INTRODUCTION TO PRODUCT AND OPERATION MANAGEMENT

PROJECT ASSINGMENT
COMPANY NAME: BEXIMCO (RMG)

TOPIC: CONSTRAINT MANAGEMENT

GROUP NAME: INNOVATION
COUSE NO: MGT330
SECTION: 02
SUBMITTED TO: DR. MD KHARSHIDUZZAMAN

SUBMISSION DATE: 07/01/2021

 LETTER OF TRANSMITTAL

January 7, 2021

DR. MD KHARSHIDUZZAMAN

Lecturer School of Business,

Independent University, Bangladesh

Subject: BEXIMCO (RMG) sector constraint management.

Dear Sir,

With due respect, we are the student of MGT330 course, section: 02 and our report
represents the information about the BEXIMCO company. In the report mainly
shows a bit of the company details, upcoming target goal, individual work station
brief, calculate their constraint management and the precedence diagram. We are
looking forward to achieve your kind approval.

We are more than willing to answer any questions regarding this report and clarify
it fully to my understanding. Thank you very much for all your support, which
helped us significantly in preparing this report.

Respectfully,

From the team INNOVATION

Shanta Akter

ID: 1730808
 NAME ID
Khandokar Jahidul Islam 1720006
Sourov Gupto 1731081
Mishwar Abedin Alif 1630398
Shanta Akter 1730808

Group name: INNOVATION

Acknowledgement

Apart from the efforts made by us, the success of any project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express our gratitude
to the people who have been active in the successful ending of this project.

Our first acknowledge goes to the almighty Allah for giving us the patience and courage to finish
this task within its deadline.
Then we would like to show our greatest appreciation to our honorable faculty DR. MD
KHARSHIDUZZAMAN .We feel motivated and encouraged every time we attend his classes.
Without his encouragement and guidance this project would not have materialized.
Although we couldn’t work as a team but still acknowledgments must go to the team members,
who at least help me out to make the project both possible and successful.

The guidance and support received from all the persons who contributed and to this project was
vital for the success of the project. We are grateful for their constant support and help.
 Executive summary

Beximco is one of the largest and established textile companies in Bangladesh from the very
beginning it has invested on the garments sectors. In Bangladesh, RMG industry is one of the
most promising one to developing national growth. Beximco is one of the garments companies
of the Beximco group. Beximco has advanced machineries, skillful workers, and efficient
management teams. Beximco has built up the cost leadership in the market. It is very much
focused in its raw materials and its quality. They always try to provide their products at
reasonable prices. They always provide the better quality output to the customers at more
desirable prices than its competitors. The company has got the cost leadership for a longer
period. The factory is situated at the EPZ, Savar and the head quarter is in the Gazipur. The
Beximco has strong partnership with the world class brand like Wal-Mart, JC Penny, and Target
etc. Beximco is providing them quality products in cheaper prices than its competitors. Thus,
they have a strong sustainable relationship. Moreover, when they do not have any order from the
outside, the factory produces products for “Yellow” which is one of the clothing brands of the
Beximco itself. The RMG industry of Bangladesh will have higher growth and higher
profitability in future. As the Beximco Fashion Limited is producing at its highest operating
capacity, it can increase its line so that it can produce more and earn more profit. Beximco is
financially a solvent company. Though, they deliberately delay on the payment of the labors for
this reason the rise of the strike. For this, it can build bad impress to the foreign buyers about
them and sometimes they loss their contracts. So, to avoid those problems they should pay their
workers in time. And to stop further working unrest within the company itself, it can initiate
effective yet compatible incentive plans and appraisals to make sure that its services are
delivered at optimum and therefore keep the status intact. The competitors of Bangladesh like
India, China, Thailand, Indonesia etc. are getting help from their government to attract the
foreign buyers. So, the Bangladeshi government should take these sorts of action to pull the
foreign buyers. Thus, the RMG sector of the Bangladesh can grow bigger and become global
leader in the garments industry.
 Introduction

BEXIMCO Group is the largest private sector group in Bangladesh. BEXIMCO was founded in the 1970's
by two brothers – Ahmed Sohail Fasihur Rahman and Salman Fazlur Rahman. Since the early days, the
Group has evolved from being primarily a commodities trading company to a leading, diversified group
with a presence in industry sectors that account for nearly 75% of Bangladesh's GDP. BEXIMCO's
corporate mission is "Taking Bangladesh to the world".

