Critical Analysis of Production Operation Management of

ACI Limited
Critical Analysis of Production Operation Management of
ACI Limited

Course Title: Production Operations Management

Course Code: MGT337
Section: 03

Prepared for:
Kaniz Fatima
Senior Lecturer
Department of Business Administration
East West University

Prepared by:

Group No Serial No Name ID Participation (%)

17 Hanan Abu Goni 2017-2-10-121 16.67%

25 Mostaque Ahmed Annto 2017-3-10-033 16.67%

7 26 Israt Jahan Jarin 2017-3-10-045 16.67%

31 Imam Mehedi Hasan 2018-1-10-092 16.67%

30 Ahmed Hasnain Mashuk 2018-1-10-047 16.67%

37 MD Shahrukh Hossain 2018-2-10-092 16.67%

Date of Submission: 19 May 2020

2
Declaration

This report is our own original work, we announce. Where the work of others has been included.
We have accepted it correctly in line with university standards. We clarified that we had not
submitted work that had previously been completed by another student or by someone else as our
own. We have not allowed anyone to copy our work with intention of passing it off as his or her
own work.

3
Letter of Transmittal

19 May, 2021

Kaniz Fatima
Senior Lecturer
Department of Business Administration
East West University,
Jahurul Islam City Gate, A/2 Jahurul Islam Ave,
Dhaka 1212.

Subject: Critical Analysis of Production Operation Management of ACI Limited

Dear Ma’am,
With due respect and great pleasure, we are submitting our report about ‘Critical Analysis of
Production Operation Management of ACI Limited’. We gratefully accept our supervisor's support
and assistance in preparing this term paper for the "Business Administration" department. The
report tries to explain what we learned during the research. Despite a number of obstacles, we put
in our best effort to make this case study report useful. There may, however, be flaws. We would
appreciate it if you could excuse those
In writing this term paper, we have made a sincere effort to comprehend and express our
experience. We thoroughly enjoyed the work and would happily take any of your calls to explain
any points if appropriate. Thank you for taking the time to read this.
Sincerely,
Hanan Abu Goni Mostaque Ahmed Annto Israt Jahan Jarin
2017-2-10-121 2017-3-10-033 2017-3-10-045
Imam Mehedi Hasan Ahmed Hasnain Mashuk MD Shahrukh Hossain
2018-1-10-092 2018-1-10-047 2018-2-10-166

4
Acknowledgment

All glory to Allah, the all-powerful and merciful. This term paper would not have been completed
without his blessing and approval. We would like to express our gratitude to our honorable teacher
Kaniz Fatema for her assistance. Without our instructor, this report would not be possible. The
amazing thing is that the internet and other social media outlets were crucial in completing our
mission. We are able to complete our report on time due to the information's availability. Finally,
we would like to state that we are willing to consider any and all mistakes and deficiencies that we
might have. We want to learn about our mistakes in order to improve in the future.

5
Table of Contents
1.0 Executive Summary ........................................................................................................... 7
1.1. Introduction ................................................................................................................ 8
1.2. Origin of the Report ................................................................................................... 8
1.3. The objective of the study .......................................................................................... 8
1.4. Scope of the study ....................................................................................................... 8
1.5. Limitation of the study ............................................................................................... 9
1.6. Methodology of the study ........................................................................................... 9
2. Brief Introduction ............................................................................................................ 10
2.1. Product Categories ................................................................................................... 12
2.2. Productivity ............................................................................................................... 15
2.3. Process Strategies ..................................................................................................... 16
2.4. Facility Layout .......................................................................................................... 17
2.5. Product Strategies..................................................................................................... 17
2.6. Scheduling ................................................................................................................. 18
2.7. Forecasting ................................................................................................................ 18
2.8. Inventory Management ............................................................................................ 19
2.9. MRP (Material Requirements Planning) ............................................................... 20
2.10. ERP (Enterprise Resource Planning) ..................................................................... 22
4. Findings..................................................................................Error! Bookmark not defined.
5. Conclusion ............................................................................Error! Bookmark not defined.
6. Reference ..............................................................................Error! Bookmark not defined.
6. Appendix ........................................................................................................................... 26

