BBB 2163 OPERATION MANAGEMENT

INDIVIDUAL ASSIGNMENT

Faculty of Business Management

This assignment carries 25% weightage towards the final grade.

& Globalisation
Instruction for Submission of Assignment: 30 Nov 2021.

Name:

Student ID:

Table of content
1. Type of business.................................................................................................................3
1.1 Why chooses the business?.........................................................................................3
1.2 Characteristics of manufactured product.....................................................................5
1.3 Operation Process of Disposable Latex Gloves..........................................................6
2 Maintenance........................................................................................................................8
2.1 Preventive maintenance...............................................................................................8
 2.2 Why choose preventive maintenance?........................................................................8
3 Layout Strategy...................................................................................................................9
3.1 Objective of chosen layout..........................................................................................9
3.2 Type of layout............................................................................................................10
3.3 Precedence Line.........................................................................................................11
4 References.........................................................................................................................12

1. Type of business

1.1 Why chooses the business?

There are many things to consider when starting a business, and the most important one is to
choose the right type of business you. It can directly affect the future development of a
business. There might be gains in the business in the short term, but in the long run, there is a
high probability that the business will face losses or even close down. For example, natural
fuels will gradually be replaced or even eliminated in the future as people are striving to
conserve the environment.

Disposable latex glove has been chosen as the product to sell in this proposal. There
are a few considerations in selecting the nature rubber glove as the set-up product in this
proposal. Those considerations are market demand, technology accessibility, and raw
material accessibility. Some other elements to be considered when choosing the right product
or service for a business are the government's policy, the domestic and international business
environment and the competition in the specific market.

a) Market demand for the rubber glove

The pandemic has gradually increased the market demand for gloves, making
gloves an essential item. Beyond the pandemic, the need for gloves in the market has
increased due to the increasing demand for high-quality medical services. The
pandemic and the growing need for high-quality medical services are the keys to
maintaining long-term demand for gloves. People will still be cautious even after the
pandemic. Thus, the market demand for gloves is unlikely to decrease if the PPE has
become an essential item to the people. [ CITATION Aym21 \l 2052 ]

The Star reported that the Malaysian rubber industry, which recorded
exceptional performance in the first half of 2021, is expected to maintain its
momentum and reach a new high this year as demand for gloves is projected to stay
strong. The English-language newspaper publisher interviewed Malaysian Rubber
Council (MRC) chief executive officer Nurul Islam Mohamed Yusoff, who claim that
the high demand for rubber gloves will stay strong even though the vaccination levels
are increased in most of the country.[ CITATION The21 \l 2052 ] According to
Fortune Business Insights, the pandemic has drastically caused the personal protective
equipment market to expand.

A lot of data and reports have consistently given that the epidemic has
increased the demand for gloves. The world after the pandemic will also focus on
 providing high-quality medical services. Gloves as one of the most common the
personal protective equipment (PPE), its demand is expected to increase in short term
as well as in the future.

b) Technology accessibility

Malaysia is one of the biggest rubber gloves producer in the world with
addressing 65% off supply needs in the world.

Malaysia's leading global manufacturer has invested heavily in research and

development (R & D) for innovative product innovation and advances in high-end
technology in manufacturing using artificial intelligence, big data and other
technologies help reduce the production highly rely on labour. Due to technological
advances, the production of gloves has increased from 3000 gloves per hour in 1988
to the current standard of 45,000 gloves per hour. Players in the industry are working
to achieve breakthrough speeds through increased automation. Automation appears to
be 85% while the last mile of automation is in progress. The productivity of some
state-of-the-art factories is currently 1.7 workers per million gloves. This will be
further reduced to 1.5 workers per million gloves by 2024. In 2009, there were 10
workers for every 1 million gloves. Industry insiders have also taken the lead in
promoting capacity building for locals and launching programs to encourage local
workers to enter the industry. [ CITATION The211 \l 2052 ]

Malaysia itself has the technology to produce gloves, which benefited local
glove manufacturers to access to this technology more easily. It is because they do not
need to import technology from foreign countries, importing technology requires a
very high cost. If Malaysia can continue to become a major producer of rubber gloves,
then the country can have more advanced glove production technology. This is
undoubtedly very good news for many local manufacturers.
c) Raw material accessibility