As BEXIMCO has grown over the years, the flagship platform now has operations and investments across
a wide range of industries including textiles, pharmaceuticals, PPE, ceramics, real estate development,
construction, trading, marine food, information and communication technologies, media, DTH, financial
services, and energy. The Group sells its products and services in the domestic Bangladesh market as
well as international markets. BEXIMCO is the largest employer in the private sector in Bangladesh and
employs over 70,000 people worldwide.

The BEXIMCO name has now become one of the most recognizable brand names in Bangladesh. It is
synonymous with innovation, trust and quality. The Group consists of four publicly traded and
seventeen privately held companies. The publicly traded companies are Bangladesh Export Import
Company Limited, Beximco Pharmaceuticals Limited, Shinepukur Ceramics Limited and Beximco
Synthetics Limited. The total revenue of the group stands in excess of a Billion US Dollars per year.

BEXIMCO encompasses one of South Asia's largest vertically integrated textile and garment companies.
The Textile division is a fully integrated manufacturer of cotton and polyester blended garments for
men, women and children, both for domestic and export markets. BEXIMCO is also the largest exporter
of pharmaceuticals in Bangladesh with presence in 55 countries. The Pharmaceuticals division
manufactures and sells generic pharmaceutical formulation products, active pharmaceutical ingredients
and intravenous fluids. State-of-the-art manufacturing plants located in the vicinity of Dhaka provide the
Group with a highly cost effective manufacturing base. A majority of its plants are in the BEXIMCO
Industrial Park, a vertically integrated self-contained facility. This facility provides ready access to captive
power generation, water purification, liquid nitrogen, waste water treatment and other key
infrastructure. The Group global clients include some of the world best known brands including BT,
BASF, Chevron, Calvin Klein, H&M, JC Penney, Macys, Zara, UNICEF, Royal Doulton and Villeroy & Boch.
The Group is also the largest ceramics exporter and has an investment in GMG Airlines, the largest
private commercial airline in Bangladesh and in Unique Hotels & Resorts, which owns the Westin Hotel
in Bangladesh.

BEXIMCO upcoming target or focus

Beximco establish a long time ago, it becomes a brand for this time of market industry. After
being continuing business the world face a great pandemic which shut down the whole world
working activity. But things are changing day by day all the government give permission to get
back to start work with the consider of perfect protection sanitation. Beximco also start their
factory work with the proper sanitation. For the pandemic their all the work was totally off in this
time market face some need demand which is have to be full fill by the industries. The current
situation our Bangladesh government set some limitation in worker attendance to reduce the
corona effected chances so being maintain the government law Beximco also sets their worker
level and proper sanitation working environment. For the reason Beximco also has demand from
the market. To fulfill this demand Beximco CEO wants to produce fabrics to meet that need
within a 2 months working amount. So to efficiently produce that demand product they followed
with the constraint management. They also set their every manufacture work station in a line
balancing as so to achieve the desired output rate with smallest number of workstation. And for
the assemble the line regarding with the low number of work force he decided to produce 160
units of ladies kurti per 7 hours shift per week at least the next 2 months. Their operation
manager also sets the working station by their own working elements. Also they make a
precedence diagram so that it is easy to visualize the immediate predecessors better.

Why do we need constraint management?

Because, it helps the plans to be executed on less idle time and as follows:

The focus should be on balancing flow, not on balancing capacity. It will make the Beximco to
reach their outcome they want from the current working ability.

Capacity Maximizing the output and efficiency of every resource may not maximize the
throughput of the entire system. An hour lost at a bottleneck or constrained resource is an hour
lost for the whole system. ̶An hour saved at a no bottleneck resource does not make the system
more productive. Inventory is needed only in front of bottlenecks and in front of assembly and
shipping points. We are going to show one product from Beximco to represent how constraint
management works and how it should be done, avoiding all the constraint. It can help them to
make idle time into a working time so that each and every single moment they can do their work
more efficiently because of the time is very short with a long time frame break so to cover come
this situation they need a proper constraint plan to rectify their work with the low number of
workers.
For manufacturing to preparing kamiz for the customer Beximco sets 3 different work stations or
step each and every work station or step has their own work sector to do. To line balance so that
there is even flow of production from one work station to the next to minimize any delay.

