Production Management

MGT 314

Section 01

Fall 2018
Topic
Shah Cement Operations Management
Submitted To:
Shaila Jahan Mona

Lecturer
Department of Management
North South University

Submitted by:
Saif Saem Islam 1420 659 030

Md. Rashedul Islam 1512 182 030

Shahera Mannan 1521 268 030

Md. Abir Hasan 1530 863 630

Md. Rakib Rayhan 1530 933 630

Date of Submission: 18th December, 2018

Ms. Shaila Jahan Mona

Lecturer

Department of Management,

School of Business and Economics, North South University.

Subject: Submission of a report on Shah cements Operational Management System.

Dear Madam,

In the following report we have presented the Shah cement Operational Management System

which you command us to prepare and submit by December 18th, 2018 as one of the Operational

Management (MGT 314) course requirement. This report helps us to find out how Shah Cement

production system works.

We have enjoyed making the report though it was not that much easy to complete the report

within the particular time. We have tried our level best to make the report realistic as possible

through providing relevant information.

Sincerely,

Saif Saem Islam _______________________________

Md. Rashedul Islam _______________________________

Shahera Mannan _______________________________

Md. Abir Hasan _______________________________

Md. Rakib Rayhan _______________________________

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Table of Contents

Brief Description of the Business:............................................................................................................1

Analysis of Production Strategies:...........................................................................................................3

Analysis of Shah Cement’s Facility Layout:............................................................................................4

Production Process....................................................................................................................................7

Operation Process....................................................................................................................................10

Process Map:............................................................................................................................................11

Analysis of Quality Control issues :.......................................................................................................12

Analysis of Demand Forecasting............................................................................................................12

Operational Problem:..............................................................................................................................13

Recommendation:....................................................................................................................................14

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 Brief Description of the Business

Shah Cement Industries Ltd. has been the main concrete brand of Bangladesh for more than 15

years. It is a worry of Abul Khair Group, one of the biggest gathering of organizations in our

nation. Shah Cement began its voyage on the March 2002 with a view to contribute towards

building better homes and framework, enhancing personal satisfaction crosswise over

Bangladesh. Bringing world's most mechanically propelled bond items to the doorsteps of all

Bangladeshi's involves pride to us. Shah Cement Industries Ltd. is the biggest bond creating

plant in Bangladesh, with a limit of 6.05 million metric tons for every yearly. The plant is

arranged at Muktarpur, Munshigonj, in the land convergence of two streams Shitolokkha and

Dhaleshwari. The mechanized concrete plant is transcendently fueled by German innovation to

guarantee the most noteworthy nature of yield. Shah Cement Plant is furnished with both

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inbound and outbound strategic containing own vessels, tremendous number of cover fleets,

canal boats and mass bearers and travel blender trucks for Ready-Mix solid supply in the

commercial center in the nick of time. Its own sacking plant is one of the biggest in this locale

equipped for delivering 3 lac packs for every day controlled by Hi-tech Star wait hardware from

Austria. To guarantee continuous power supply nonstop, Shah Cement has claim control plant of

17-megawatt limit.

Shah Cement Ind. Ltd. is the main bond organization that figures in the rundown of Consumer

Prestigious Brands of Bangladesh. To furnish client with the best quality solid, Shah Cement has

its own blending plant, which is outfitted with current PLC-based PC controlled program. Shah

Cement's endeavors in presenting Ready Mixed Concrete combined with the advancement of

mass bond taking care of offices have been in charge of rethinking the pace and nature of

development movement in metropolitan urban areas and in mega infrastructure projects.

Shah Cement Vision Statement:

Strengthen the leadership building better homes & infrastructures in improving quality of life

across Bangladesh. As the company of choice for thousands of our valued customers, we are

fully aware of the trust and responsibility they have entrusted upon us. We are devoted to

realizing the aspirations, dreams, and hopes of our esteemed customers. As a Responsible

entrepreneur we provide ways to make that aspiration focused and doable by delighting our

customers and engaging with society responsibly.

Shah Cement Mission Statement:

-Be the trusted partner in providing solutions through innovation and sustainable practices.