6
1. Executive Summary

We were sufficiently lucky to orchestrate a meeting with MD. Belal Hossen, General Manager,
Operation and Business Development at ACI Limited. He instructed us a ton of important fun
things about overseeing ACI Limited creation tasks. Advanced Chemical industries limited (ACI)
is one of the top brands in the country. This the multinational company in the country. An effective
management policy can prove that companies’ success and gain. Companies’ success to dependent
on their advanced mechanism, top management system, producers and result this policy helps to
company sales position and ultimate sales achieved. ACI limited focused on their high sales and
some terms and condition for legal approach. ACI company basically famous for their Pharmacy
department but now a days it become famous on the food, automobiles, logistic, Agribusiness they
are added some joint venture to the foreign company as like ACI Godrej Aggravate Limited, Tetley
ACI Bangladesh limited, ACI consumer care limited. The segmenting of ACI Company is most
effected on marketing. ACI focus to the good relationship with consumer because without
understand the customer they cannot judge their target market. ACI create good relation with their
employees because only employee their best to develop their company. Business is dependent on
employee and consumer. Without employee company cannot create new idea and knowledge and
without consumer they cannot sell their product in the market. ACI company introduce their market
to introduce Pharmacy department. Then they become popular with their food item FUN and ACI
pure products. Now they are fulfilling their marketing demand in their market
ACI inherited the rich ICI culture of product quality, customer service and social responsibility.
ICI Bangladesh Manufacturers Limited was a subsidiary of world-renowned multinational ICI Plc
and was a listed public limited company under Dhaka Stock Exchange.

7
1.1. Introduction

The motivation behind this examination is to analyze ACI Limited's assembling activities the
board. As one of Bangladesh's most notable customer brands, we picked this selective operational
organization to address an assortment of subjects, including efficiency, measure methodologies,
estimating, planning, MRP, and ERP. The inspiration driving this investigation is to break down
ACI Limited's amassing exercises the board. As one of Bangladesh's most striking buyer brands,
we picked this particular operational association to address a combination of focuses, including
productivity, measure systems, assessing, booking, MRP, and ERP.

1.2. Origin of the Report

This particular report is being prepared on the proposed topic ‘Critical Analysis of Production
Operation Management of ACI Limited’. The intention was to give an opportunity to the
students to gain operation management knowledge. This report was given to us as a piece of the
fractional prerequisite of the course Production Operations Management (MGT337) of Bachelors
of Business Administration program of East West University. Our course educator, our noteworthy
Faculty Kaniz Fatima, Senior Lecturer, Department of Business Administration has doled out us
this report as a piece of the course. Ma'am has approved the errand of composing this report on a
gathering premise.

1.3. The objective of the study

The objective of this report is to know how a company run its operations and how its operation
management process work. To know these things, we have to understand the productivity,
scheduling, forecasting, material resource planning, enterprise resource planning, inventory
management, procurement etc. By conducting this report, we came to know all of these things and
also understand the purpose of those process. The objectives of these reports are;

• Understanding operation management

• How does a company set its MRP and ERP?
• Determining the productivity
• How an organization forecast their next production
• How to design facility layout

1.4. Scope of the study

This research will assist students in learning more about a company's production operations
management in depth. Our study will provide students with a clear understanding of the
course's objectives. This will assist any student who wishes to join as an operations
manager.

8
 • This term paper focuses on operation management.
• This report focuses on how operation works in an organization.

1.5. Limitation of the study

Wrong & misguided information’s - Our report information cannot be 100% accurate. We found
that several sources had several types of information about the same topic.
Time limitation - To solve this kind of topic its take lots of time & effort. Because we had a limited
time, we couldn’t research properly. If we had more time then we could possibly make a better
report. But after all there is appropriate time limit to solve this kind of problems.
Lack of resource’s - We needed more resources for this study which we did not found. So, it was
quite difficult.
Perfect result – We cannot judge ourselves. We are not capable enough by experience to say that
we produce a perfect result. So, we are not claiming to be 100 percent accurate.