Explanation to each work element:

Beximco has mass production of clothing. The company runs their manufacturing process at
their own factory. Including various steps, it starts from receiving fabrics to packaging and
shipping. We have named each step as specific letter. Let’s explain these steps in the followings_

1. Receiving fabrics and relaxing :

In this “A” process, Company workers receive fabrics from overseas manufacturing
according to their needs. This fabric may come with big bolts of fabrics with cardboard or
sometimes the delivery comes in piles, bags or plastic centre tubes. Supplier sends these
raw materials by ship, putting them in big containers. Workers bring those fabrics at their
warehouse and store them. These fabrics will be placed at the factory during
manufacturing process.
Relaxing comes in the next step after receiving fabrics. The main purpose is to relax and
get the fabrics ready to produce. The main purpose is to relax and get the fabrics ready to
produce. The fabrics do not appear at factory in an exact shape which is necessary for
stretching fabrics. It has to modify to bring in a perfect shape for manufacturing. This
process is done by automated machine. The whole process takes 90 seconds to finish.
2. Form Layout and cutting :
While process “A” is done then, it comes to the next stage “B”. Here workers cut those
fabrics into uniform piles and spread them to enter the cutting process. This spreading is
done by computer- controlled system. The system can automatically detect fabric flaws,
check the slack and assure the correct alignment of each fabric. The machine cut the
fabric based on the fabric type and size of the garments order. Workers decide on the
numbers of piles to spread. Then, they lay the patterns of the fabric on top of the spread
on computerized cutting system. It contains 40 seconds to complete.
3. Fabrics Laying :
 In step “C”, there need certain rules and techniques. It starts from layering the fabrics for
cutting to run production. It is basically a process of unwinding large roll of fabrics into
long to prepare them for cutting each piece of a garment. How much the number of layer
will be that is dictated by the number of garment's intention and the fabric thickness. This
step is done by fabric spreading machine. The process is accounted for 13 seconds.
4. Fabric Marking :
While step “C” is completed then, step “D” can perform their work. This process is
commenced with making patterns symbols. The market planners takes the full-size
patterns then locate them on the marker paper.
The marking paper is a printed paper with symbols to specify the position of each
component and ensure that each piece follows specific grain lines. Workers set pins and
staples on the fabric so that the marker stays in it's exact place. That's how the fabric
Marking is taken to prepare fabric for cutting which consists of 24 seconds.
5. Fabric cutting :
Step “E” comes after finishing step “D”. This is one of the most crucial task . Once the
fabric has been reaped, there is no way of changing that cut. The sewing process is highly
influenced by cutting. However, All the marking fabrics are reaped by sharp cutting tools
in following the mark. This process needs 28 seconds to be done.
6. Embroidering and Screen Printing :
Step “F” can start their work while step “E” is done. In this step, Embroidery and Screen
Printing have to perform by machines where need to input the design and the machine
will put design exactly following the given design. The colour of design also needs to be
specified. However, the machine can embroider up to six pieces at a time. The system
ensures that we get our products faster than we would otherwise. In addition, the screen
printing process applies paint-based graphics on the garments. These printing machines
use presses and textile dryers. 50 seconds are needed to finish this process.
7. Sewing :
After finishing the previous step, Step”G” comes where all the cutting fabrics have to
send for sewing or stitching. The process is basically done by workers on the sewing
machine. Each worker is assigned to stitch the different part of clothes. For instance, if
one worker stitches the neck part, they pass it to the next worker to stitch the sleeves. The
 rule optimizes the time to finish sewing a complete garment. It takes 25 seconds to
process.
8. Checking and Laundry :
When it is done by sewing, it sends to the step “H”. All the sewing clothes have been
checked to find out that is there any spot or comedic flaw or not. This procedure is
strictly maintained just to minimize the rejection of products by customers and does it
meet the quality standard. After having done with checking products, they are transferred
to the laundry. It needs the highest amount of time by taking 120 seconds.
9. Fussing and Pressing :
Step “I” comes after completing step “H”. It consists two significant steps that ensure the
appearance of the garments. While fussing puts the foundation. Pressing gives the final
seal on the garments. There are some tools, including Hand irons with vacuum press
table, scissors press, carousel machines and stream dolly are the machinery which are
performed to complete fussing and Pressing. The process gets 17 seconds to be finished.
10. Packaging and Delivery :
To start step “J”, the previous step “I” should be finished. Step “J” is considered to be the
last and final step among all work elements. Here, workers fold those finished clothes,
attach tag, size and company logo. Then, all clothes are packed in protective plastic bags,
placed in cardboard boxes based on size and product type. After that, these products are
delivered to its respective branches. This step gets 20 seconds.