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-Create a healthy and safe environment for all stakeholders

-World class production quality

-Achieving the ultimate goal of complete customer satisfaction

-Being seen as the best employer

Analysis of Production Strategies:

We can classify the production into 5main phases. The phases are explained below:

1stphase: Clinkers directly come from Indonesia by the company owned ships to Chittagong

port. Then they depart for the factory by smaller vessels. They are then transferred to the Sylos

(Reservation Area) by the fast working cranes. Shah Cement imported those cranes from

Germany.

2ndphase: The clinkers are then inserted into polycoms for breaking them into smaller particles.

The polycom technology is only used in Shah Cement plant in our country. They are given a

smaller shape before breaking them into minute particles.

3rdphase: The smaller raw materials are then inserted into cement mills for breaking them into

minute particles. Clinker, gypsum, flays and limestone are broken into minute particles and

mixed together in cement mills, the end mixture end product is cement. There are 3 cement mills

in Shah Cement factory and all of them are imported from Germany.

4thphase: The big particles get separated and the cleaned cement then enters into the cement

silos.

5th phase: When the cements are packed then they are transferred to the lorries/trailers and they

are then ready to deliver.

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Special Notes:

1. They have the capability of producing 1,80,000 cement bags daily.

2. They have their own ships to carry raw materials from Indonesia to Bangladesh.

3. They can transfer the product by road or by river vessels within the country.

4. Shah Cement has their own cement bag plant which is the largest bag plant of south Asia.

5. They have their own power plant so that the production doesn’t get hampered.

6. They have the highest number of self-owned Lorries and vessels.

7. Shah cement has lab testing capability every hour.

Analysis of Shah Cement’s Facility Layout:

A system that mentions the configuration of work headquarters, department and equipment with

an individual movement of work is known as a Layout or Arrangement. Every manufacturing

enterprise has facility layouts. The purposes of facility layouts are in the following below:

-facilitate the work flow, material flow and information

-maximize the profits

-simplify the manufacturing procedure

-maintain high turnover in-process inventory

-decrease material handling cost

-effective use of workers, equipment and position

-minimize unnecessary moving of materials, equipment and workers

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-reduce overall production time

-maintain flexibility of arrangements and operations

-reduce investment in equipment

-make effective utilization of cubic space

Shah cement company consistently rising the use of raw materials, fuels, alternative energies etc.

Shah Cement Company follows combination of both layout which means some activities or

works are done by following products layout and some works or activities are completed by

process layout. Combination layout is a combined of two layout:

a) Product layout

b) Process layout

By following combination layout Shah Cement takes the advantages of both types of layout. In

combination layout some activities are performed by product layout and some of works are

observed by following process layout. In shah cement, machinery are placed in a process layout

and process layout arranged in order to manufacture cements. In the product layout, repetitive

processing and continuous process is followed which maintain highly standardized of cement.

The tasks hold down high standard and high quality. The requirement of the facility of

equipment is slight but highly standardized and the factory doesn’t feel need to recruit high skill

of workers. In shah cement company there is minor variation of cement indeed. This product

layout included to the production line and the meeting line. Shah cement applies product layout

in some activities to attain a big advantage which is, high rate of output and low unit cost. On the

other hand, process layout included with the requirements of varied process. In that layout the

company feel the need to hire high skilled of employers or semiskilled of workers. Shah cement

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use this process layout in some tasks to attain the general-purpose equipment which is less costly

and this layout is very easy to use. Individual plans of incentive can be used in this process

layout. The point is to be marked if there is a variety of sizes of cement, the sequences of

functions stays same. Mainly shah cement use the process layout for raw materials formulation

and it prepares the raw material by:

-grinding, crushing and mixed of raw materials (clay, limestone, iron-ore, bauxite).

Clay

Grinding
Lime st

Mixed raw
Iron-
Crushing material ore

Bauxite

Crushing is used in a raw material process for the high quality. The raw material called clinker

also used in the process to manufacture cement. There is another material of raw named gypsum

which is subtract to the flaming cement clinker. It is used for regulating the fixing time during

grinding. When all the raw materials are crushed and grinded, they finely place together in a raw

mill and mix the raw materials which is called raw mix. Clinker is produced by the burning of

raw mix. After the preparation of raw materials it is altered into the raw meal which is mixed of

various types to raw material to manufacture the cement. It does pre-heating, pre-burn, burning

for the transformation into clinker. Then the clinker should be cool to manufacture cements in

the production process. These task are occurred by the product layout. Shah cement also use the

product layout in packaging of cement, dispatching the operations by using trucks or other
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transport such as railway or sea way. Sometimes shah cement use fixed-position layout if the kiln

of the cement needs to be amended.