The pandemic prevented us from visiting the factory, which was the report's biggest drawback.
We would have learned more about ACI Limited's Production Operation Management if we had
been able to visit the plant. We were also unable to conduct a physical interview and had to conduct
an online interview instead.

1.6. Methodology of the study

Data collecting was quite simple because we are making a report on ‘Critical Analysis of
Production Operation Management of ACI Limited’

- Primary data collection: Since the term paper is on Production Operation

Management, so our primary data collection source is an interview secession. We
interacted with MD. Belal Hossen General Manager, Operation & Business
Development at ACI Limited over a video call.
- Secondary data collection: Our secondary option was internet. We also viewed
articles, journals about Production Operation Management of ACI Limited’ in
several newspaper and magazines as an information source.

9
2. Brief Introduction

Imperial Chemical Industries (ICI) Bangladesh Manufacturers Limited is an auxiliary of eminent

global drug ICI Plc., set up in Dhaka in 1973 and was a recorded Public Limited Company under
Dhaka Stock Exchange on 1976. In 1992, ICI Plc. stripped its shareholding through a
neighborhood the executive’s takeover and the organization name was changed to Progressed
Chemical Industries. ACI aspires to adhere to International Quality Management System
Standards in order to ensure continuity in ensuring the quality of a broad variety of goods and
services in order to achieve customer satisfaction. The company also complies with all relevant
national regulatory criteria for conducting its current business and states that it adheres to the
World Health Organization's current Good Manufacturing Practices (cGMP). This is made
possible by ACI Limited's goal of achieving corporate excellence through quality through
recognizing, embracing, meeting, and exceeding customer expectations.
In 1926, Imperial Chemical Industries (ICI) was incorporated in the United Kingdom as four
companies namely Novel Industries Limited, British Dyestarts Corporation, Brunner Mond and
Company Limited and it merged with United Alkali Company. Since then, ICI Plc. has been
operating worldwide as a multinational company. In the year of formation, ICI started operation
in the Indian subcontinent in the name of ICI (India) limited. After separation of the India and
Pakistan in 1947, the Karachi office of ICI (India) Limited renamed to be ICI (Pakistan) Limited.
After the independence of Bangladesh, the company has been incorporated in Bangladesh on
January 24, 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited Company.
The Company also got listed with Dhaka Stock Exchange on December 28, 1976 and its first
trading of shares took place on March 9, 1994. Later on, May 5, 1992, ICI Plc. divested 70% of its
shareholding to local management. Afterwards the company was registered under the name of
Advanced Chemical Industries (ACI) Limited. On October 22, 1995 ACI Limited was listed with
Chittagong Stock Exchange. ACI Limited with a multinational heritage today is one of the leading
and largest conglomerates in Bangladesh. The company is differentiated into four concentration
business groups and they 2 are Pharmaceuticals, Consumer Brands, logistic (Swapno) and
Agribusiness. In addition, ACI Limited is the first company in Bangladesh who achieved both
ISSO9001 certification of Quality Management System in 1995 and ISO14001 certification for
Environment Management System in 2000. With the belief of business excellence, ACI maintains
a congenial and supportive relationship with the healthcare community of Bangladesh, with the
belief that business excellence can only be achieved through pursuit of quality by understanding,
accepting, meeting and exceeding customer expectations. ACI has a competent team of
professionals; therefore, the company is being operated with a progressive attitude to provide
effective solutions to satisfy the customers‟ needs and desires, through its quality products and
services.

10
Mission

ACI's Mission is to enrich the quality of life of the people through responsible application of
knowledge, technology and skills. ACI is committed to the pursuit of excellence through world-
class products, innovative processes and empowered employees, to provide the highest level of
satisfaction to our customers.

Vision

• Deliver high-quality, reliable goods and services to our customers, ensuring that they get
good value for their money.
• Strive for a place of leadership in each of our company categories.
• Empowering our workers and rewarding creativity are two ways we can help them develop.
• Encourage a culture of learning and personal development.