Bottleneck:
Just like other work force these types of work station also have bottleneck for the
Beximco. And for them Work element “H” is considered to be the bottleneck among all
the work elements. In this step, workers have to check or inspect all the clothes just to
ensure that those fall in a quality standard. Moreover, it assures the previous steps are
maintaining a quality standard which is done by human hands whereas, other steps are
completing by machines. Technology takes shorter time than human and for this situation
worker number is low. These are the reasons for work element “H” taking the longest
time which is why this step is being viewed as a bottleneck.
 Analysis and findings

In this section of report we are showing all the calculation that reaches the level of efficiency so
that Beximco can reach their goal. This type of calculation that helps to visualize the planning of
makes the station work with producing their quality standard product. We are started with the
assembling work frame with their working time that needs to finish their order work. Then, we
calculate the cycle time for each unit product that actually five the total time that is used to need
to make the full product. Then we use the cycle time value into the theoretical minimum number
which indicates the number of stations need making a product in this case we get 3 stations to
fulfill our product. Through this way of working Beximco can save 45.5 idle times we can be
very beneficial to produce more in quantity. it also shows the 90.37% efficiency with the
balance delay of 9.63%

Beximco work station assembles line:

Taking from the work station explanation set the working station with 10 different alphabetic
names. Also include their each own working time and in the chat their also a immediate
predecessors which indicated the co- relation between each other.

Due to corona pandemic all the outlets of Beximco were closed last Two and half months. The
CEO of the Brximco decides to produce more clothes to make profit. So he is setting up and
assembly line to produced 160 unites per 7 hours shift per week at least the next 2 months with
the efficient line balancing.

The following table identifies the work elements, time and immediate predecessors:

Work stations Time ( second) Immediate predecessors

A 90 ---
B 40 A
C 13 B
D 24 C
E 28 D
F 50 E
G 25 F
 H 120 B,C,D,E,F,G
I 17 H
J 20 I
TOTAL TIME = 427 second

CALCULATING THE CYCLE TIME:

SUBSTITUING IN THE CYLCE -TIME FORMULA

We know,

C = 1/r where, 7 hours in to second is 25200 and the amount of unit is 160 units

25200
= 160

=157.5 seconds.

That means Beximco have to spend 157.5 seconds to complete the whole work for making one
ladies kurti.

Calculating the theoretical minimum number:

Sum of the work element time is 427 seconds so we can put the values in TM formula.

We know that,

∑𝑡
TM= 𝑐

𝟒𝟐𝟕
==
𝟏𝟓𝟕.𝟓

=2.711 ~𝟑 stations.

To make on ladies kurti in the time of 157.5 they need 3 station complete
 The precedence diagram is given below

B
C D E F G

I J
 STATION CANDIDATES(S) CHOICE WORK- COMMULATIVE IDLE
ELEMENTTIME TIME
(SEC) (C=157.5)

S1 A,B,C A 90 90 67.5

B,C B 40 130 27.5

C C 13 143 14.5
S2 D D 24 24 133.5

E,F,G E 28 52 105.5

F,G F 50 102 55.5

G G 25 127 30.5
S3 H,I,J H 120 120 37.5

I,J I 17 137 20.5

J J 20 157 0.5

In the table using the trial and error method to make each station number 1, station number 2,
station number 3, are work as in group with the 45.5 sec idle time.

Calculate the idle time:

We know that,

Idle time= nc-∑ 𝑡

=3(157.5) – 427 where, n is the number of station total=3 and c is the cycle time
which is 157.5 and total time is 427

= 45.5 sec
Doing with 3 stations within the cycle time of 157.5 Beximco can save 45.5 sec to produce
more.

Calculating the efficiency:

We know that,

1
Efficiency (%) = ∑ 𝑡 𝑛𝑥𝑐

1
=427 x 3(157.5)

= 0.9037 x 100 = 90.37%

Calculating the balance delay:

We know that,

Balance delay= (100 – efficiency)

= (100 – 90.37) =9.63%

 Conclusion

Beximco began to emerge as a fashion brand despite the existing fact that Bangladesh was still
new to the fashion industry. Beximco benefits hundreds of thousands of people while providing
service to consumers. The customers also include foreigners visiting Bangladesh and as a result.
Beximco was mentioned in the guide to Bangladesh. Beximco is dedicated to bring about
positive change in the lives of disadvantaged artisans and underprivileged rural women. So
Beximco always concern about their product quality and customer feedback. Although in this
current pandemic for a big challenge situation for to manufactured with the new government
guideline. So they came up with proper planning which will meet the need of market with
limited amount of recourses.

REFERENCE

1. https://www.beximco.com/about-beximco/
2. https://www.academia.edu/27109097/Manufacturing_Process_of_BEXIMCO
3. https://www.slideshare.net/MeghbarotaSmith/business-strategy-analysis-of-beximco