Course: Mgt314

Section: 14

Date of submission: April 15, 2017

Report: Production & Operation Management of Shinepukur Ceramics.

Submitted to:

Shaila Jahan Mona (JMS)

North South University

Submitted by:

NAME I.D
Ahmed Miraz Uddin 1321151650
Farid Hossain Shuvo 1230775030
Srabani Debnath 1320165030
Junayed Bin Islam 1410403630
Shishir Kumar Singha 1311090630

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 LETTER OF TRANSMITTAL

15 April, 2017

Shila Jahan Mona

Lecturer

Department of Management

School of Business and Economics

North South University

Dear Madam,

With due respect, we are here to submit the following report on “Shinepukur Ceramics”
according to the instructions given by you.

After going to Shinepukur ceramics showrooms in Dhaka and doing online research on
Shinepukur Ceramics, we have been quite successful in collecting necessary background
information about Shinepukur Ceramics. A survey among the Shinepukur Ceramics users also
helped us to understand the concepts. The following report is the result of our finding and efforts.

We are grateful to you for your guidance and kind co-operation at every step of our endeavor on
this report.

Sincerely yours

Farid Hossain Shuvo

Ahmed Miraz Uddin

Srabani Debnath

Junayed Bin Islam

Shishir Kumar Singha

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 Acknowledgement

First of all we would like to thank almighty Allah. Then we would like to thank our

honorable course coordinator Shaila Jahan Mona. She tried hard to teach us

operation management, though she got married this semester. Her inspiration was

really helpful for us and she also guided us to complete the project on time.

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 Executive Summary

Through this project we tried to show how production process really works. Every

company implements theoretical aspects in production process. Through this

project we tried to show how production managers implement these theoretical

aspects in real life. So we chose Shinepukur ceramics which is a concern of

Beximco. We tried to monitor their production process and gather as much as

relevant information. We tried to analyze their problem and also tried to know how

they solved the problems.

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 Table of Content:

Topics Page no.

Company Details 6
Operation & Production 8
Business Facility Layout 10
Production & operation Management concept 13
Process Map 15
Quality Control issues 17
Operational Problem 18
Demand Forecasting 19
Recommendation 21
Limitations 22
Reference 23

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 SHINEPUKUR CERAMICS LIMITED

Shinepukur Ceramics Limited (SCL) is a member of BEXIMCO Group which is the largest

private sector business company in Bangladesh. BEXIMCO Group’s operations and investments

across a wide range of industries including Textiles, Pharmaceuticals, Trading, Ceramics,

Information and Communication Technologies, Media, Marine food, Real Estate Development,

Hospitality, Construction, Aviation, Financial services and Energy. Over 48,000 people

worldwide in the permanent payroll, have over 300,000 shareholders.

Shinepukur Ceramics Ltd was started journey from 1997. It was registered in Bangladesh in

1997 and the plants were commissioned in 1998. Shinepukur ceramics ltd is located in the

BEIXMCO Industrial Park, near Dhaka Export Processing zone (DEPZ), 40 km from Dhaka

city. Shinepukur ceramics was started commercial production of Porcelain Tableware and Bone

China. Commercial production of Porcelain Tableware started in April 1999 and Bone China

started in November 1999. About 10,000 Pieces of high quality Bone China and 60,000 Pieces of

top class Porcelain Tableware are produced at Shinepukur ceramics per day, that is about 3

million pieces of Bone China and 18 million pieces of Porcelain Tableware are produced at SCL

per year. The Machineries of the unit II have been sourced from Germany and Kilns from

Takasago, Japan.

Shinepukur is the leading Bone China and Porcelain Tableware Manufacturer and Exporter from

Bangladesh. Shinepukur ceramics produces world class Bone China. They are using the top

quality raw-materials and ingredients. Shinepukur sourced by highly reputed Manufactures from

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all corners of the Globe. Shinepukur offers superb range of Bone China, Plain Porcelain, Ivory

China and High Alumina tableware to cater for all different market segments.

Shinepukur is now the pioneer company in ceramic industry. Currently they are operating their

businesses all over the country through dealership. They are not only doing their business in our

country, they are one of the largest exporters of ceramic in our country.

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 Operation & Production

Shinepukur ceramics produces two types of products, one is porcelain and another is Bone
China. Porcelain has four variations, Plain Porcelain, Ivory Porcelain, Satin China and High
Alumina Porcelain.

Shinepukur Ceramics Ltd

Tableware

Bone China Porcelain

Plain Ivory Satin High Alumina

nnnn
n

Bone China: shinepukur ceramics was the first company in Bangladesh to introduce Bone China
technology and products. Shinepukur ceramics produces world class Bone China, using top
quality raw-materials.

Porcelain: Shinepukur porcelain has the finest features and bright white body. Porcelain’s made
from highest quality raw materials. Porcelain has four types:

Plain Porcelain: Plain Porcelain contains 18% Alumina in the body. It is comparable in quality
to the best porcelain.

