Southeast University

A Report on Operations Management Practices in Manufacturing - Walton Company

Final

MGT 517 Operations Management

Instructor: Engr. Sajjadul Mawla.

Section 02

Name: Abdur Rahman Niloy

Id: 2020210004031

Date: 10-10-2021
Executive Summery

Operations management is the process of producing and delivering an organization's products

and services, managing its effective resources. All products or services are the end of the
process. Actions are actions that require a combination of inputs used to change something or
change their functions and projects. And although all actions are justified by this working model,
the change model. However, they differ in the nature of the information and projects.

Because the main reason for this work is to have an in -depth and thorough study of the
operational processes of each product in the organization, so that I can understand these
processes as well. I chose Walton as my role model for my work. In addition, this work gave me
the opportunity to expand my research and learn how production works in an organization,
especially the input-transformation-output process, which is what production, how do they
produce their products, well -regulated products, how do their products regulate prices. This
report lists the boundaries of the world, which is why Walton produces so much, but in this
report I describe the production of TV refrigerators and air conditioners. How do they build and
manage these products.
Table of contents

1. Introduction
2. Organization Overview
3. Discussion and Findings
4. Conclusion
5. References
INTRODUCTION OF WALTON GROUP:

Walton Industries Group was founded by a Bangladeshi group founded in 1977 by SM Nurul
Alam Rezvi as a trading company. As a result, many charities and associations became wealthy
and became foreigners. Today, Walton Walton has factories around the world. with
approximately 21000 employees. If they succeed, they will have a taste that will have new
effects in the future

Now, let’s have a look at the Walton Group at a glance.

Walton Group (A sister concern of R.B Group of Companies LTD.)

Walton Hi-Tech Industries LTD. Chandra,
1.Headquarter
Palikir, Jaipur
2.Company type Trading and Manufacturing company.
Receiving an economic return on its investment and
3.Company`s Objective contribute to the economic development of a
technologically sensitive country like Bangladesh.

4.Owner Bangladesh is the only owner of the company.

5.Certificate ISO 9001:2008 standard certified.
Walton Hi-Tech Ind. Ltd (2,160,000 square
6.Factories feet).; Walton Micro Tech. Corporation &
Walton Corporation Ltd. (Chandra, Kaliakoir,
7.The official business Gazipur.)
1978
started in.
9.A present number of 130 and rising
customer care services
10.The Present number of Over ten thousand worldwide.
employees
11.Target customers Middle-income group
12.Industries involved Electronics, steel, textile & automobiles.
13.Main Market Europe, Africa, Oceania, Mid East, Eastern Asia.
a. Build an automobile and motherboard factory in
Bangladesh. b. Laptop & IC production. c.
14.Near future plans
Semiconductor production from country made raw
materials.
Various products of WALTON group:

Walton Group`s main products are electronics and automobiles. The steel and textile related
products basically assist/aid in the major product`s designing. It has warehouses in other
countries like china etc.

Mission

Based on Walton`s primary structure, it will be the pioneer and strong leader in the electronics
and automobile industry in Bangladesh and worldwide. They can achieve it by-

a. Ensuring quality products to their customers.

b. Ensuring quality services.
c. Enhancing the customer analysis program and giving them proper service by mixing the
management, marketing or other department related decisions for the customer
satisfaction and long-term customer relationship.
d. Elevating the service of customer cares.
e. Implementing an environment that reward team spirit, enthusiasm, innovation, and
friendship.
f. Allocating resource in such a way that will ensure maximum efficiency for Walton.

Vision

Walton vision is `It`s Our Product` or `Amader Ponno`. From a reliable source collect the
elaboration or description of their vision according to which the employee activities aligned. The
elaboration is given below. Highest priority to customers satisfaction providing latest
technology-based world-class electrical, electronics and automobile products with innovative
designs, attractive models, and excellent quality’ (collected) For this good, clear, memorable and
concise mission and vision statement in future Walton group can have access to some great
opportunities.

 Attracting & hiring new talents.

