ARMY INSTITUTE OF BUSINESS ADMINISTRATION

Course Name: Project Work

Course Code: PRO 8509

A Consultancy Report on

ALIM INDUSTRIES LIMITED - Production

Submitted by:

Mr. Md. Nahid Hasan

Group Member of MBA10
Program: MBA Batch: 10
ID: 201019002

Submitted to:

Mr. Golam Morshed Shahriar Tanim

Course Supervisor

Submission Date:
12th March 2021
 Letter of Transmittal
12th March 2021

Mr. Golam Morshed Shahriar Tanim

Lecturer
Army Institute of Business Administration
Jalalabad Cantonment, Sylhet.

Subject: Submission of Consultancy Report on Alim Industries Limited.

Respected Sir,
With enormous inclination, I am submitting my individual assessment report about “Consultancy
Report on Alim Industries Limited: Production” which I had selected after the discussion with
my group members.
The report contains about discussing overall production unit of Alim Industries Limited. Due to
some constraints, I could not manage all financial activities of Alim Industries Limited. To fulfill
the requirement of a report, I had to conduct both primary researches along with my learning
materials that I have been taught during my MBA period.
Due to time constraints, I have tried as much as possible to avoid giving any vague information. If
such arises, I am prepared to clarify them.
I would like to thank you for giving me such an opportunity to prepare this report which helps me
to increase my theoretical knowledge that will be a treasure for forthcoming.
Sincerely yours,

………………..
Mr. Md. Nahid Hasan
ID: 201019002
Group: MBA10
Program: MBA
Army Institute of Business Administration

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 Acknowledgement
All praise goes to the Almighty Allah for giving me the strength and patience in order to complete
this project report.
At the beginning, I would like to honor my sincere gratitude to my supervisors Mr. Golam Morshed
Shahriar Tanim, Mr. Md. Ali Ashraf and Mr. Chinmoy Das Gupta who have supported me
throughout this project work with their patience and knowledge whilst allowing me the opportunity
to work in.
I express my greatest honor to Mr. Alimul Ahsan Chowdhury, Managing Director of Alim
Industries Limited, for his kind permission to allow me for preparing a consultancy report on their
organization.
I would like to thank Mr. Shahriar Hasan Sourov, Executive in Human Resource Department of
Alim Industries Limited, for providing information of Alim Industries Limited.
I am very thankful to the whole team member of Alim Industries Limited for their cooperation and
guidance. Without this, I could not have successfully conduct this project work.

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 Declaration
I am Md. Nahid Hasan, ID: 201019002 the student of MBA Program of Army Institution of
Business Administration, Sylhet hereby I declare that the project work titled “Consultancy
Report on Alim Industries Limited - Production” is prepared under the intensive supervision
and guidance of Mr. Golam Morshed Shahriar Tanim, Lecturer of Army Institute of Business
Administration.
I also declare that the project report is prepared for academic purpose only. This repost is not
submitted by others.

Sincerely yours,

---------------------------
Mr. Md. Nahid Hasan
ID: 201019002
MBA 10
Army Institute of Business Administration, Sylhet

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 Executive Summary
As a report, work paper is to be on the observation of the present situation of Alim Industries
Limited. Before developing a research paper on this topic, I have collected all available
information regarding this topic.
In the first chapter of this report, there is an introduction part that includes background, objectives,
methodology and limitation regarding the study. In the next chapter, I tried to figure out Alim
Industries Limited’s present situation in the agricultural machinery industry, its production
capacity, logistics system, inventory management and so on.
After that, I have collected relevant information, analyzed them, tried to find problems and
suggested some solution regarding the findings.

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 Table of Content
Chapter Particular Page
Chapter One: 1.1 Background of the Study 1
Introduction 1.2 Objective of the Study 1
(1) 1.3 Methodology of the Study 1
1.4 Limitation of the Study 1
2.1 Production Unit Location 2
2.2 Production Capacity 2
2.3 Storage Capacity 2
Chapter Two: 2.4 Manufacturing Product Per Unit 2
Situational Analysis 2.5 Order Process 2–3
(2 – 5) 2.6 Quality Assurance 3–4
2.7 Logistics System 4
2.8 Design and Technical Support 4
2.9 Production Cost 4–5
Chapter Three: Findings 6
Chapter Four: Recommendation 7
Conclusion 8
 Chapter One: Introduction
1.1 Background of the Study
The sequence of the MBA program has been arranged in such a manner so that the knowledge and
skill of the students may be transmitted from foundation level to practical level. With this view
point this seminar report has been prepared for the partial fulfillment of the requirements for the
MBA program of Army Institute of Business Administration.
As part of practical orientation program, I prepared this seminar paper on Alim Industries Limited.
This report has been made to observe Alim Industries Limited’s present production status &
prospects.
1.2 Objective of the Study
Objective guides the thinking of any set of operation either directly or indirectly. Research is
meaningless without a specific objective or a set of objectives as it cannot be performed without
it. My main focus is on Alim Industries Limited’s production operation and our objectives of the
study are to-
• To identify Alim Industries Limited’s various production related capabilities.
• To measure Alim Industries Limited’s readiness to response towards any change or shifting
in the industry.
• To detect opportunities of Alim Industries Limited from its production unit’s perspective.
1.3 Methodology of the Study
It is based on primary data. I have personally visited with my group in production unit of Alim
Industries Limited and interviewed people working there including production manager. The data
I have collected is primary data and provided by AIL’s production unit itself.
1.4 Limitation of the Study
In order to prepare this report, there are some constraints that I have faced:
A. Time was too short to prepare this report.
B. It was unavailable for me to study similar production facilities of other companies of the
industry because of access permission.

