Topic

A Report on Operations Management Practices in Bashundhara Cement

Course Title & Code

Operation Management
MGT 517
Section- 2

Submitted To
Sajjadul Mawla
Lecturer
Southeast Business School
Southeast University

Submitted By
Md. Saiful Islam Masum
2020010004113
35th Batch
Master of Business Administration (1 Year)

Submission Date
12th October 2021

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 Executive Summary
Operation Management is the activity of managing the resources which are devoted to the
production and delivery of products and services. If any organization wants to fill up their vision,
they should properly follow the operation management practices. The best way to start
understanding the nature of operation. The objective of operation management are right quality,
right quantity, predetermined time and pre-established cost. Without effective operation plan a
company cannot be operated properly.
If a division manager does not take effective plan to operate the organization activities so that the
business will suffer in the long run that’s mean the business unit will not be profitable and if a
business unit fail to fulfill the objective, the company will be affected in total. Basically, I have
discussed operation management of Bashundhara Cement on this assignment.
Introduction
Bashundhara Cement is the premier product of Bashundhara Industrial Complex Limited (BICL)
that was established inside the Industrial Zone of Mongla Port and at Madanpur of Narayanganj
district in the contemporary months of the year 2012.
Equipped with the most modern technology in cement manufacturing – Vertical Rolling Mill
(VRM) – the plants were taken up to address the ever-growing demand for higher-quality cement
in the country targeting several large-scale development projects in the public sector.
The collective annual production capacity of the plants is nearly 5.05 million metric tons.
Capacity of the plant in Mongla is 2.65 million while the plant in Madan Ganj is 2.4 million
metric tons. Portland Composite Cement, Blast-furnace Slag Cement and Ordinary Portland
Cement are among the mainline products of the plants.
Organization Overview
Bashundhara Cement, a sister concern of Bashundhara Group, will supply 200,000 tonnes of
cement to the country’s first-ever Metro Rail project. Thailand-based construction firm Italian-
Thai Development Public Company Limited (ITD), a contractor of the project, signed a deal in
this regard with Bashundhara Cement on Saturday. Here I am trying to focus some operation
management practices of Basundhara cement.
Bashundhara Group Managing Director Sayem Sobhan Anvir and ITD Project Director Wichien
Roongrujirat signed the deal on behalf of their respective sides at a function at Le Meridian Hotel
in the city. ITD Project Manager Thawit Yuenyong, Bashundhara Group Senior Deputy

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Managing Director Belayet Hossain, Deputy Managing Director Md Mustafizur Rahman, Chief
Financial Officer Tofail Hossain, Cement Sector General Manager Khandaker Kingshuk
Hossain, and Bashundhara Group Media Advisor Mohammad Abu Tayeb were present on the
occasion, among others.
Bashundhara Cement was chosen for the Metro Rail project owing to its superior quality and
speciality in production through VRM (Vertical Roller Mill) technology. VRM is the most
advanced technology in cement manufacturing. Bashundhara Cement has adopted VRM from
Loesche, Germany in both its factories to ensure the best quality. The metro rail, which is known
as Mass Rapid Transit system, will run from Uttara to Motijheel and carry some 60,000
passengers per hour. The project is financed by the Bangladesh government and Japan
International Cooperation Agency. Partial trial operation of the MRT is scheduled to start by the
end of 2019, while the commercial operation of the full system is expected by the end of 2020.
Bashundhara Group is one of the most prestigious and experienced commercial and industrial
conglomerates in Bangladesh today. The Group took off from the incipient period after
establishment of East West Property Development (Pvt.) Ltd. a real estate concern, popularly
known as “Bashundhara” which happened to be its first venture in this sector. Keeping pace with
rapid economic and technological changes followed by the policy of Globalization, Bashundhara
Group has outspread their business activities within a short period of time and have been able to
emerge as a promoter of international standard of business houses and industrial enterprises
founded on the principles of engineering and financial integrity with a group of highly capable
technical personnel and professionals. Since inception, Bashundhara Group has been actively
contributing to the national as well as global economy by effective utilization of resources, using
raw materials, production and marketing high quality products at competitive prices and creating
employment opportunities.
Bashundhara is now operating with fourteen vital enterprises of highly esteemed commercial and
technological superiority having profound degree of specialization in the field of real estate,
industrial ventures and commercial enterprises. Current value of the total assets of the enterprises
of Bashundhara Group would be about Tk. 15000 million equivalents to approximately US$ 300
million. Total turnover of the business amounts to around Tk. 16000 million equivalent to US$
325 million. Presently, 8100 people are employed in various enterprises of the group. Besides,