 Increasing the productivity of company while using all of their resources to
implement their strategic plans successfully and efficiently.
 Going one step ahead for being the leading appliances manufacturer in Bangladesh &
worldwide.
 And of course, this well-stated mission and vision statement will help them to build or
enhance the organizational culture

Strategic competency:
Walton group`s strategic intent is to be the global leader in appliances industry. This is not
impossible for near future. Some visitor`s said, some years ago while visiting Walton`s
factories, that Walton will be big like Samsung Electronics one day if they can continue
with their present production and satisfaction rate.

1. Corporate strategy: Exceeding customer expectation can give them more profit.
2. Mixing innovative product features to new market environments & areas and acquire
substantial market share.
3. Promote good corporate image and enhance the distribution channel

OBJECTIVE OF REPORT

To review the distinctive concepts of operations management activities To gather knowledge

about the implication of operations management activities production of WALTON group.
To evaluate the current operational management activities and performances of WALTON
group.

LIMITATIONS OF REPORT

Although I tried my best to make a very good report, some limitations protected me. The biggest
argument I faced - a. When we went to Walton’s production team to get information, they didn’t
cooperate with us because we needed confidential information. B. Insufficient website
information.

METHODOLOGY

The methodologies used in the research process for this report, are:

Data collection

Primary data is the information that collect first-hand and secondary data is the
information collected by others and used by us. For data collection, we used three approaches a.
First, we conducted some field research. We went to WALTON’s factory and asked workers
about manufacturing process. b. searched about Walton on the Internet and found some
important information regarding their company background, product lines, promotional
programs and so on. B. went to an Auditor of Walton, named Salman Musfique, and asked for
some information.

SCOPE OF THE REPORT

The study focuses on how a manufacturing company performs their operation management.
ORGANIZATIONAL OVERVIEW

Walton is the latest multinational electrical, electronics, automobiles and other appliances brand
with one of the largest well-equipped R & D facilities in the world carried out its production
through different subsidiaries under the banner of Walton group headquarters in Bangladesh.
Walton had entered into electronics business in 1994 with manufacturing of electrical and
electronic items and gradually expanded its operation in many other electronics field that provide
the foundation for nearly every aspect of modern life. The key secret behind the success of
Walton lays its variation of production capacity and customized orientation of new product as
per the demand of customer.

OPERATIONS MANAGEMENT ACTIVITIES:

Operations management is defined as the design, operation and improvement of the

systems that create and deliver the firm’s primary product and services.
Importance of production and operations management

Automated Inventory control, Constant customer feedback, Customized product, Personal

service Scope of production and operations management of WALTON Strategic (long-term)
decision-How, where, how much, when etc.

Tactical decision- In Walton, there is 21000+ workers. There are two shifts for workers. They
deliver normally from 8am to 8pm. During Eid they deliver for 24 hours. No Warehouse, No
provident or gratuity fund. But there is Workers Profit Participation Fund. Priority of work
selection is profits are divided into workers equally.

MANUFACTURING PROCESS OF WALTON

Refrigerators and freezers: Walton manufactures world-class refrigerators and freezers at

its modern and fully automatic plant, which is one of the biggest in South Asia.
Refrigerators and freezers are manufactured using latest technology and high-quality
compressors. The technology ensures longer cooling system, low energy consumption and
exact moisture for maintaining food value. Condenser is made of 100 per cent copper in
accordance with international standard. Walton refrigerators offer different models with eye-
catching designs and colors. Spare parts including doors are changeable and available
everywhere in the country. Walton has recently launched world-class refrigerators and freezers
using the nanotechnology to keep food fresh and intact for a longer period of time. All the
Walton models of refrigerators are manufactured using the silver Nano particles which
helps keep food free from many harmful bacteria and unpleasant odors. Some 600,000 units
of refrigerators and freezers are being manufactured at Walton’s factory annually. Besides, its
new production line is going to produce 800,000 units of refrigerators and freezers soon. Walton
has recently planned to manufacture world-class non-frost and luxurious refrigerators,
keeping the taste and demand of customers of developed countries in mind. Walton brand of
refrigerators and freezers hold 70-75 per cent market share of refrigerators and freezers in
Bangladesh. At present, Walton has the capacity of manufacturing 1.4 million refrigerators and
freezers annually.