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 Chapter Two: Situational Analysis
2.1 Production Unit Location
The production unit of Alim Industries Limited is located at BSCIC Industrial Estate, Gotatikor,
Kodomtoli in Sylhet. The land is owned by Bangladesh Small and Cottage Industries Corporation
and the land given to Alim Industries Limited as a lease for building their production unit. Each
year, Alim Industries Limited have to pay a certain amount for building their production unit on
it.

2.2 Production Capacity

The total production capacity of Alim Industries Limited is 12000 pieces. It indicates that Alim
Industries Limited can produce 12000 products a year with its available resources.

2.3 Storage Capacity

The storage capacity of Alim Industries Limited is 500 pieces. They can store 6000 pieces of power
tiller a year. On our visiting day, they had stored 220 pieces of power tiller in their warehouse.

2.4 Manufacturing Product Per Month

Alim Industries Limited produces approximately 500 pieces of ALIM Power Tiller every month.
It means that AIL is producing approximately 6000 pieces of power tiller in year.

2.5 Order Process

Order process is the process by receiving product demand, then producing and delivering to
customers. Before delivering the final product to customers, Alim Industries Limited follows some
steps in order to understand the actual demand of the market. Those steps are mentioned below:

Forecast Calculate Raw Requisition Collection of Raw Price Order

Demand Materials Materials Approval Place

Figure: Order Process of Alim Industries Limited

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✓ Forecast Demand: At first, Alim Industries Limited surveys the market for gaining the idea
about how much demand customers have on their products. It is the vital process of predicting
future sales to make business decisions from inventory planning to warehouse.
✓ Calculate Raw Material: After gaining demand of the market in numerical form, Alim
Industries Limited calculates how much raw materials it should have in order to manufacture
those products.
✓ Requisition: If the forecasting and calculation of raw material work properly, production
manager of Alim Industries Limited approves the order and send the letter to manufacturing
unit for collecting raw materials.
✓ Collection of Raw Material: Alim Industries Limited collects its raw materials for local and
foreign sources. AIL has business relation with 19 foreign companies where it collects spare
parts for manufacturing its products. After that, it combines raw materials in production section
and produces the final good.
✓ Price Approve: After the quality inspection of finished good is done, Alim Industries Limited
approves the price of its products based on some conditions such as competitor’s price range,
market value, customer’s purchasing power, government’s regulation etc.
✓ Order Place: When all stages of order process is perfectly done, Alim Industries Limited
places the final order for its products to its customers.

2.6 Quality Assurance

Quality assurance is the part of quality management. It inspects the quality of all stages which is
involved in production. It is done for testing and determining the product whether it is fulfilling
the specification of the final product.
Quality assurance of Alim Industries Limited for the final product is done into four stages. These
are:

Quality Assurance
of AIL

Figure: Quality Assurance of Alim Industries Limited

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✓ Raw Material: This is the first stage of AIL’s quality inspection process. It is a vital step in
this process that helps to understand whether the supplier is meeting the specification that Alim
Industries Limited provided.
✓ Spare Parts: In this stage, Alim Industries Limited inspects its spare parts that are directly
involved for manufacturing its products such power tiller, power reaper etc.
✓ Finished Goods: This is the third stage of AIL’s quality inspection process. Any major defects
could affect the performance of the products. In this part, AIL closely monitors all areas of its
finished goods with its experienced engineers. If they find any defect in finished goods, they
send back those production in spare parts inspection process.
✓ Painting: This is the final steps of quality inspection process. In this stage, engineers of Alim
Industries Limited make sure that the product is free from blistering and peeling which is
caused by formation of an air bubble.

2.7 Logistic System

Logistic System is the part of supply chain management that is conducted for meeting customer’s
needs by planning, managing, storing related information about the product and servicing from
beginning to ending. Logistic Systems of AIL work into two ways. First one is dealer and second
one is customer.
▪ Dealer: Alim Industries Limited has 73+ dealer points across the Bangladesh. Dealers sell
agro-machinery product on behalf of AIL to farmers.
▪ Customer: If the customer wants to buy products of Alim Industries Limited directly, then
they are bound to bear a certain amount of delivery charge for receiving the product. On
the other hand, if the customer purchase above tk.5 lakh, then Alim Industries Limited
delivers the product to the customers house without applying any delivery charge.