Values

ACI Limited upholds the following principles for its own sake and that of its customers.
•Quality
•Customer Focus
• Fairness;
• Transparency
• Continuous Improvement and
• Innovation

11
 2.1. Product Categories

Pharmaceuticals, Consumer Brands, and Agribusiness are the three main business units that make
up ACI Limited. ACI Limited also has branches and joint ventures that specialize in retail chains.

•ACI Pharmaceuticals
Business Units •ACI Consumer Brands

•ACI Agribusinesses

Joint Ventures
• ACI Godrej Agrovet Private Ltd.
Subsidiaries and Joint Ventures
• Tetley ACI (Bangladesh) Ltd.
• Asian Consumer Care (Pvt.) Ltd

Subsidiaries
• ACI Formulations Limited (ACI FL)
• ACI Salt Limited
• ACI Pure Flour Limited (APFL)
• ACI Foods Limited
• Premiaflex Plastics Limited
• Creative Communication Ltd.
• ACI Motors Limited
• ACI HealthCare Limited
• ACI Chemicals Limited
• ACI Logistics Limited

12
Pharmaceuticals-ACI pharmaceuticals has a diverse product portfolio that includes tablets,
capsules, dry powder, liquid, cream, gel, ointment, ophthalmic, and injectable drugs in a variety
of dosage types. ACI Pharma now has a cutting-edge facility for Novel Drug Delivery Systems
(NDDS). It manufactures world-class Modified Release drugs and medicines to meet the needs of
domestic and foreign pharmaceutical manufacturers.
Consumer Brands & Commodity Products-With market-leading products such as ACI Aerosol,
ACI Mosquito Coil, and Savlon, the Consumer Brands Division enjoys an unequivocal position in
consumers' hearts. These are the unsung heroes when it comes to keeping the house safe and clear
of germs and insects. Bangladeshi consumers' desire for pure food, especially in the commodity
food industry, has prompted ACI to fill the market gap by producing commodity products such as
salt, flour, and spices. Bangladeshi consumers can now purchase 100 percent pure salt, spices, and
wheat products under the brand name "ACI Pure." ACI also distributes and forms joint ventures
for the world-renowned product lines of Colgate, Nivea, Tetley, Godrej, and Dabur in Bangladesh.
Agribusinesses-ACI Agribusiness is Bangladesh's largest agricultural, livestock, and fisheries
integrator, specializing in crop protection, seed, fertilizer, agrimachinery, and animal health
products. These companies have a well-known presence in Bangladesh. Crop safety chemicals and
seed are provided by CC & PH. Fertilizer Supplies, Hybrid Rice, Vegetable and Maize Seeds
Agrimachineries provides tractors, power tillers, and harvesters, while Animal Health provides
high-quality nutritional, veterinary, and poultry medicines and vaccines.

Services of ACI Ltd

There are many services provided by ACI Limited. They have many activities and related business
units to provide those services.

Salt International Brands Foods

Antiseptics FemaleHygiene Flour
Kitchen Care Men's Grooming Kitchen Care
Fabric Care Baby Care Fabric Care
Surface Care Electronics Paints
Herbal Care Electrical AutoMobiles
Beauty Care Edible Oils Mobiles
Air Care Agri Machinery Tea
Agrolinks Trading Infra. Dev. Machinery Fertilizer
Automobiles Animal Health Feed & Inte. Poultry
Flexible Packagings Cons. & Engr. Plastics Retail Chain (Shwapno)
Chemicals Trading Media & Communication
13
ACI focus on technology-driven industries with attractive, long-term growth trends. They are well
equipped with world class source and solutions of different types of raw materials ranging from
textile chemicals to food functional ingredients, heavy industrial capital machineries to packaging
raw materials. ACI are committed to provide COMPLETE SUPPLY CHAIN SOLUTIONS to
their valued customers. Their focus industries include:
• Textile
• Leather
• Coatings & Adhesives
• Environmental Science
• Food & Food Ingredients
• Household & Industrial Cleaning
• Commodities
• Power & Energy
• Industrial Machinery
• Personal Care
• Pharmaceuticals Ingredients
• Water Treatment Chemicals