Outer cabinet and door

 Pieces of sheet metal are either welded or clinched together. Clinching is a process
closely resembling stapling in that the two pieces are crimped together under
pressure, though no additional pieces such as staples are added. If the part of the cabinet
is to be visible, it will be welded and ground down to appear as one piece. The extent to
which the welding process is automated depends on the company and the number of
refrigerators being produced.
  If the sheet metal was not purchased in percolated form, it is now painted. Some
manufacturers use spray equipment to lay a uniform coat of paint on the metal. Others
dip the parts in a paint/solvent mixture before heating them to bake the paint onto the
surface.

Inner cabinet

 The inner cabinet is sometimes made from sheet metal very similar to the outer shell.
Any seams are caulked to improve insulation and looks. WALTON sometimes uses
plastic for inner liners. The plastic liners are vacuum formed. In this process, a thick
piece of plastic slightly larger than the finished part has its outer edges clamped and is
then heated. The hot plastic is next pulled by vacuum into a mold and cooled. After
trimming, the resulting part is ready for assembly.
 The inner cabinet is inserted into the outer cabinet, and the two are snapped together
before the fixtures are inserted. Some tubes and wires are run through the gap
between the two before it is filled with insulation. A dispensing device inserts
foam between the walls. When heated in an oven, this foam expands to add rigidity and
insulation to the cabinet. A similar process is used for the doors.

Cooling system

 The refrigeration components are attached to the cabinet using screws and clips. The
tubing is soldered together, and a protective coating is sprayed on the joints. The order of
this assembly varies between manufacturers and models. The copper tubing from
which the coils (condensers and evaporators) have separately been cut, bent, and
soldered is then attached to the refrigerator as a unit.
 The seal on the refrigerator door is created by means of magnet laden gaskets
that are attached to the doors with screws. Handles and hinges are also screwed onto the
door before its hinges are screwed onto the cabinet. Some adjustment is allowed for
proper operation of the door.

Quality Control

As mentioned above, all subassemblies of tubing that will contain refrigerant are pressure-tested
with nitrogen, which will reveal any flaws in the tubing and in the soldering, that joins it. The
entire unit is also leak-tested prior to charging with Freon. Once charged, the unit is tested as a
whole to ensure that it is capable of reaching design temperatures including those necessary
during the defrost cycle. The unit is operated with sensors inside that determine the temperature
changes over time. Sometimes the refrigerant pressures are also measured. The unit is then
subjected to a final 'sniff test by a machine that detects refrigerant to ensure that no leaks have
developed during testing.

Air-conditioners:
Walton manufactures world-class air-conditioners, ranging between 1, 1½ and 2 tons. At
present, Walton is manufacturing split-type air-conditioners. Soon it will start manufacturing
window-type air-conditioners. Walton brand of air-conditioners are manufactured in combination
with high-quality raw materials and latest technology. Walton air-conditioners, which are
available in different models and colors, contain LED display and 100 per cent copper
condenser. It gives assurance of optimum performances. Quality control is strictly maintained
at every phase of production.

Creating encasement parts from galvanized sheet metal and structural steel

Most air conditioners start out as raw material, in the form of structural steel shapes and sheet
steel. As the sheet metal is processed into fabrication cells or work cells, it is cut, formed,
punched, drilled, sheared, and/or bent into a useful shape or form. The encasements or
wrappers, the metal that envelopes most outdoor residential units, is made of galvanized sheet
metal that uses a zinc coating to provide protection against corrosion. Galvanized sheet metal is
also used to form the bottom pan, face plates, and various support brackets throughout an air
conditioner. This sheet metal is sheared on a shear press in a fabrication cell soon after arriving
from storage or inventory. Structural steel shapes are cut and mitered on a band saw to form
useful brackets and supports.