As a result of technological advances, geochemically lacking raw materials are

becoming the worst in human life. The worry about the security of raw material
supplies is increasing because no trend reversal is visible. The collection of many raw
 materials is that (i) production is concentrated in a small number of countries, (ii)
opportunities for suitable alternatives are limited, and (iii) the recycling rate of these
materials is very low.[ CITATION DWi17 \l 2052 ]
The shortage of raw materials is likely to cause inflation at the national level,
while at the manufacturer level, it will lead to the operation disruption. This problem
will cause the manufacturer to face losses. Therefore, it is important to make sure that
the raw material supply is consistent. A manufacturer should not only consider the
supply of raw material in current situation, yet they have to consider every possibility
in the future that can disrupt the supply.
Malaysia is the world's fifth largest producer of natural rubber after Thailand,
Indonesia, Vietnam and China. Natural latex is rubber, and synthetic rubber is a
petrochemical product. The primary raw material used in making the rubber gloves is
latex. Since Malaysia is one of the biggest producers of rubber globally, the rubber
gloves manufacturers have the advantage in getting raw material at a relatively low
price compared to other rubber gloves manufacturers in another country. Local glove
manufacturers do not need to worry too much about the shortage of raw materials.
When a manufacturer got economic resource advantages, it can be more competitive
in a specific industry in terms of the price.

1.2 Characteristics of manufactured product

Disposable gloves are an essential part of any personal protective equipment (PPE) plan in
the workplace. It not only protects the operator's hands from hazards, but also prevents cross-
contamination of people, products, equipment and surfaces with potentially hazardous
substances. Due to the natural properties of latex, disposable latex gloves are highly elastic,
tear-resistant and have a barrier against biological hazards such as bacteria, viruses and
various chemicals. The stretch and second-skin feel allow the wearer to exhibit high agility
and touch sensitivity. They are traditionally used in medical settings such as dental surgery,
hospitals, veterinary surgery, tattoo studios, etc. Despite some of the shortcomings associated
with latex gloves (including latex allergies), they are still one of the most popular disposable
gloves available. Uni gloves manufactures a wide range of disposable latex gloves with a
variety of designs and benefits to provide the perfect latex glove for your application.
1.3 Operation Process of Disposable Latex Gloves
a) Latex collection
Latex is white milky water (latex protein) from rubber trees or shrubs from natural
and hybrid trees or shrubs. The company usually obtains liquid latex from the plastic
market or buys it from its own silicone farm. Natural rubber latex cures quickly.
Therefore, rubber trees must be harvested immediately and sent to the factory for
production. After the latex is delivered to the factory, the technicians produce the
latex according to the standard method established by the company.

b) Coagulant impregnation
The gloves are cleaned in advance, then covered with a coagulant (calcium nitrate)
and soaked in the coagulant shower to make the latex mixture adhere to the gloves
and evenly disperse the latex. The glove former is immersed in the coagulant reservoir
under the control of the staff in order to extract healthy proteins from the previous
glove infusion in each production cycle.

c) Drying
Drying is a link in the manufacturing process of latex gloves. The coagulant turns the
liquid latex film on the glove former into a wet gel, and passes through a series of
ovens to dry the gloves and stop the coagulation process. In short, this is an activity
that involves drying gloves, from wet gloves to ready-to-use gloves.

d) Latex dipping
This is one of the latex glove processing stations, and the aquarium is filled with
synthetic latex. When trapped in this aquarium, the latex coating becomes a glove.
The thickness of latex gloves can be adjusted according to the degree of coagulation
and soaking. The longer the gloves stay in the coagulant aquarium, the thicker the
latex gloves. Manufacturing ensures the high quality and safety of latex gloves. In the
medical industry, these gloves are considered the safest and best.

e) Leaching
This leaching step can be referred to as pre-vulcanization leaching. This is also called
"wet gel leaching." When the latex mixture dries, the chemicals and proteins
remaining on the top of the glove will be washed away. Brands with longer washing
times can clean latex protein more effectively. In addition, the aerated water must be
hot and fresh enough to better dissolve the protein. This is an important step to reduce
the sensitivity of latex. The temperature of the water in the bladder, the duration of the
process, and the normal rate of water exchange affect the efficiency of the process. A
good leaching line can produce high-quality latex gloves.

f) Beading
Beading is a process that uses up to 12 chemicals to facilitate the next process of
making latex gloves. The added chemicals are antioxidants that prevent heat, moisture
and ozone from breaking down the rubber molecules in the final product. Chemical
accelerators are also added to help control other vulcanization processes.