By the analysis of shah cement layout, it is obvious that shah cement applies the combination of

process layout and product layout most to run the operations of manufacturing cements and

sometimes apply fixed-position layout if there is any requirement to complete the operations.

Production Process:

Quality is essential at every stage of the production. The most crucial part of the business is the

Production process. If quality of product is not good and packaging is not well maintained, there

Are chances that the consumers may not be interested in buying the product. Shah Cement

Company producing cement by using raw materials, limestone silica aluminate and iron. The

cement manufacturing process is a Dry process. As a result, raw materials are mixed with 30-40

percent water during grinding form well mixed slurry. This wet process is advantageous due to

the increased compatibility with wet climates and more uniform blending of raw materials prior

to the kiln, along with lower kiln dusted missions. Clink is a furnace or oven for burning, baking,

or drying something. Cement makers need integrated process control systems that can improve

plant-wide efficiency and productivity.

Raw Material:

The first step in the manufacture of Shah Cement is to combine a variety of raw

Ingredients so that the resulting cement will have the desired chemical composition.

These ingredients are ground into small particles to make them more reactive, blended together.

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Then the resulting raw mix is fed into a cement kiln which heats them to extremely high

Temperatures. Since the final composition and properties of cement are specified within rather

Strict bounds, it might be supposed that the requirements for the raw mix would be similarly

Strict. As it turns out, this is not the case. While it is important to have the correct proportions

Of calcium, silicon, aluminum, and iron, the overall chemical composition and structure of the

Individual raw ingredients can vary considerably. The reason for this is that at the very high

Temperatures in the kiln, many chemical components in the raw ingredients are burned off

And replaced with oxygen from the air.

The ingredients listed on top of embrace each naturally occurring materials such as rock

And clay, and industrial byproduct materials like slag and ash. From Table it may

Seem as if simply concerning any material that contains one of the main cement elements will be

tossed into the kiln, however this is not quite true. Materials that contain a lot of than minor

Amounts of metallic elements such as magnesium, sodium, potassium, strontium, and

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Numerous serious metals cannot be used, as these won't burn off within the kiln and will

Negatively have an effect on the cement. Another thought is that the reactivity, that may be a

Operate of each the chemical structure and also the fineness. Clays are ideal as a result of they're

Product of fine particles already and so need very little process before use, and are the foremost

Common supply of silica and alumina. Metallic element is most usually obtained from quarried

Rock, significantly limestone that should be crushed and ground before coming into the kiln. The

Most readily abundant source of silica is quartz, however pure quartz is incredibly unreactive

Even at the utmost kiln temperature and can't be used.

Suspension preheaters and claimers

The chemical reactions that occur in the dehydration and calcination zones are endothermic,

Meaning that a continuous input of energy to each of the particles of the raw mix is required to

Complete the reaction. When the raw mix is piled up inside a standard rotary kiln, the rate of

Reaction is limited by the rate at which heat can be transferred into a large mass of particles. To

Make this process more efficient, suspension preheaters are used in modern cement plants to

Replace the cooler upper end of the rotary kiln

Grinding and the addition of gypsum

Once the nodules of cement clinker have cooled, they are ground back into a fine powder in

A large grinding mill. At the same time, a small amount of calcium sulfate such as gypsum is

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Blended into the cement. The calcium sulfate is added to control the rate of early reaction

Of the cement. At this point the manufacturing process is complete and the cement is ready to be

Bagged or transported in bulk away from the plant.

Operation Process:

So in the operation process first of limestone clay and others raw materials goes for crushes and

Mixing and blending, after that the mixture goes for dry process and then it goes for pre-heater

Phase. Completing the pre-heater phase then the mixture goes for rotary kiln. Then the mixture

Kept to dry place for cooling and then cooling the mixture it goes to clinker storage for final

Grinding and then it is ready for packaging and shipping.

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Process Map:

We all know that a process is an organized set of activities that change inputs and a process map

visually defines the flow of activities of a process. A process flow can be well defined as the

order and collaborations of related process steps, activities or tasks that make up an individual

process, from beginning to end. We described here the process map of the Shah Cement. The

map includes all the processes involving from the receiving the raw materials to produce the

finished goods and deliver it to their customers. The process map is illustrated in the next page.