Punch pressing the sheet metal forms

From the shear press, the sheet metal is loaded on a Computer Numerical Control punch press.
The punch press has the option of receiving its computer program from a drafting
Computer Aided Drafting/Computer Aided Manufacturing program or from an
independently written CNC program. The CAD/CAM program will transform a drafted or
modeled part on the computer into a file that can be read by the punch press, telling it where to
punch holes in the sheet metal. Dies and other punching instruments are stored in the machine
and mechanically brought to the punching arm, where it can be used to drive through the
sheet. The NC press brakes bend the sheet into its final form, using a computer file to
program itself. Different bending dies are used for different shapes and configurations and
may be changed for each component. Some brackets, fins, and sheet components are
outsourced to other facilities or companies to produce large quantities. They are brought to
the assembly plant only when needed for assembly.

Cleaning the parts

All parts must be completely clean and free of dirt, oil, grease, and lubricants before they are
powder coated. Various cleaning methods are used to accomplish this necessary task. Large
solution tanks filled with a cleaning solvent agitate and knock off the oil when parts are
submersed. Spray wash systems use pressurized cleaning solutions to knock off dirt and grease.
Vapor degreasing, suspending the parts above a harsh cleansing vapor, uses an acid
solution and will leave the parts free of petroleum products. Most outsourced parts that
arrive from a vendor have already been degreased and cleaned. For additional corrosion
protection, many parts will be primed in a phosphate primer bath before entering a drying
oven to prepare them for the application of the powder coating.

Before brackets, pans, and wrappers are assembled together, they are fed through a powder
coating operation. The powder coating system sprays a paint-like dry powder onto the parts as
they are fed through a booth on an overhead conveyor. This can be done by robotic sprayers that
are programmed where to spray as each part feeds through the booth on the conveyor. The parts
are statically charged to attract the powder to adhere to deep crevices and bends within each part.
The powder-coated parts are then fed through an oven, usually with the same conveyor
system, where the powder is permanently baked onto the metal. The process takes less than 10
minutes.

Bending the tubing for the condenser and evaporator

The condenser and evaporator both act as a heat exchanger in air conditioning systems and are
made of copper or aluminum tubing bent around in coil form to maximize the distance
through which the working fluid travels. The opposing fluid, or cooling fluid, passes around the
tubes as the working fluid draws away its heat in the evaporator. This is accomplished by taking
many small diameter copper tubes bent in the same shape and anchoring them with guide
rods and aluminum plates. The working fluid or refrigerant flows through the copper tubes and
the opposing fluid flows around them in between the aluminum plates. The tubes will often end
up with hairpin bends performed by NC benders, using the same principle as the NC press
brake. Each bend is identical to the next. The benders use previously straightened tubing
to bend around a fixed die with a mandrel fed through the inner diameter to keep it from
collapsing during the bend. The mandrel is raked back through the inside of the tube when the
bend has been accomplished.

Joining the copper tubing with the aluminum plates

A major part of the assembly is the joining of the copper tubing with the aluminum plates. This
assembly becomes the evaporator and is accomplished by taking the stacked copper
tubing in their hairpin configuration and mechanically fusing them to the aluminum plates.
The fusing occurs by taking a bullet, or mandrel, and feeding it through the copper tubing to
expand it and push it against the inner part of the hole of the plate. This provides a thrifty, yet
useful bond between the tubing and plate, allowing for heat transfer.

Installing the pump

The pump is also purchased complete I h from an outside supplier. Designed to increase
system pressure and circulate the working fluid, the pump is connected with fittings to
the system and anchored in place by support brackets and a base. It is bolted together
with the other structural members of the air conditioner and covered by the wrapper or
sheet metal encasement. The encasement is either riveted or bolted together to provide
adequate protection for the inner components.

Quality Control

Quality of the individual components is always checked at various stages of the

manufacturing process. Outsourced parts must pass an incoming dimensional inspection
from a quality assurance representative before being approved for use in the final product.
Usually, each fabrication cell will have a quality control plan to verify dimensional integrity
of each part. The unit will undergo a performance test when assembly is complete to assure
the customer that each unit operates efficiently.