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through its multidirectional economic activities, Bashundhara has created employment
opportunities to over 30,000 people.
Mission
Bashundhara Group believes in serving the people and the country; not only in doing business
and making profit. It had come into existence with that belief and adopted ‘For the People, For
the Country’ as its core theme. All the Bashundhara Group concerns always try to offer best
possible services and products to customers for attaining their full satisfaction, as the group
endorses the notion that customers are the ultimate determining factor in success of any
organization. It always strives to introduce new products and services to the customers.
Bashundhara Group believes that no organization can grow without an able and dedicated
workforce behind it. It values and nurtures its officials, employees and other members of the
staff accordingly. Through various acts and measures, the group tries to create a sense of
belonging among the workforce so that they explore their full potential and give full dedication
to the organization and get evaluated accordingly. As a business conglomerate, Bashundhara
Group does not want to grow alone; it wishes to grow together with its partners, patrons,
customers, employees and other stakeholders.
The group has reached out to many poor and underprivileged people through different
philanthropic services and it wants to expand them across the country for the welfare of the
people and development of the country.
Vision
Bashundhara Group has already become one of the largest conglomerates and the leader in many
areas of business and industry in Bangladesh. It wishes to go far ahead from where it is now. The
group wants to be the largest business house of the country and the biggest contributor, from the
private sector, to the economic and social development. It also wishes to bring more and more
people under job and thus become the largest employer in the private sector.
To accomplish the vision, the group has already ventured into many business and industrial
areas, including some as pioneer, and has plans to be engaged in many more areas. The group
has started works for going global and hopes to announce its global presence in a couple of
years. Doing business is not an easy task anywhere, particularly in the fast- changing global
scenario, which invites many new challenges. However, Bashundhara Group is confident of

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continuing its march forward even at a faster pace in any situation – favorable and unfavorable –
in the days to come and always uphold its core theme – For the People, For the Country.
Discussion and Findings
The operation management practices in Bashundhara Cement
Operation management is the business function which is responsible for planning, coordinating
and controlling the resources needed to produce products and services for a company. Every
organization has an operation function because every organization produces some type of
products or services. So Bashundhara Cement also follow the operation management system to
produce their product.
Production Capacity of Bashundhara Cement
Capacity is the measure of an organization’s ability to provide customers’ demands for goods
and services in the amount and the time requested.
Factory location & Capacity:
1.Bashundhara Industrial Complex Limited (Unit: 01) Madangonj, Narayangonj
Production Capacity: 8000 MT (Per Day), 2.40 million MT (Per Year).
2.Bashundhara Industrial Complex Limited (Unit: 02) and BICL in Mongla, Bagerhat Production
Capacity: 8840 MT (Per Day), 2.65 million MT (Per Year).

Process Flow Test Parameters Frequency

Physical Test Minimum 3 Samples per Ship or Vessel

During unloading period, daily 3~4 nos

of all samples is collected, After
Raw Materials Quality
Physical Test, one part of each
Control Chemical Test
collection is stored & after 3~4 days, an
average is prepared as sample for
Chemical Test.

Production Process Control Physical Test Hourly

& Sampling in both Ball Mill Chemical Test Hourly
& VRM Every Hour
Physical Test Daily

Finished Products (Packer Chemical Test Minimum 3 nos/Week

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1&2)

XRF ANALYZER
One-stop Chemical Analysis
Rigaku ED_XRF NEX CG - USA
Quality Control Energy Dispersive X-ray Fluorescence (EDXRF) is the most modern technology
for analyzing chemical composition of a matter. Bashundhara Cement is the only user of EDXRF
among all cement brands in Bangladesh. To ensure its best quality of the product, EDXRF has
been adopted in both the factories. The mechanism of this machine is to screen and analyze the
right composition of the raw materials mixed in the product. It helps to control product quality
and ensure the best performance of the cement in a steady and dependable way.
Exclusive Services of EDXRF:

 Rapid analysis
 Nondestructive analysis
 Easily analysis of the element among the same family elements
 High Accurate analysis
 Easy qualitative analysis

Total quality management (TQM) of Bashundhara Cement

Quality & Control of Bashundhara Cement:
Bashundhara Cement is committed to ensure better product through quality of raw materials.
Bashundhara Cement has defined its Quality Policy to fulfill this commitment. To achieve and
maintain a steady quality, a range of sophisticated state-of-the-art technology is engaged in
operation. Bashundhara Cement has adopted the latest quality philosophy by organizing a well-
equipped Quality Assurance Department in the plant in addition to Quality Control Department.
Above all highly qualified, well-trained, experienced and dedicated professionals are most
valuable assets of Bashundhara Cement.
Brand Name:
A good name can add greatly to a product’s success. Bashundhara Group itself a strong brand.
BICL. Is an enterprise of Bashundhara Group? Bashundhara cement of BICL is well-known
throughout Bangladesh. It is very easy to pronounce, recognize and remember.

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Customer Satisfaction:
Every Company’s main target is customer satisfaction though quality products. Bashundhara
cement met up the customer satisfaction. The operation managers works hard to ensure their
product quality.
Concrete lab:
Quality Control Bashundhara Cement has highly equipped laboratories in both the factories to
provide constant and smooth product performance. With the application of advanced
machineries, it is possible to evaluate and analyze product quality, achieve prompt test results
and provide other technical services according to customer requirement.
Design:
The style of Bashundhara cement is simply that describes the appearance of a product. Design is
a larger concept than style. They use modified design in packaging also modified in product
quality.
Packaging:
Bashundhara Group has its own cement bag factory that meets demand of the country. This bag
is well furnished, environment friendly and pilfer proof.
Sizes:
Bashundhara cement is contains 50 kg in each bag. It is available in all over the country.
Services:
They try to give the customer best service. They deliver the product to the customer’s address in
their own responsibility.
Pricing:
The cost of cement is very high at present. However, depending upon the quality and brand name
of company, the aggregate financial involvement also varies quite significantly. List price: The
price is called which is written on the product. The Bashundhara cement do not write any price
on the packet because this price is very much unstable. Their ex-factory is TK 395/- It varied on
distance.
Discount:
BICL Authority offer different type of discount system that is depends on the party. The buyer
can deduct 10/-, if the bill is paid in advance. BICL fix some commission for its authorized

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partners like Target Commission, Slab Commission, General Commission, Yearly Commission
and some special offers. After deducting all Commission flat rate for dealer is TK 352/-
Promotion:
BICL. operates its advertising and other promotional programs by a Marketing department. The
department works for continuous innovative advertising campaigns for the consumer and
business products of Bashundhara.
The promotional activities for BICL are carried out by this department. This company has wide
range of promotional activities to attract the target customers. The Marketing department has
some creative and energetic personnel who launch frequent promotional programs. The existing
promotional tools used them are:
1. Advertising
2. Personal selling
3. Sales promotion
4. Public Relations
5. Direct Marketing
Sales Procedure:
Local Selling
BICL markets its product through some distributors and dealer scattered all over the country. But
cement is reached to the retailers and end-users by the company through its transport facilities. It
also directly sales cement to customers ranging from individual home builders to contractors of
industries, developers and corporate organizations and reach the product by BICL s own care.
The BICL has 20 distributor and 128 dealers who are working directly with the retailers. More
than 2000 retailers are participating with BICL for facilitating retail scheme.
Corporate Selling
The different corporate bodies are among the valuable users of Bashundhara Cement Day by day
the customers for Bashundhara Cement in this field are increasing as they are gradually finding
the compatibility of the locally manufactured cement of the local entrepreneurs. Their previous
notion about the supremacy of multinational company’s product is being changed after use of
Bashundhara Cement side by side with that of the former. So, Bashundhara Cement’s customers
in real estate owners’ developers, industrial builders are in increasing trend. List of the most

