|For Office Use: Grade | |

Written Analysis and Communication

Individual Assignment No 2

Case Analysis Report On

‘Pramanik Containers And The Bottleneck Challenge (A)’

EXECUTIVE SUMMARY:

Pramanik Containers Private Limited (Pramanik) is an aerosol manufacturer which faces a problem of mismanagement of printing plates and maintenance of record which in turn increase overtime bill and emerged urgent orders. This mismanagement also has reduce the productivity of machines. Due to all this Bansilal, owner of Pramanik, was in dilemma about entering in new business. To resolve this problem of mismanagement it is better suited to use laptop of Piyush, son of Bansilal, to maintain record because it is highly efficient machine and able to track record in optimal time thus reduce tracking time and expenses.

Word Count: 98

SITUATIONAL ANALYSIS:

Pramanik Containers Private Limited (Pramanik), a family run and buyer to buyer business, was established by Bansilal Mehta. Pramanik emerged through Bansilal’s networking personality to gain an order of aerosol cans from ABC Pharma and became heart of ABC’s supply chain. His opportunist capabilities has helped to expand business by providing aerosols to other industries like personal care, health care and cosmetics industries. Pramanik was providing customized product with high quality and fast service.

Aerosol manufacturing process is two steps process, firstly, production of customized cans and then decoration of cans as per customers’ need. Pramanik has highly automated, high speed and high–capacity machines for both manufacturing as well as printing. For the former process Pramanik has 4 machines with total installed capacity of 144000 per day while later has capacity of 432000 per day (EXHIBIT 1). Pramanik’s utilized manufacturing capacity was 20.83% -(EXHIBIT 2) and also Piyush Mehta, recent business graduate and son of Bansilal, found that utilized printing capacity was showing constant bottleneck.

Piyush met the head printer Shankar, a self-centered person, and came to know that Shankar is waiting for plates to start work. To clear further doubts, Piyush met the Accounts assistant and came to know that for new order company makes new printing plates while for repeated order company uses the earlier made plates but employees were unable to track the plate easily due to mix up. Though company had register record for each customer but confusion arises due to large number of orders and often register get misplaced. To resolve this situation company hired two assistants to hunt for the plates but it was unsuccessful and company end up paying huge overtime bill. Also this inability leads to emergency order which incurred extra costs. The emergency order also leads to increase in inventory stock with minimum nine copies of same plate and this increased stock will again increases a tracking time. Pramanik kept on maintaining separate plates for all the customers despite some order match with other company’s order. Because of inability of tracking Bansilal was in dilemma of whether to bid for new business because it’s already a challenge for Pramanik to deliver existing order on time.

PROBLEM STATEMENT:

The problem was the mismanagement of printing plates which leads to increase in tracking time.

OBJECTIVES:

1. Reduction of tracking time

2. Reduction in overtime bills

3. No extra spending

4. Reduction in emerged urgent orders

5. Maintain record

6. Enter in new business

OPTIONS:

i) Use of Piyush’s laptop to maintain record

ii) Buy additional storage space

iii) Maintain record for top most 15 customers

iv) Identify the order pattern of top 15 customers

EVALUATION OF OPTIONS:

i) Use of Piyush’s laptop to maintain record:

As all the data will be stored in the computer the problem of keeping record and management of inventories will be solved. It is also easy to locate the store data with optimal time hence it reduces tracking time. As the plates will be tracked faster it leads to reduction in overtime bills. Emerged urgent order will also reduce because plates will be find as and when required and hence not postponing the work to when customer complains. Apart from this it does not require any additional spending because it owned by company itself. This will also help them to enter in new business as company will be able to maintain record for the new business. Though it will reduce the tracking time but there will be some time required to find the plates after identified it through laptop. Additionally there will be cost to train employee about how to maintain record.

ii) Buy additional storage space:

This will be a good option to buy an additional storage space which is next to company. This will help them to manage all their inventories. As all the plates are well spaced and managed this will reduce the tracking time which in turn leads to reduction in overtime bills and emerged urgent order. It will not help to maintain record of plates. Also the cost associated with space is high hence company has to pay high rent which uneconomical.

iii) Maintain record for top most 15 customers:

Company should maintain record for their main 15 customers and manage their inventories separately because they comprises of 80% of their business. Hence as the records are made it will be little easier to track plate. It will reduce overtime bills and emerged urgent order to certain extent as employee will be able to track plates as and when required. It does not require extra cost. Pramanik won’t be able to enter in new business because again it require higher keep of record. Some overtime bill will be there due to other 20% of customers.

iv) Identify the order pattern of top 15 customers:

Pramanik should identify the order pattern of main customers and try to manage inventory as per that pattern. Hence it will reduce tracking time to great extent which also leads to reduction in overtime bill and emergency orders. Maintenance of record is not there and high extra cost requires because firm has to recruit specialized person to do this task.

RECOMMENDATION:

From the options-objective matrix (EXHIBIT 3), the objectives can be best met by first option that is use of Piyush’s laptop to maintain record. This is good option because the computerized data takes quite low time to track record. Also the cost associated with it is negligible and Piyush may train the employees to maintain record this is not possible with other options.

ACTION PLAN:

To maintain record in Piyush’s laptop company should follow following steps:

a. Recheck all the plates

b. Identify the repeated plates

c. Remove unnecessary extra plates

d. Produce record for each plates in laptop

e. Manage plates in storage place as per the records

CONTINGENCY PLAN:

To maintain record for top most 15 customers company should follow following steps:

a. Identify the plates of 15 customers

b. Identify the extra plates

c. Remove unnecessary extra plates

d. Produce record for every customer in separate register

e. Manage plates as per records

Report Exhibit 1:

Installed capacity

| |No .of machines |Per hour output |Per shift output |Per day output |
| | | | |(total installed |
| | | | |capacity) |
|Can manufacturing |4 |25*60*4 = 6000 |6000*8 = 48000 |48000*3 = 144000 |
|machine | | | | |
|Printing machine |1 |300*1*60 = 18000 |18000*8 = 144000 |144000*3 = 432000 |

Report Exhibit 2:

Utilized manufacturing capacity = (No. of cans produce per day)*100 / (Maximum capacity of manufacturing machine)

= (30000*100) / 144000

= 20.83 %

Report Exhibit 3:

Options /Objectives

|Reduction of tracking time |Reduction in overtime bills |No extra spending |Reduction in emerged urgent orders |Maintain record |Enter in new business | |Use of Piyush’s laptop to maintain record |

|

|

|

|

|

| |Buy additional storage space |

|

|

|

| |

| |Maintain record for top most 15 customers |

|

|

|

|

| | |Identify the order pattern of top 15 customers | | | | |

| | |

UNDERTAKING:

To Whom It May Concern:

I, Zeel Maheta, hereby declare that this assignment is my original work and is not copied from anyone/anywhere. If found similar with sources, I take complete responsibility of action taken thereof by WAC team.

Signature

NAME: Zeel Kishorbhai Maheta

ROLL NO: 141460

SECTION: D