Televisions:

Walton brand of high-quality televisions, ranging from 19-inch to 55-inch, are

manufactured at Walton Micro-Tech Corporation, another sister concern of R.B. Group.
Walton televisions’ picture quality is so clear, sharp, bright and flicker-free that consumers
have cordially accepted the Walton brand of televisions. As many as 26 different models of
televisions are manufactured at Walton Micro-Tech Corporation. The latest and
sophisticated technology is used to make picture quality sharp, smooth and vivid. Walton
has the capacity of manufacturing one million television sets annually. It offers 3D LED,
LED and LCD televisions at affordable prices. It lasts long and consumes less electricity.
Improved digital technology is used in all models of Walton brand of television.

Housing

Almost all television housings are made of plastic by the process of injection molding,
in which precision molds are made and liquid plastic is injected under high pressure to
fill the molds. The pieces are released from the molds, trimmed, and cleaned. They are then
assembled to complete the housing. The molds are designed so that brackets and supports for the
various components are part of the housing.

Quality Control

As with all precision devices, quality control for the manufacture of the television is a rigid
process. Inspections, laboratory testing, and field testing are performed during the development
of prototypes and throughout manufacture so the resulting television is not only technologically
sound but safe for use in homes and businesses.

OPERATIONS COMPETITIVE DIMENSIONS

Cost: Walton’s product cost is so cheap. Because it’s targeted customers are middle class.
Quality: They look for cost 1st than quality. Reliability: their products and customer cares are
reliable Coping with changes in demand: as they analyze market regularly, the can
change their features into their customer demand. Flexibility and new product introduction
speed is not so good.

 Plant -within – a plant

Walton have different location within a facility are dedicated to different product lines. Each
location is operated according to its own strategy to minimize the confusion associated with
shorting from one type of strategy to another

 Straddling

Walton seeks to match what a competitor is doing by adding features, services, or

technologies to existing activities.

 Order Winner

Walton differentiates the products and services of another company by cost.

 Order Qualifier

They screen product or service as a candidate for purchase.

 Productivity

Their Raw material comes from United Arab Emirates (U.A.E), Katar, china, Korea,
Thailand, Malaysia, Brazil. And they maintain the resources technically and completely.

 Key Performance Indicators (KPI) Md. Mahmudul Haque,the HR manager evaluates

economic performance and spot the need for changes in operations. KPI include financial
measures such as days; cash on hand and operating income by unit or division, as well as
non-financial metrics such as average time to respond to service calls, lead time, or percentage of
sales from new product.

PRODUCT DESIGN

Product design has two main issues-

Product Design Process: Walton has many engineers from BUET and RUET. They design
products, and if the manager approves the design, they proceed for project mission statement.
Product Development Process: Walton have R&D department for development process.

Contract Manufacturer

Walton is capable of manufacturing and or importing all components needed to product or

device. For example, they make compressor of freezer, but they import mobile phones.

Core competency

Walton provides potential access to a wide variety of markets.

It increases perceived customer benefits by developing products as customers demand.

It is hard for competitors to imitate because of its low cost and large R&D sector.

PRODUCT DEVELOPMENT PROCESS

Planning: An engineer plans how to develop product and makes project mission statement.

Concept Development: its target market is middle income people and the price of their
products is comparatively lower than those of competitors. One concept is selected for
further development and testing.  System-level design: a special team designs it.

Design Detail: they keep a design detail to process plan and tooling.

Testing & refinement: finished product sends to BUET for testing that the product will work as
design or not.

Production ramp-up: they train lower level workers weekly or monthly and they sent upper
level workers abroad for training.

Other phases

Platform products: their concept development for computer and other electronics assumes a
proven technology platform.

Quick build products: their detail design and testing phases are repeated a number of times until
the cellular phones are completed or time or budget runs out.

Complex system products: Their subsystem and components are developed by many terms for
automobiles working in parallel.