Ivory China: Contains 23% Alumina in the body which similar weight to porcelain Body and
color is creamy with translucency similar to Porcelain.

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High Alumina Porcelain: This product has no translucency and made especially for hospitality
and food service industry.It is contains 28% Alumina in the Body.

Satin China: A Shinepukur own research product which is the white appearance. It’s contains
30% Alumina in the Body to make this product 70% stronger than Porcelain.

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 Facility Layout

Shinepukur Ceramics Limited is situated in 25 acres land of Beximco Industrial Park. Three

thousand working day and night in this organization. It is a U shaped assembly line work station.

According to them, it is the most flexible way to rearrange the resource from a process layout in

a cost effective situation. It is helping them to maximizing the effectiveness of the production

process. Their assembly line production layout enables to maintain relation between Raw

materials, equipment, manpower and final product at a minimum cost under comfortable

environment.

To ensure the smooth work facility they have main office and maintenance office just beside the

manufacture factory. All kind of environmental factor are present to ensure the workers to

perform their duty.

Shinepukur Ceramics Limited have five divisions

 Service

 R&D

 Distribution

 Electrical

 Mechanical

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 Preparation Section Biscuit Firing Section Free Glace Section

Design Section Selection Section

Lead checking Section

Figure: U shaped assembly line facility layout

In our observation, Shinepukur work station is an assembly line layout where every workstation

are well connected. It takes “Smooth Flow” between working stations because of its U shaped

layout. This helps us to determine which layout they are following in production and the factory

falls under product layout. Because of the demand, they always operate assembly line with a

large number of repetitive processing which is a fact. It falls under the U shaped where the whole

output produce in a certain workflow.

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U shaped layout is one of the best layout for operation. It is another modified form of straight

line layout where it takes half of the length of a straight production line. Teamwork and

communication are the main part of this layout. The workers must maintain these to conduct this

production layout. It has an advantage which is if there is any problem in the product then it is

easily can be removed or terminated. As it is cross checked by multiple employees, the

percentage of defected product is lower than any other layout. It is more controlled in material

handling. As they have no communication factor, it is the best option for production.

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 Operation Management of Shinepukur Ceramics

Operation management refers to the administration of business practices to create the highest

level of efficiency possible within an organization. It is concerned with converting materials and

labor into goods and services as efficiently as possible to maximize the profit of an organization.

Type of Process

For production of different ceramics items Shinepukur uses different workstations where the

employees are inclined to do particular tasks continuously. The organization is following

“Assemble line/ repetitive” process type. For example, a worker is responsible for sorting and

grading the products after those are being produced until his/her shift is over.

Types of Layout

Shinepukur follows standardized process to keep up smooth production. Shinepukur work station

is an assembly line layout where every workstation are well connected. It takes “Smooth Flow”

between working stations because of its U shaped layout. This helps us to determine which

layout they are following in production and the factory falls under product layout.

Forecasting

Forecasting of demands is found out with the help of judgmental analysis and past sales trends

using the information collected from selling and marketing department. Shinepukur has current

export market in USA, Canada, UK, Germany, Norway etc. Forecasting is done every month at a

specific time. Also with the record of previous sales and affirmed buyers the customer demand is

forecasted and production is considered with that.

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Quality Assurance

Complying with the reputation, Shinepukur is very much concentrated on keeping and assuring

its quality. It has conference accommodation, inspection rooms, stopover establishment and

several other facilities for its buyers and their representatives. Environment protection practices

have been set up here.

Supply Chain

Shinepukur exports all its raw materials from abroad and it maintains quality strictly while

choosing raw materials. In this case shinepukur keeps very high global standard.

Types of Inventories

As a manufacturer, Shinepukur produces tablewares in different ingredients and the products are

like plates, cups, dining sets, mugs etc. Finished goods are stored in the inventories to meet the

demand of the customers. Shinepukur always makes sure that enough products are in the

inventory to satisfy the customer demands. That is why cost of production increases a bit.

Bottleneck

After done with the production, the products are held on for a period to be checked and graded

by professionals. This is the bottleneck of the business. Since Shinepukur holds a high position

in ceramic production, they ensure this part of the business very efficiently.

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 Process Map:
For production Shinepukur ceramics uses raw material from specialized overseas supplier. But

they are interested to share information regarding their suppliers. Raw materials are then

processed to make good quality slick. Modern machinery of MINO, SKK of Japan is used to

shape slicks into tableware. Then newly shaped tableware’s are passed through biscuit firing

process and here Shinepukur uses German technology to make this tableware hard. The goods

are passed through cadmium free glazing process. Products are then sent for short quality check.

Defect products are destroyed or sold in domestic market. Qualified products are then sent in

designing studio for designing. Shinepukur have their own designer working continuously to

make the tableware look beautiful. Tableware’s are then designed by using German machinery.

