Written Analysis and Communication
Individual Assignment No 1
Case Analysis Report
‘Primanik Containers and bottleneck’
The case describes an inventory management conundrum in a customer centric manufacturing firm, Primanik Containers.A fresh B School Graduate (Family Managed Business) ,Piyush Mehta, tries to tackle the problem as he learns about his father,Mr Bansilal Mehta’s, enterprise. He tries to find the bottleneck in the firm’s functioning and identifies the printing department as the one. He investigates and finds that the firm is underperforming mainly due to the absence of timely availability of raw material. He finds that the problem further results in additional costs on human resource, raw material and storage and also overtime expenses.
Primanik containers is a family owned manufacturing firm started by Bansilal Mehta in 1977 after an informal meeting with the then purchasing director of ABC Pharma. ABC Pharma had a supply problem and Bansilal was quick to sense the need and hence formed Primanik to address ABC’s supply problem. Thirty three years down the line ABC (along with others) is still a loyal client of Primanik containers and still gets its manufacturing outsourced from them. The firm’s maximum orders still come from its long term special customers indicating the customer centric approach that the firm adheres to. To complete these orders the company uses four automatic machines for manufacturing aerosol cans according to the dimensions entered and a high output(300 parts per minute) printing machine which could complete a ‘three shift work’ in one shift. Piyush Mehta is Bansilal’s only son and is a fresh B school graduate in Family managed business (FMB) from a well reputed institute. He decides to put his education into practise by analysing the order flows. He finds that the printing sector is a bottleneck. Piyush starts to investigate the matter by meeting all the concerned employees. He goes to the printing area and meets the head printer Shankar sleeping with a pile of unfinished work by his side. On asking the reason for the apparent lackadaisical approach Shankar, with arrogance, answers that he is waiting for the printing plates to arrive. Shankar is considered to be the best printer to ever come across by Bansilal who considers a replacement for him a very difficult task. On finding the factory supervisor busy with a broken line Piyush approaches the accountant Rakesh who tells him about the difficulty in finding used plates for repeat orders which in-turn results in a lot of time wastage. This delay causes the shift to start late and hence a lot of overtime expenses for the printing crew. In addition late night shifts and searching of the plates makes the workers tired and hence less productive.The record keeping methods of the firm are based on register entries which piles up a lot of registers with hundreds of entries and makes data retrieval cumbersome. Hence before finding the plates generally a lot of time is also consumed finding the registers. The whole process lasts till afternoon after which the printing job starts. Due to the mismanaged storage sometimes plates are not found and the order is put on hold and at the end of the month gets converted into an urgent order, to be delivered within 24 hours. This generates immediate need for the plates and hence propelled Shankar to make a storehouse for newly made urgent need plates in case old were not found. The increasing no of plates in the storage required the cost burden of two additional men to manage it along with the general cost of making new plates. On analysing numbers it was found that in terms of production-per day the firm was lagging behind by a big margin. Bansilal is reluctant to pay any extra amount on people, warehouses and hence the budget for any overhaul is nil.
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