2.8 Design and Technical Support

Alim Industries Limited has its own design team. It produces several types of agro-machinery
products which is designed by its team. It also manufactures products with the design provided by
Bangladesh Rice Research Institute (BRRI), Bangladesh Agricultural Research Institute (BARI).
Technical Supports of Alim Industries Limited are providing solution to their customers that
prevent them to from using their product effectively. In addition, they are giving suggestion to
their customer about sustainable agriculture. This team is available 24 hours in week.

2.9 Production Cost

Production Cost of Alim Industries Limited on December 2019 was taka for per ALIM Power
Tiller. Following chart will us how many direct and indirect expenses are involved for
manufacturing ALIM Power Tiller:

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 ALIM Industries Limited
Production Cost of ALIM Power Tiller
For the month ended December 2020
Particular Taka Taka Taka
Direct Materials (500 x 18560) 9280000
Less: Direct Labor (200 x 2600) 520000
Prime Cost 9800000
Add: Selling and Distributive Expense
Advertisement 281250
Utilities 412500
Commission 75000
Packing Charges 93750
Transportation 318750
Painting 131250
Maintenance Cost 337500
Warehouse Lightening 187500
Others 37500 1875000
Total Selling and Distributive Expense
Add: Office and Administrative Expense
Salaries 371000
Office Supplies 53000
Travelling Expense 66250
Communication Expense 132500
Remuneration 132500
Repair and Maintenance 79500
Office Lightening 198750
Utilities 119250
Others 265000 1325000
Total Office and Administration Expense 3200000
Total Cost of Sales 13000000

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 Chapter Three: Findings
After studying the situation of production operation of Alim Industries Limited, there are some
points that I have marked as findings for this report. These are given below:
✓ Alim Industries Limited has been operating its business in BSCIC Industrial Estate since it was
founded in 1990. The land where Alim Industries Limited is running it operation is not owned
by them. Alim Industries Limited has taken it a lease from Bangladesh Small and Cottage
Industry Corporation and the company has to pay certain amount of money along with service
charge (it could be 4.50 taka per square feet) to BSCIC.
✓ Alim Industries Limited has the ability to produce 12000 pieces, whereas it is currently
producing 6000 pieces per year. It means that Alim Industries Limited produces half of its
production capacity.
✓ If I consider that Alim Industries Limited produces 1000 pieces of power tiller every month,
then the production cost will be:
Particular Taka Taka Taka
Direct Materials (1000 x 18560) 18560000
Less: Direct Labor (300 x 2600) 780000
Prime Cost 19340000
Add: Selling and Distributive Expense
Advertisement 281250
Utilities 825000
Commission 150000
Packing Charges 187500
Transportation 637500
Painting 262500
Maintenance Cost 675000
Warehouse Lightening 375000
Others 75000 3468750
Total Selling and Distributive Expense
Add: Office and Administrative Expense
Salaries 371000
Office Supplies 106000
Travelling Expense 66250
Communication Expense 265000
Remuneration 265000
Repair and Maintenance 79500
Office Lightening 397500
Utilities 238500
Others 530000 2318750
Total Office and Administration Expense 5787500
Total Cost of Sales 25127500
The profit of power tiller increases = 26000 – 25127 = 873 Taka that means 3.3%

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 Chapter Four: Recommendation
After completion of my short study on the production situation of Alim Industries Limited, I bring
forward a few humble suggestions to the company.
✓ Alim Industries Limited is producing certain number of power tiller. But, in findings, I have
seen that if Alim Industries meets its production capacity it will increase its profit as well. For
that reason, Alim Industries Limited should acquire more land to meet its production capacity
in order to increase sales volume.

✓ There are some agricultural seasons in Bangladesh in which growing conditions are most
favorable for cultivation of crops. If Alim Industries Limited increases its production level in
this seasonal time, it will help AIL to capture huge number of customers who want to use
modern agriculture equipment.

✓ If Alim Industries changes its strategy and follow to produce maximum output, then it also
needs to increase its storage capacity. Otherwise, AIL will not store its products in its
warehouse.

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Conclusion
It is not easy to come up with any dramatic change for any company in this stage. We know that
Bangladesh is predominately an agriculture country. It is a huge opportunity for manufacturer to
utilize the best possible outcome from agriculture industry. The drawbacks that Alim Industries
Limited has, can be possibly overcome easily. So, it is high time for Alim Industries to emphasize
on acquiring larger market share. Because an advantage which is not utilized properly can turn
into a disadvantage.