14
 2.2. Productivity
Being one of the largest business company ACI, has more diversified business compare to its
competitors. ACI is far more contributing to the country and society than others companies in
Bangladesh.
Labor productivity
In terms of labor productivity, ACI Limited provides a
pleasant working environment and encourages its
employees to collaborate in order to achieve the
company's goalspecial incentives plan on a case-by-case
basis: there was demand to make more sanitizing
products during the Corona period, yet there was a labor
shortage. As a result, ACI offers 2.5 or 3 times (on a time
basis) rewards for extra work, compared to 2 times in
typical circumstances. They also offered their product to
their labor as an incentive to utilize it, as well as a health-
care plan for the labor's family. These measures have a
positive impact on worker productivity.
Capital
They invest a large number of capitals. But ACI will
not reveal the actual amount. This data we got from an
article.
Raw Materials
Identification of need: This is an internal step for a
company that involves understanding of the company
needs by establishing a short-term strategy (three to
five years) followed by defining the technical
direction and requirements.
Supplier Identification: Once the company has
answered important questions like: Make-buy,
multiple vs. single suppliers, then it needs to identify
who can provide the required product/service.
Supplier Communication: When one or more suitable
suppliers have been identified, requests for quotation,
requests for proposals, and requests for information or
direct contact may be made with the suppliers.
Negotiation: Negotiations are undertaken, and price,
availability, and customization possibilities are
established.
Supplier relationship: During this phase, the company
evaluates the performance of the P/S and any
accompanying service support, as they are consumed.
Supplier scorecard is a popular tool for this purpose.
Productivity by energy
ACI uses a "U"-shaped manufacturing and production
method to save energy and money. A new system
will make more efficient critical business
processes for many departments. It will make data
collection better and more efficient, more
efficient use of bright people in office and don’t
have to enter things by hand
15
2.3. Process Strategies

ACI is "item engaged" on measure methodology. They are dependent upon the principles of low
verities in huge amounts. They center around creating each item in turn. They attempt to
accomplish the expense of limiting the objective of the item they produce.
ACI follows an item driven methodology. This implies that item activities and measurements are
related with organizations that are constantly improving their items to stay important in the
assembling business. For instance, we are pondering item procedures, for example, the focal point
of item cleanser methodologies. This danger is advertising nearsightedness. What perils are there
when you center around their items and set them up similarly as the strategies and practices they
offer. On the off chance that the item works, how to set the objective market and highlights. In
item system, rather than attempting to be everything for every one of them, we are just pondering
the particular objective market of the item.
They are massive and observe the standards of low varieties. ACI produces a few kinds of items,
yet they don't keep excessively different. Since they center around the nature of the item, not the
assortment of items. For instance, ACI has its own cleanser, however its product offering has
neither flavor nor assortment. It has a quality one class cleanser. That is the reason they observe
that standard. Another point is that ACI centers around assembling each item in turn. At the point
when ACI produces items, they keep on zeroing in on a specific item. Around then, they don't
consider creating different items. For instance, in the event that they need to create ACI mist
concentrates, they just produce this specific item. There could be no other item they consider for
creation. ACI not just trusts in the presentation of new atoms, aside from the entirety of this ACI
Limited, yet additionally accepts that a solid brain goes with a sound body - ACI accepts this old
maxim Our more youthful age ought to become sound with a solid constitution and who will lead
the country later on Think about it. BPL depends on the practice of furnishing individuals with
creative medical services. ACI-restricted items are pointed toward assisting everybody with
carrying on with a sound life. The ACI restricted portfolio is portrayed by a top notch and
compelling item range, some of which are first of its sort, some of which are positioned first in the
field of treatment. A group of gifted individuals sets the highlights and qualities of the item.
Workmanship and science are submerged in items.
ACI elite items were planned and fabricated in a manner that is totally unique in relation to
contending items in by and large portrayal, size, shape, shading, taste, consistency and covering.
ACI confined introductions are generally known for their best tasteful appearance among all
contending brands, regardless of whether in bundling rankles, strips, containers or containers.