Then the designed tableware’s are again put into glazing process at 800 degree Celsius to make

the design permanent.

For the last time goods are passed through long quality check. Products are checked according to

ISO 9001:2008. Qualified are passed to packaging industry for packaging. Defects are sold in

domestic market through dealers. In the packaging industry products are packed according to

international standard.

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 Raw Materials

Quality Slick

Shaping

Biscuit firing

Glazing

Defects are
Quality check
destroyed or sold
for export in domestic market

Export Quality

Design Studio

Glazing
Defects are sold
Export
Quality check in domestic
Quality market

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Finished
Packaging Goods
 Quality Control:

For Shinepukur Ceramics quality control is an important factor. Their main target is to grab

international market. To grab international market products need to of international quality. In

the production process we can see that the product is passed through quality check for 2 times.

First quality check is short but the final quality check is long. All this steps are followed to

produce accurate quality goods.

Top of the line testing and Quality control in house laboratory, operated by highly qualified and

skilled Technicians. Laboratory has 36 types of quality check. Few listed below;

no. Types of test

 Tests for Microwave and Dishwasher safety

1

 Tests for Acid and Detergent Resistance

2

Testing on Heavy Metal Release (compliance with Lead & Cadmium requirements of
USFDA & California State Prop 65)
3
4  Whiteness color measurement
5  Tests on Thermal Shock
6  Strength (hardness) Tests
7  Hot Water Tests
8  Chipping Tests etc.

Shinepukur assures quality by engaging QC inspector in every production section. Checks the

running products in every stage with that of reference sample. Using Lead and Cadmium free

colors as per the guideline of USFDA & California State Proposition 65.

Different QC steps make the Shinepuker ceramics move ahead and different from other brands.

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 Operational issues and problems:

Operational issues and problems render a business less profitable. They drain business energy

and resources. They affect operational performance, impact strategy execution and are anti-

growth. SHINE PUKUR had developed a framework, to help businesses identify and understand

operational issues and problems.

It helps the management to learn from the horse’s mouth on operational issues hurting the

company and also what is causing them. It further improves the understanding by throwing light

on the complexity involved in resolving each type of operational issue and problem. It also helps

in analyzing perceptional differences across the hierarchy and between departments when it

comes to operational issues and problems. It also throws light on the strength of core pillars of a

business viz., Business strategy, Technology & Infrastructure, Leadership & management,

Systems and processes, and Execution of work.

A typical OiP-M assignment of Shine pukur would involve following steps,

 OiP-M orientation program,

 OiP-M Survey,

 Analysis of results,

 OiP-M report,

 Issues and problems existing in the company and their causes,

 Degree of impact of each issue and their complexity level,

 Weak business pillars causing OiPs,

 Recommendations to address operational issues and problem,

 Implementing OiP-M report recommendations,

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 Demand forecasting:

Demand forecasting is a well-studied topic, and most techniques used in practice today are

relatively mature. There are many commercial software packages which have been used by

SHINE PUKUR LTD for forecasting, ranging from stand-alone, specialized packages to

modules in enterprise management systems. One would be inclined to conclude that there is no

shortage of commercial software for demand forecasting. On the other hand, now well-known

paradigms of just-in-time manufacturing , time-based competition , quick response

manufacturing and more recently sense-and-respond propose speed and responsiveness as a

major competitive advantage, and hence a goal for manufacturing organizations. To grab

international market and to control quality under these frameworks, SHINE PUKUR can rely

much less on a plan that is based on a demand forecast.

With a mature technology base, plenty of commercial software packages and a seemingly less

critical role SHINE PUKUR, is demand forecasting then a “solved problem”? Their experience

has shown quite the opposite. SHINE PUKUR explore this issue by first discussing the business

environment today, and then the new opportunities and challenges to demand forecasting

presented by this new environment.

The new opportunities and challenges are related to the abundance of information today and the

intelligent choice and use of it. For each of several categories of information, which describe the

nature of the data, the challenges in using them in forecasting, and offer some of our experiences

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whenever applicable. Finally, SHINE PUKUR emphasize that forecasting is only a means to an

end. The revenue and profit perspective is important in setting priorities.

New Opportunities and Challenges in Demand Forecasting

1. Information on demand throughput

2. Information on selling price and product promotion.

3. Information on product life cycle.

4. Information on the marketplace.

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 Recommendations

 They only produce tableware, product line should be increased.

 They should improvise their product quality to expand

international market.

 They should reduce wastage as they have to sale them in domestic

market at half price.

 They should bring design in their products.

 Entertainment purpose for employees since their job is dull and

monotonous.

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 Limitations:

 We were unable to visit Shinepukur factory for company limitation.

 We were able to interview on of the Shinepukur retailer but unable to

interview the production manager as he was busy.

 Time constrain.

 Pressure from other courses.

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 Reference

http://www.shinepukur.com/

http://www.shinepukur.com/index.php?p=about_rttf

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