Slasonlop Manufacturing, Inc.

(SMI) 1
Case Study

1. Background of Slasonlop Manufacturing Inc. (SMI)

Slasonlop Manufacturing, Inc. (SMI) is joint venture incorporation between world

renowned British Sporting Equipment Company and huge Malaysian rubber plantation
company. The main production for this joint venture company is golf ball, supplying the ratio
of high demand gold ball throughout local market and worldwide. Slasonlop manufacturing
plant is currently located in Seremban, Negeri Sembilan, while the head office is situated in
the heart of Kuala Lumpur, Malaysia. The plant began operation of producing tons of golf
balls as early as 1985, where Mr.Frankie Zakaria is the current Plant Manager with total of 15
years experience in factory management.

2. The Organizational Structure

The plant is managed by Mr. Frankie Zakaria, with his new secretary Min-Ah. Former
secretary that used to work under him, Sharifa has left the company after receiving a higher
paying executive secretary position from another company nearby the plant. Figure 1.1
briefly explained the organizational structure in Slasonlop Manufacturing, Inc. (SMI). Ahmad
is currently the factory production manager and underneath his supervisions are 3 lead
foreman for 3 different shifts; morning, afternoon and night. Baba, the head of morning shift
with 21 production workers, or work forces (WF), followed by G.Kallahan, 21 WFs and the
well-experience Shariff, also with 21 WFs.

3. Scenario of Production Output

Based on current factory rated capacity, altogether with three-shift combined, 6-days
a week, the maximum production of golf balls (in dozens) that can be produced was 22,000
per month. The plant still have to cover the burden of pending orders from other subsequent
buyers which totalled of 11,000 dozens per month till the 1st quarter of 1991. The business
opportunity for Slasonlop in that year came in strong shape as they have received a
conformed letter of Credit (LC) of 40,000 dozens of golf balls from Japanese buyer. The LC

Slasonlop Manufacturing, Inc. (SMI) 2

Case Study

officially started on July 1990 and the expiry period was on December 31, 1990. If the plant
fails to deliver the requirement, not only Slasonlop will lose the entire order, but they also
would have to face the penalty of USD $20,000.

4. SWOT Analysis
Strength

JV between world renowned British

rubber produce outfit.

leadership.(demoralized)

The plant is steered by a well

Ahmad has been telling everyone to

experience person.

produce more than the set target,

LC from Japanese buyer will ensure

without any incentive to build of

the company to stay relevant in the

morale.

The stress of failing the requirement

Factory output was reasonably

of the Japaneses LC and possibility

satisfied before they received the new

of losing more money from penalty.

Workers are not agreeing to do

Quality of golf balls produced are not

overtime, so need new recruit to

suffered

cover the vacant shift.

Opportunity

Workers are not able to accept

Kallahans work style and

LC.

Sporting Equipment firm and large

market.

Weaknesses

Successfully deliver the demand will

Threat

Failure to deliver means losing the

boost the market rating and the image

opportunity of next bulk order, but

of the company throughout

also will be penalised.

worldwide recognition.

Mr.Zakarias wariness of the

increasing number of complaints from
the Union Federation Leaders

Slasonlop Manufacturing, Inc. (SMI) 3

Case Study

Figure 1.1: Organizational Structure at Slasonlop (Seremban)

5. Problem statement
With some pending demands from local buyers that need to be fulfilled, the company
yet received another promising letter that guaranteed them to boost more profit in future longrun. But, despite securing a steady LC from the Japanese buyer, the plant capacity could not
be able to withstand the newly improved demand for the business. The problem is simple;
how to fulfil the numbers of demand from the LC plus settling down the pending orders while
dealing the internal issue that leads the production of golf balls going downwards.
In such a short time period, the plant has need add a new extra-production scheme that
enables the shift to be stretched at night, which monitored by a well-experience foreman.
Also, numbers of demoralized workers has objected themselves to be put in the night shift;
leaving Mr.Zakaria with no other choices rather than deploying the 22 new additional
workers at night. Changing of foreman leads to complain about the shift-rotating system from
the workers.
Other related issue which are minor to the case are Ahmads professionalism, which
forced the workers to bail out from the production schedule because of tired being told to
work more hours without any incentive ahead.

Slasonlop Manufacturing, Inc. (SMI) 4

Case Study

6. Analysing the Situation

Since Slasonlop has been awarded with the LC, Mr.Zakaria has come up with a
strategy to commit with the demand, so that production numbers wont fall behind. Since the
departure of Sharifa, a well-talented secretary to assist Mr.Zakaria, then came Min-Ah into
the picture. A young, beauty lady and yet able to work well in the plant at first did not cause
any problems among the workers. But, since then, the issue of disciplinary has started to arise
as Mohamed and da Silva often wasting their time at her place, even though without any
appointment to see Mr.Zakaria, leaving their production workforces unsupervised.
Secondly, while Mr.Zakaria came up with diagnostic plan to add another shift at
night, the company also need to recruit 22 additional workers to support the production
numbers. Problem arise when Mr.Shariff, the talented and well-experience afternoon foreman
has been assigned into working at night shift, with the newly-addition of fresh and-lack-oftraining workers. Shariffs track record; based on the respond from the current workers has
stated that he is very friendly with his colleagues; professional and respecting others privacy
and personal problems. That explained why most workers admired him and why the number
of production increased before September 1990 at his performance. (See Figure 1.2)
Figure 1.2
Production Output (In Dozens)
Month

Plan

Actual

Feb 90

15,000

14,500

March

15,000

15,200

April

15,000

15,300

May

15,000

15,000

June

15,000

14,700

July

15,000

15,500

August

15,000

15,200

September

22,000

17,000

October

22,000

17,500

November

22,000

December

22,000

Slasonlop Manufacturing, Inc. (SMI) 5

Case Study

But, despite having Shariff monitoring the green workers at night, his coordination doesnt
affect the his track record, as his night shift has produce more than Baba and Kallahan; the
morning and afternoon foreman. Perhaps, the attitude differences between Baba, Kallahan &
Shariff adversely affecting the morale of the workers. However, it was unfair to pinpoint the
blame to Kallahan and Baba, as there other reasons behind the less production. Workers
frustration on how Ahmed ran the plant should be put into consideration also. Ahmed, the
Production Manager, had been telling everyone to stay back, work more in order to surpass
the set target, without paying them for extra hours that has been fulfilled.

7. Recommendation
Despite facing all kind of complaints from the Federation, regarding the behaviour of
Slasonlop superior, well it is agreeable that to deliver number of orders right on schedule
should become the plants top priority. As for the recommendation, to be fair to all workers,
especially seniors, the entire green intake should be placed in every shift, leads by those
three foremen. A combination of old and new team members should be mixed up so that the
new intake could learn how to operate the machinery more affectively. This would lead to
room for production improvements and mixed relationship among staff. Perhaps by having
this kind of method, the numbers of Breakdown by work Crew will have improvements, on
every shift.
Da Silva and Ahmed, who has been reported often wasting their time hitting on MinAh, should be put under intensive work monitor. All of the complaints from workers
regarding them should not be taken lightly. Reputation of the company and the conducive
mood for production always become number one in any plant, and if those 2 did now show
any promising steps to cover up their past mistakes, why keeping them?