16
 2.4. Facility Layout

ACI Limited keeps a proficient office design that ensures a constant and savvy stream of creation
material, apparatus, and labor. ACI Limited makes proficient work processes to build the
profitability of both gear and staff. Since it is a global organization, they have various formats for
assembling different items.
For Vanish latrine cleaner, ACI has a restricted utilize self-loader creation unit. They start by
marking the compartment, which they get from Isabah (Chittagong) and naming from Umme
printers (Mirpur), and afterward they fill the holder. There is a blending machine that joined the
entirety of the crude materials (Hydrochloride Acid, Kelzen, Fentacare) and put them in a huge
tank, and there is a tap that can deliver 33,000 units in 24 hours. That implies there is one shift like
clockwork. They produce 11,000 units on a common day. At the point when the compartment was
placed in the spout, it was consequently set to fill 500ml or 750ml. At that point, after the filling,
go to cartooning and loading, lastly, conveyance. Typically, this item focuses on first-come, first-
served orders.

2.5. Product Strategies

ACI currently has more than 2000 products present in the market. They are the market leaders in
the mosquito coil segment and aerosol. Every company's product strategy is a critical component
that must be followed. Product strategy identifies what a product should accomplish and how it
will benefit the company. Product strategy describes how the product will benefit the company, as
well as the problem it will answer and the influence it will have on customers and the organization.
ACI Limited, like every other firm has its own product strategy for its daily kitchen essentials.
Differentiation is a method used by ACI. For example, when it comes to spices people choose
quality over pricing. Because their technique is linked with the Made-To-Stock approach they also
employ the Made-To-Stock technique to make their daily kitchen essentials.
Products that are made in advance of demand for immediate sale or delivery. That is, the entire
manufacturing process is completed before a consumer order is placed. The product is
standardized, mass-produced in huge quantities, the type of inventory is finished items, and the
delivery period is immediate or short. In this strategy there is no scope of customization since the
entire manufacturing process is pre made.

17
2.6. Scheduling

In a production or industrial process, scheduling is the process of organizing, managing, and

optimizing work and workloads. The goal of scheduling is to schedule the sequence of work so
that production can be organized in a methodical way to ensure that all goods are completed on
time. The forecast can be driven to success with the correct scheduling approach to estimate the
completion date for each part that has been issued and to offer statistics for determining what to
focus on.
ACI schedules its activities on a weekly basis. They use diverse software developed by internal IT
systems to maintain scheduling, which has become an important factor and very cooperative.
Scheduling is used to assign plant and machinery resources, plan human resources, organize
manufacturing processes, and procure supplies, among other things. According to the respondent,
ACI Limited works on a variety of projects using a variety of software. Furthermore, they employ
a Gantt chart for non-technical employees to comprehend how and when activities will take place
as well as PERT (Program Evaluation and Review Technique) to analyze and graphically depict
their production process.

2.7. Forecasting

ACI limited actually consider time series and associative data. Forecasting is a technique that uses
historical data as inputs to make informed estimates that are predictive in determining the direction
of future trends. Demand Forecasting The first step of Supply Chain Process of ACI First Stage
Demand Forecasting comprises ROFO Circulation & Production Plan. ACI follows push
production process that means statistical forecasting is really crucial for Through utilizing these
two processes, ACI predicts its future product demand and makes proper plans. “MatPlan” a
crucial tool for forecasting and supply Chain Process of ACI Production managers make
production plan and verifies with RFO and makes necessary adjustments. Different departments
facilitate a six-month rolling forecast (ROFO) ROFO Circulation Production Plan. Based on the
interview with MD. Belal Hossen, General Manager, Operation & Business Development,
ACI Limited, we get to know, ACI use only time series. Mostly ACI forecast based on the past
data record. Like they use one-year data June to June to forecast and which actually done by their
internally developed software. On the other hand, they also consider other factors like when they
are promoting any product or giving any trade offer, any discount, those actually have effect on
their forecasting as well.