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valuable organization using Bashundhara brand cement marketed under the corporate sales
services by marketing & sales department of Bashundhara Cement.
Export Selling
Cement is the latest addition in the list of export commodities in Bangladesh. Our country started
exporting cement from January 2003 but Bashundhara Cement of BICL start form 2015 takes the
pride of part of it. Earlier, apart from some production of state-owned Chhatak Cement Factory,
the country was dependent on its import. In this context, local investors took the initiative for
setting up cement factories and starts producing cement in 1992. The production in eight private
factories stood 34 lakhs tons in 1997, So far, about 100 Factories got government’s approval of
which 56 factories are on production with a production capacity of 1.30 crore metric tons against
a domestic demand of 60 lakh tons in a year. Research shows that there is a 12 percent increase
in domestic demand of cement every year. But the investors cannot rely on only the domestic
demand of the cement. They have to look for markets abroad.
It is understood that there is no way to get the market abroad without producing international
standard quality cement. BICL. realized this in time. With its quality cement, the management
tried to explore markets in foreign states including India. The Indian state of Tripura responded
first. Verifying the quality of some brands of cement in Bangladesh the buyers from Tripura
agreed to import Bashundhara cement. In this way local cement goes beyond the border.
Growth and Capacity
Currently, the demand for cement stands at 17.5Mn Mt against production capacity of 28MnMt
as of 2013. Industry average capacity utilization stands at 75%, although some major players are
operating at 100% capacity. During 2009 to 2011 period, demand increased at a slower pace
mainly due to slowing down of urbanization and lower investments in infrastructure project.
Planning & Controlling of Bashundhara Cement
Target Market
‘Bashundhara Group’ consists of consumer and retailers who need to store communicate and
complete the marketing process. From the many segments, we choose psychographic
segmentation. Targeted segment consists-
 upper class-heavy users (business tycoons, superstars, media people, ministers)
 upper middle class- medium users (business executives, doctors, lawyers,)
 middle class-light/occasional users

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Target Demand
Bashundhara's daily production capacity will reach 25,000t, according to The Daily Star. The
existing units produce around 14,000tpd. "Our target is to export to the Seven Sister states in
India as the demand of cement in Bangladesh and India's northern states will increase rapidly in
the coming days due to development activities," said Khandoker Kingshuk Hossain, chief
marketing officer.
To implement the project, the company is requesting around BDT7bn of funds from banks. Bank
Asia is leading this syndicated term loan for Bashundhara Industrial Complex, while other
participants include Dhaka, First Security Islami, Pubali, Social Islami and United Commercial
banks.
Findings
Through analysis, I’m trying to find out strong and weak point of the company. Here I find out
strong points more than weak point. The employees of the company are highly qualified. They
enjoy work and do not want to avoid it. The employees of the company work hard to achieve the
organizational goals through self-accept the responsibility without any hesitation. Its market
position is good comparing to others. The working condition of the company is comfortable.
Bashundhara is a reputed group, it has some threats such as competitors, Political instability, Bad
weather, Increase raw material price and so on. Company improved the specific goals for the
planning period this is called goal formulation. Managers use the term goals to describe
objectives that are specific with respect magnitude and times.
Conclusion
Bashundhara Cement is the biggest brand in our country. From above discussion we can say that
the operation management strategy process is effective. Now-a-days it wants to capture foreign
market by producing quality products. Bashundhara Cement wins “Superbrand”. Bashundhara
Cement has been operating quite successfully in Bangladesh for almost two decades now.
Especially the success of Meghna Cement LTD (MCL) they introduce new cement that is
Bashundhara Cement and then continuously BG coming up with high quality products in order to
serve the country and its people. Being the first mover was always an added advantage for BG
but to become the market leader and maintain that position for such a long time deserves a lot of
appreciation too. BICL is quite sound strategically as far as the different functional departments
is concerned. All the departments work in great co-ordination with each other.

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 Bibliography
1. http://www.bashundharacement.com/
2. https://www.cemnet.com/News/story/169549/bashundhara-group-plans-third-
production-unit.html
3. https://www.globalcement.com/news/itemlist/tag/Bashundhara%20Group
4. http://www.bashundharacement.com/article/best-raw-materials-ensure-world-class-
quality-5700-psi-(bangla)

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