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Grade

Communication for Managers

Submitted by:
Name: Saransh Bagdi
Roll No: 161253
Section: B
Batch: MBA FT (2016-2018)

Institute of Management, Nirma University

Executive Summary

Pramanik containers Pvt Ltd. is aerosol can manufacture which also customize these can
according to customers need. It was established as family business by Banshilal Mehta in 1977
to help out ABC Pharma supply problem from its vendor. Piyush Mehta is the only son of
Banshilal is about to join his family business. As he gets engage with operation activity of the
organization, he finds that there are many flaws in the system. Piyush is recently passed out
from SPJIMR and he was eager to put his FMB education into practice. He comes out with two
solutions.

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Situational Analysis:

Pramanik Containers Pvt Ltd. was started as a joke over a drink and it eventually turned out to
be sole supplier of ABC Pharma, a large multinational company. Pramanik is aerosol cans
manufacturing company established by Banshilal in 1977 as family business. It has created
reputation in market over its quality and fast services. Pramanik has achieved turnover of
around Rs.315 million. Bunshilal has the ability to develop business relations and work hard
to satisfy customers need. Aerosol cans production procedure is high-speed, high-volume
process. Bunshilal is fond of technology. Therefore, he had installed four automatic high-speed
machines in which dimensions of the container that is to be produce need to be enter. These
machines operate at a rate of 25 can per minute. Pramanik has huge production capacity on
paper. Aerosols were mostly used by cosmetics, perfume and pharma companies. Due to
vagaries of the market; these companies used to outsource aerosol manufacturing operation to
vendors like Pramanik. Availability of automated machines enabled Pramanik to produce wide
range of cans for different segments.

In May 2010, Piyush Mehta, only son of Banshilal has completed family-manged business
(FMB) from SPJIMR and is interested in joining his family business. On the first day itself he
encountered unexpected events. There was a vast room for improvement in certain operational
activities like record keeping and printing plate management. Although, Pramanik has always
managed to achieve customers satisfaction level. Pramanik had fabrication capacity of 48,000
cans per shift of 8 hours and printing capability of 1,44,000 units per shift of 8 hours (Exhibit
1). Per day there are three shifts. However, after having such a huge manufacturing capacity
they produce only 30,000 cans per day. They get 60 orders per day out of which 80% are from
regular customers.

Pramanik keeps the record of plates for all the customers. However, they dont know when an
order will be repeated. Even after maintaining records, every month 6-7 orders need to be
completed in emergency because there printing plates were not found earlier and duplicate
plates has to be made which costs around Rs. 7,000 per plate. This non-efficient way of
recording leads to wastage of time, space and money.

Banshilals approach towards business is customer oriented and he try to satisfy customers at
any cost. But he practices some unethical actions. Since 1980, he is showing losses in the

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balance sheet to save taxes. Despite knowing all the problems and situation in plant he had not
taken any action. His attitude of negligence towards problems had affected employees
efficiency and discipline.

Problem Statement

Inefficient and ineffective way of record keeping and management of printing plates.

Objectives

1. Nullifying emergency situation.

2. Removing sunk cost.

3. Develop rules and regulation to control employee.

4. Developing business.

Options:

1) Software can be used to record keeping instead of register.

2) Separate storing places of plates for regular and other clients.

3) Disposing duplicate plates of non-regular customers.

4) Hiring new employee.

5) Installing ERP system.

Evaluation of Option

i. Separate documents can be made for record keeping of plates for each customer. It will
be effective way of finding records and it is time effective also. Use of software will
eliminate register cost. There are softwares in market which are easy to operate.
Software can be costly.

ii. Though 80% of the orders are from regular customer, separating storing places will
help in finding plates. Separation will also help in removing the plates which are no
more in use. But separation will be time consuming and will take a lot of efforts.

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 iii. A plate can print 1,00,000 impressions. Duplicates plates of non-regular which were
created during the emergency can be disposed in order to free storing space. As chances
of getting bulk order frequently from such customers are very less their duplicate plates
can be disposed. If in case, there is repeat order from such customer than new plates
need to be created which will cost extra money.

iv. As pramanik is already paying overtime wages to Shankar and his crew, they can hire
some new employee instead. Hiring new employee will increase the efficiency and
effectiveness of an operational activity. More number of workers can create chaos at
work place.

v. Installing ERP is best option but it has a huge cost incurred with it.

Decision

From the matrix (exhibit 2) it is clear that option 1 & 5 are viable. I can say that over short run
using software for record keeping is best option. Because most of the sunk cost and extra wages
are generated due to poor management of plate record.

Installing ERP system will be the best option. Though, it is costly installing it over shorter run
will not be a good idea. So installation of ERP can be best fit for all the problems over longer
run.

Action Plan

Company need to purchase software and accordingly an operating system. Experts for
operating software need to be hired. Plates need to be tagged with some code and those code
should be communicated to software operators.

Contingency Plan

If bansilal rejects above solution, then hiring of new employee will be best option available.

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Exhibits

Report Exhibit 1

Fabrication Capacity/shift = (manufacturing rate/minute) *60(for an hour) *(Number of

=25*60*8*4 = 48000

Fabrication Capacity= (Fabrication capacity/shift) * Shifts

= 48000*3 = 1,44,000

Printing Capacity/shift= (Printing rate/minute) *60(for an hour) *(Number of hours in a shift)

=300*60*8*1 = 1,44,000

Printing Capacity= (Printing capacity/shift) * Shifts

= 144000*3 = 4,32,000

Report Exhibit 2 Option-Objective Matrix (Evaluation of Options)

Objectives/Options Option 1 Option 2 Option 3 Option 4 Option 5

Objective 1

Objective 2

Objective 3

Objective 4

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UNDERTAKING

To Whom It May Concern:

I, Saransh Bagdi hereby declare that this assignment is my original work and is not copied from
anyone / anywhere. If found similar to other sources, I shall take complete responsibility of the
action, taken thereof by, CFM Team.

Signature :

Name : Saransh Bagdi

Roll No. : 161251

Section : B

Batch : MBA FT (2016-2018)

Date : 23.08.2016

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