Industrial Design for the aesthetics & for the user. There are some lacks of industrial design, as
following for Walton-Often injury and Excess feature

Quality Function Deployment (QFD)

Uses market research: Bangladesh with its growing population and economic growth has
huge demand for household products. The fact that only about 60% of the country has electricity
available proves that when electricity will be available throughout the country, demand will
increase further. As the people of this country are mainly price sensitive, Walton, being
the sole manufacturer of refrigerator, freezer and motorcycle, is very keen to meet the
demand of this large market by providing competitive prices. Walton’s primary goal is to
capture the local market, as they are still behind market leader LG-Butterfly. But they are
also exporting their products. Already they have customers in Myanmar, Bhutan and to
expand their market to Africa.

House of quality

Walton product design team translates customer requirements into operating and engineering
goals. Like-every customer can get high quality product they can get their necessary product
from any showroom. They get warranty and guaranty; they can buy their product in a cheap rate.

Value analysis/ value engineering Cost accounting Department of Walton simplifies products
and processes by achieving equivalent or better performance at a lower cost.

PRODUCT PRICING

Price decisions must be coordination with product design, distribution, and promotion
decisions to from a consistent and effective marketing program. Pricing for WALTON
products: In case of the product Refrigerators and Freezers, WALTON Hi-tech Industries ltd..
has adopted the following price on the basis of following formula- Selling price = Landed cost
(LC) + Administrative cost + Transportation cost +Warehousing cost + VAT + Profit margin.

LOGISTIC AND TRANSPORTATION MANAGEMENT

Channels distribution of WAL TON Products

Production and distribution network: Mass Customization and Increased co-production of

goods and services are controlled by Research and Development sector of Walton. “Any
sequence of institutions from the producer to the consumer including one or any number
of middle men is called channel of distribution”-Mc Carthy. Producers normally use a
number of marketing intermediates for taking their products to users. Marketing intermediaries
bear a variety of names such as: sole selling agents, stockiest, Wholesalers, franchised
dealers retailers, authorized representatives, brokers/ commission agents and jobbers. All
such intermediaries constitute the distribution channel. The depots/ showrooms and other
direct outlets of producers also from part of distribution channel. Manufacture Channel’s
Distribution Consumers Role and Important of distribution channels Distribution channels
play a pivoted role in the successful marketing of most products especially consumer
products. Channel perform a wide variety of functions the important of distribution channels can
be understood clearly by analyzing the wide variety of function perform by them. Channels
provide distribution efficiency to manufactures. Channels supply products in required
assortments.Channels provide salesmanship. Channels help merchandise the products.Channels
look after physical distribution and financing functions. Channels decisions have a vital
bearing on decision on other areas of marketing. Channels act as change agents and generate
demand. Channel levels. Channel members. Channel length.

Current Issues in operation management

They have specialized engineer for Out sourcing, Global supplies: Walton pursues its 21st
century vision of becoming a true universal digital brand through innovative design, latest
technology and proper customer satisfaction. Walton set its vision to take a place among the top
electronics, automobiles, and telecommunication Industries in the world by 2015. The products
of the company have acquired a significant local market share and are also exporting to
different countries in the world like United Arab Emirates, Myanmar, Sudan, Qatar etc. And
they are prepared for huge market access to Australia, Singapore, Poland, Romania,
Ethiopia, Saudi Arabia, South Africa, Oman, Kuwait, Yemen, Bhutan, Nepal, Bahrain, Nigeria
and Ghana.

Conclusion

Operations management impacts the overall productivity and profitability of any business
enterprise. It measures the efficiency of managers and other workers, hence accelerating
individual and company’s progress. Operations management is the company’s engine room
where prudent decisions and plans emerge. Lack of proper operations management can cause
problems in product design and delivery failures. In any enterprise, a well-designed operations
plan is the pillar and strengthens the probability of fulfilling and shipping orders on time,
keeping customers happy and fuelling the company’s success.
References

https://waltonbd.com/

https://www.openbusinesscouncil.org/operations-and-operations-management-in-business/

https://www.studocu.com/row/document/advanced-research-methodology/oerations-
management-report/1212003

https://www.emerald.com/insight/content/doi/10.1108/01443570010330801/full/html

https://en.wikipedia.org/wiki/Walton_Group