18
 2.8. Inventory Management

Inventory Supply Chain Network Design ACI ensures cost minimization through putting intensive
concentration on storage, reducing manpower cost, dispatching authority with on time delivery,
loading & unloading facilities with proper area, and stock management system etc. And it
optimizes the level of inventory through real-time communication between members of the
purchasing and warehouse department of ACI limited is proud of their own products and services
that consist of this part of the consumers demand fulfillment.
ACI have their own storage system for inventory. They consider the FIFO (First in First Out)
method for inventory management. They have their own external warehouse for the made to stock
items before going out for distribution. The entire unit of production is recorded and secured. The
maintenance information is confidential and sharing it out is against the company policy. They
have to follow their own management system as well that is based on the company policy. Those
are the 3 ways which they consider:

RM-PM (raw material, Working progress

packaging material)

Finished goods

For maintaining an exclusive inventory management to improve efficiency ACI follows some
rules:
In this point when production unit experience a shortage or excess. They figure out where it all
went wrong; they could be able to fix it more easily. They find up for the retail statistics of the
other competitors by doing a survey which led them to gain more efficient results. They have
effective shelving and storage system. Supervisors need not to check each product from each
cartoon if the cartoon is intact. Normally there is a batch no. on the cartoon. If a product is checked
for date expired and each of the cartoons is for the same batch no. that means that, the Mfd and
Exp date is similar. Create different layers among products to address different periods of demand
for specific types of merchandise. Production Unit of ACI Limited also categorize inventory by
type of customer, profit margin it delivers, and overall cost of having it on hand. When it comes
to managing its inventory, trying to maintain the right balance is a challenging task. After all, too
little stock can lead to a stock-out, unhappy customers and potential loss of sales. But they manage
it properly. Perhaps the biggest benefit to using inventory management software is that it makes
the process of managing their inventory a whole lot easier, saving you time, money and quite
19
frankly, sanity. Whatever changes ACI limited should make the basis for a formal inventory
management policy. The policy will define responsibilities and illustrate how they are balancing
cost-effective measures with optimized customer service that addresses fluctuating demand.
Whatever changes ACI limited should make the basis for a formal inventory management policy.
The policy will define responsibilities and illustrate how they are balancing cost-effective
measures with optimized customer service that addresses fluctuating demand. This list providing
a basis for the value of efficient of current inventory process. This will help ACI limited better
prepare for the upcoming year of seasonal demand.
This includes the management of raw materials, components and finished products, as well as
warehousing and processing such items. There are also some other inventories of ACI limited:

• Finished goods
• Work in Process
• Packing Materials
• Laboratory Chemical
• Physician Sample
• Raw and Packing Materials in Transit
• Spares and accessories.

2.9. MRP (Material Requirements Planning)

Material requirement planning is a computer-based inventory management system which is

designed for calculating the quantity of raw material, is needed to conduct operations of an
organization. Business organization use MRP to increase their productivity. From the production
plan to finished goods MRP helps to identify inventory requirements for raw materials.
MRP deal with three things or MRP is designed for these three questions;
1. What is needed?
2. How much is needed?
3. When is needed?
By answering these questions, we can easily figure out the materials and items is needed for
manufacturing a product. MRP reduced inventory cost, effective inventory management, improved
manufacturing efficiency and inventory is available when it’s needed.
The input of material requirement systems are;

20
 1. The master production schedule:
2. Bill of material file
3. Inventory master file
The output of material requirement systems are;
1. Purchase order
2. Manufacturing order
3. Various report

ACI MRP Process

MRP system can be conducted by both software-based system and manual process. ACI has
transformed the process of procurement and developed a system to an involvement of key suppliers
in product development phase. ACI has its own software based MRP system which is called
“MATPLAN” developed by ACI-MIS.
This software is developed for three purpose and it’s simultaneously met those three objects;
1. Maintain the lowest possible material and product level.
2. Purchasing activities, manufacturing activities and delivery schedule are planned.
3. Ensure available of materials when it’s needed and available customer for the product.
MRP is calculate for meet the supply and demand at the time of production. At the time of
production ACI use this software to calculate how much inventory they needed to produce a
product. In the MRP system ACI conduct these types of research;
21
 1. They make list of potential suppliers for raw material
2. Request quotation of for materials (RM and PM) mentioning material type, name,
specification, quantity, delivery and so on.
3. RM section they determine how much inventory they need to purchase at the time of
production
4. PM section they identify how much bottle can, plastic, wrapper, container, caps they need
to purchase for packaging their product.

