found Shankar slightly awaked, shankar explained him that as last night he worked till 3 a.m to complete ABC’s order for which he has to clean the machine which everytime wastes his lots of time. he also complained about his being overloaded with work.
Piyush decided to talk to bansilal about the current scenario in the factory and asked to handle them in his own way,banshilal after few negotations agreed. Piyush now thinks of various alternatives and the ways to implement them for which he has to force his father to invest.
The main problem of Pranamik Ltd was the proper and systematic record of plates used for manufacturing, apart from this the miser Behavior of Bansilal to spend his earning on investing plus hiding profits to save tax, storage problem and the cleaning process of machine are the major problems that pranamik Ltd. was facing.
1)To keep a proper record of the plates used for the manufacturing.
2) Cut down extra expenditure.
3) Change Bansilal’s attitude.
4) Proper cleaning of machines.
1) Hire a clerk to keep a proper and systematic record of plates. 2) Arrange for duplicate plates. 3) Proper check at orders completion so that they don’t convert into urgent orders. 4) Try to convince bansilal to invest in his business 5) Appoint a helper to clean the machine.
EVALUATION OF OPTIONS: 1)Hire a clerk : Piyush can think of hiring a clerk to keep a proper and systematic record of plates as hiring a clerk would be much cheaper than spending on buying new plates and wasting time in searching old plates which leads to delay in work. 2)Duplicate plates:In case of emergency duplicate plates can be used, a considerable NO. of such Plates can be kept for emergency.it should be kept in a small number and kept separately so can be used on-time. 3)Proper check: A check should be kept on the completion of orders as delay in these orders lead
them to become an “emergency order”.proper check on this orders can lead to cost reduction. 4) Convince Bansilal : Piyush should try to convince his father to invest more in his business so that his business activities are carried out in a proper way which can lead to expansion of his business. 5) Appoint an helper: An helper should be appointed to look out on the cleaning of the machines Before they are used for manufacturing.
OPTIONS | Hire a clerk | DuplicatePlates | Proper check | Convince Bansilal | Appoint an helper | Proper records | * | _ | * | * | * | Cut down extra expenditure | * | * | * | * | * | Change bansilal’s attitude | _ | _ | _ | * | _ | Proper cleaning of machines | _ | _ | _ | _ | * |
As now piyush will be handling company’s condition, he should first try to convince his father to give him money to invest than he should first appoint an clerk to keep a record of all the plates. He than should try to make some space in his factory for duplicate plates as lending a new place means extra cost, therefore he should try to make space in his own available storage.
1) Piyush should try to convince bansilal to invest in the business by learning him the profits he will get so by doing that.
2) Appoint a appropriate person as a clerk to look after plates systematics records.
3) Try to make space in his own factory for duplicate plates.
4) Order duplicate plates in a fixed and proportionate number.
5) Appoint a helper for the cleaning of machines.
The above action plan depends upon Banshilal decision to invest,if in case he doesn’t get along with it then piyush should look for other alternatives,one possible alternative could be that instead of hiring anyone he can himself look for proper records of plates.and allocate proper duties to current staff so that delay and reducancy in work is reduced.
EXHIBIT 1 :Journey of pramanik container
EXHIBIT 2 : Aerosol manufacturing process * Aerosol manufacturing was a high speed,high volume process. * Pranamik has four automated machines into which dimensions of the containers were entered and the machine would manufacture the finished aerosol cans. * Printing department decorated it according to customers requirements. * Printing machine has a very high capacity of 300 part per minute, one can easily complete the work in one day.(3 shifts) * Aerosols were mostly used by the cosmetics,perfume and pharma companies.
EXHIBIT 3: Characters * Bansilal Mehta : owner of pramanik Ltd. * Piyush Mehta : son of Bansilal * Shankar : Head printer * Rakesh : Accountant * Helpers : 2
EXHIBIT 4 :Scientific method of lot “80”:In a 100 page register they used to write down entries of 20 customers but it could fix upto 16 entries per page therefore they arrived at a figure of “80”
EXHIBIT 5:Emergency order: in many cases helper doesn’t find tha plates the order gets asides and the end of the month a day before his delievery date its becomes urgent,in that case bansilal prefers to buy new plates,he calls them as “emergency orders “.
EXHIBIT 6:100 companies in india has the ERP installed in it
EXHIBIT 7:Statiscal Details about pramanik Ltd. * 100 customers about whom 15 are regular ( including ABC pharma) and these customers make up more than 80% of the order. * During past 15 years,30,000 designs have been produced for these 15 regular customers. * Over the course of 6 days a week pramanik manufactures about 30,000 cans/day,resulting from about 60 orders/day. * Plate costs about 7000/piece and pramanik use it theoretically for more than 10,000 and repeat a order of 200 units. * Average run size was 500 units. * Material costs were 26/can