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Analysis of Quality Control issues:

Quality for a company is an important element. It refers to the perception of the degree to which

a product meets the customers’ expectations. Shah Cement Company is very conscious about the

quality of their products. The Company checks the quality of their cements starting from the raw

materials to the finished goods. Every stage has different kind of quality inspection. Each work

station has fixed employees trained to detect faults. The company believes each of their workers

does their best to ensure quality and customer satisfaction

Analysis of Demand Forecasting:

Demand is the major concern for a business. If it is not analyzed correctly, supply can be delayed

that can lead losing consumer. On the other hand having too much inventory can lead to more

holding cost and unutilized assets. So, forecasting the demand is important for a business.

Demand forecasting is a method to predict the future demand based on past and present data and

most commonly by analysis of trends. For predicting the demand, normally Cement Company

uses judgmental forecasting method which is incorporate intuitive judgment, opinions and

subjective probability estimates.

On the basis of this method they take the last week sale data from the sales force and analyze it,

where they find the potential future demand. For example, on an average 1000 packets of

cements were sold last week so based on that they will produce 1000 packets for the next week.

Inventory: The Company maintains a safety stock for the coming days just to be rest assured if

any machine or any other problems occur which might affect their production.

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Operational problem:

High production cost: For shah cement their production cost is little bit high. So the price of the

scan cements automatically getting high.

Few distributions: The factory has only few distribution lines or channels for their product. So

they face some problem in terms of distributing.

Only one production line: They don’t have variety of product line.

Highly priced product: Cooperative the price of scan cement is little bit expensive than other

cement. So sometimes consumer don’t want to purchase.

Delivery cost: the delivery cost of shah cement is also little bit high.

Less trained worker: Few workers are not fully trained. So it is a problem for shah cement to

maintain the product quality.

Recommendation:

Training for operation’s management should be conducted. Training on workers should be

improved to increase utilization of their inputs, they can introduce trainings on supply chain

management. The employees and the authorities of the department are likely to face problems

which eventually results to some mismanagement. We think this can be solved if either of the

two recommended options is taken into consideration. First of all, the people responsible for the

HR department should arrange small training sessions for all their employees working in their

corporate office so that all of them can have a better understanding of how the department

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functions. This would also give them an opportunity to clear out their queries and suggest new

ideas for the department. The company can also invite experienced HR personals especially

those who have been involved with the cement industry to conduct these training sessions. The

chances of an experienced person in the field of HR having the ability of comprehending and

managing the situation in a better way and to provide useful advices is more likely.

Bibliography:

Shah Cement. (2002, March 01). Retrieved from Shah Cement: https://www.shahcement.com/

Shah Cement AKS Cup Golf Tournament begins in city . (2018, December 07). Retrieved from

United News Of Bangladesh: https://unb.com.bd/category/Sports/shah-cement-aks-cup-

golf-tournament-begins-in-city/7973

Shah Cement awarded 'Superbrand'. (2008, September 02). Retrieved from The Daily Star:

https://www.thedailystar.net/news/business/shah-cement-best-brand-in-bangladesh-

1628035

Shah Cement Factory. (2010, July 10). Retrieved from Assosiated Builders Corporation LTD:

http://con.abcgroup.com.bd/portfolio/shah-cement-factory/

Shah Cement Ind. Ltd. (n.d.). Retrieved from BD Compass: https://bd.kompass.com/c/shah-

cement-ind-ltd/bd01828/

shah cement ready contrete rate per truck in bd. (n.d.). Retrieved from Team Jacob:

https://www.teamjacobheeres.nl/zinc/38751/shah-cement-ready-contrete-rate-per-truck-

in-bd.html

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Shah: The highest selling cement in Bangladesh. (2016, February 14). Retrieved from The New

Nation: http://thedailynewnation.com/news/83712/shah-the-highest-selling-cement-in-

bangladesh.html

Sikander, M. H. (2011, September 05). Shah Cement Ltd. Bangladesh: not just a pioneer in

Cement Industry! Retrieved from E-Crane Equilibrium: https://www.e-crane.com/shah-

cement-ltd-bangladesh-just-pioneer-cement-industry/

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