2.10. ERP (Enterprise Resource Planning)

Enterprise resource planning is use for everyday business activities. It tracks business resources-
cash, raw material, production capacity which help to business commitment- order, purchase
orders and payroll. ERP system help organization to make plan, estimated budget, forecast and
predict the organizations overall financial situation. ERP software integrated all of these process
which is needed to run a company. By using ERP organizations are capable to communication
between business areas; suppliers, business partner, client. ERP is a single source of information
which provide accurate real time data.

ACI SAP Process

ACI Limited use SAP Enterprise Resource Planning service. It is the most advanced resource
planning process. SAP is made to conduct individual business modules that perform various task
of an organization. SAP software has many form; ERP, CRM, HR, Supply chain, Data
management, Analytical etc. SAP provides outstanding resource management system which
perfectly fits with the structure of Bangladeshi local companies of all sizes.

22
 4. Findings
Subsequent to investigating about the given points on the web and taking a virtual meeting of MD.
Belal Hossen, General Manager, Operation and Business Development, ACI Limited, we become
more acquainted with;
• ACI centers around each item fabricating in turn and they use separation.
• ACI keep high volume low assortment rules.
• They center around quality not cost.
• As for the booking ACI restricted arrangement that on week after week time premise
• In instance of estimating they follow both time arrangement and acquainted.
• For their stock administration they do it by 3 different ways. 1. RM-PM, 2. Working
advancement 3. Completed products.
• Manage MRP physically and ERP actually

23
 5. Conclusion

To compete with other companies a well-planned management control system is much needed.
For sustainable operation and management process company need to implement the applications
of management principals. With the development and expansion of production organizations in
the shape of factories are facing more complicated problems like; location and lay out, inventory
control, quality control, routing and scheduling of the production process etc. came into existence
which required more detailed analysis and study of the whole phenomenon.
ACI limited being a large nearby organization ought to constantly sit up for improving their supply
Chain community by using adopting the first-rate practices and assembly benchmarks which can
be very much a success in deliver Chain control globally. ACI Limited has multiple business and
functions which need to be integrated. They have to manage their individual industry and
simultaneously focus on their whole business which is only possible if they have better
management process like; inventory management, product category, ERP, facility layout etc.
Already ACI has successfully implement and develop these functions.

To emerge as one step in advance, every Bangladeshi organization, mainly manufacturing like
ACI restricted must usually dedicate itself to discover ways to undertake every great practices and
get up to date with technologies which might be widely known and utilized in Production
Operation subject.

24
 6. References

We interacted with MD. Belal Hossen General Manager, Operation & Business Development at
ACI Limited over a video call and also this information is taken from (Google, Google scholar,
Wikipedia, Researchgate.net, online-slide, cliffnotes.com, online article, online-newspaper and
our text book).

Operations Management by Nigel Slack, et al. (7th edition) Pearson Education

Operations Management by William J. Stevenson (12th edition, 2014) McGraw-Hill Education
Operations Management by Jay Heizer, Barry Render, J. Rajashekhar (9th edition, 2009) Pearson Education
Aci-bd.com

25
 7. Appendix

To gather information for the study, we conducted a virtual interview with MD. Belal Hossen,
General Manager, Operation & Business Development at ACI Limited. We have added the notes
we took during the interview based on the appropriate topics given by our ma'am.

Ques 1: Product categories What Type of product categories ACI use?

Ques 2: Productivity How they are operating their productivity?

Ques 3: Process strategy Which process they are follow?

Ques 4: Facility Layout Explain us Facility layout any particular

product?

Ques 5: Scheduling How they are scheduling their activities?

Ques 6: Forecasting What kind of forecast ACI doing?

Ques 7: Inventory Management: which method ACI follows in inventory

management?

Ques 8: Product strategy Basic Information about the company. (We

can also collect it from the website of the
organization)

Ques 9: MRP What is the way of material resource planning

conducted by ACI?

Ques 10: ERP What types of software ACI use to integrated

their operations?

26