g) Slurry dipping
This level is also called "wet uniform pulverization". The slurry reservoir containing
the cornstarch solution can prevent latex gloves from sticking to the reservoir.
Suspensions are usually called wet powders. The great thing about this powder is that
it helps protect and wear latex gloves. Latex gloves have to go through more ovens to
allow more drying and additional rinsing as the tool removes dirt. The process of
removing the powder is to avoid allergic reactions to latex.

h) Stripping
At this level, latex gloves are separated from the glove former. Automatic peeling
machine to remove latex examination gloves. This fully programmed peeling machine
enables manufacturers to improve the quality and safety of the latex gloves they
produce. Our technicians send the latex gloves to the next step of the latex glove
processing process for final drying.
i) Packaging
Packaging is the final step in making latex gloves. Employees can take their latex
gloves and wrap them in a backing layer so that the gloves can be easily distributed,
avoiding the hassle of removing the latex gloves from each glove. This packaging
method reduces emissions and allows for easy removal of latex gloves from the
packaging. For example, napkins can be quickly dispensed into the napkin area, and
this idea applies to latex glovebox dispensers. All glove manufacturers often use this
 hierarchical approach. Finally, after all production functions have been completed, the
latex gloves are stored in warehouses for labelling and then shipped to specific
customers. During the pandemic, the company exports gloves to many remote
countries with poor health care.

2 Maintenance
Maintenance is one of the most vital aspects when running a business. However, people tend
to ignore its significance to the business, and they pay more for the repair costs. That is
because the frequently-used equipment in the factory has a high probability of malfunction if
they have not been taken care of well. Therefore, maintenance is the way to lengthen the
lifespan of the business's most valuable assets and avoid the loss of business due to
equipment or machinery misfunction.
2.1 Preventive maintenance

I have chosen a preventive maintenance strategy for this business proposal.

Preventive maintenance is defined as taking preventive actions or actions before equipment
failures actually occur. Preventive maintenance usually includes periodic inspections,
upgrades, proper lubrication (if applicable), adjustments, and replacement of obsolete
equipment or parts. Preventive maintenance can be implemented in many areas of the
business, including replacing water filters, regular cleaning of critical equipment (such as
refrigerator condenser coils), inspection of commercial vehicles (such as delivery vehicles),
and charging and charging checks.

2.2 Why choose preventive maintenance?

There a lot of benefits of using preventive maintenance. The first benefit is to minimize
downtime and plant closures due to unplanned equipment failures helps avoid financial losses
and protect profits. Moreover, it can help to extend the life of your critical equipment and
assets. For instance, preventive maintenance involved the process of inspecting, upgrading,
and maintaining business assets which can reduce the cost of new equipment in the long run.
Last but not least, it can reduce energy consumption of business assets. Therefore, lower
utility bills for the business by reducing the energy required for equipment to operate
optimally.

3 Layout Strategy
The layout and design of a manufacturing facility is an important part of the work of
the entire company, whether it is maximizing production efficiency or meeting the needs of
its employees. The main purpose of layout is to ensure the smooth flow of work, materials
and information in the system. The main meaning of the object is the space where corporate
activities take place. The layout and design of a space has a major impact on how a system
works, not on the flow of materials and information. The key to proper plant planning and
design is to integrate the requirements of people (people and customers), materials (raw
materials, finished products, and manufacturing processes), and equipment to create a
consistent and functioning system.

3.1 Objective of chosen layout

a) Increase output
In order to generate higher returns, it is very important for glove manufacturers to
increase production. That is because the price of gloves is low, the only way to have
a better return is to increase production.
b) Utilization
I aim to use layout to promote the utilization of resources, such as space,
equipment, manpower, and so on. If these resources are not utilizing properly, the
company will waste a lot of resources and lost the chance to increase revenue.
When resources can be used wisely, the efficiency of the company will be greatly
improved.

3.2 Type of layout

The layout that had been chosen is the product layout. The product layout is one of the
three main production and manufacturing layout. In this layout, the workstation's
arrangement of equipment and processes is distributed around the requirements of the final
product. Each station is given small tasks that must be completed in a specific order. Once
this is done, the workpieces are transferred to the next workstation in sequence for further
assembly.
Even though both the product layout and process layout how their significance and
several similarities, few differences are also available between them. These differences need
to know while choosing which layout is perfectly apt for a particular industry. Product layout
has a structured arrangement of various machines that concentrate on producing a single kind
of final product. Here the output of One machine at one step will become the input for the
other machine. Whereas the process layout has various missions but each mission can
produce different products and there is no restriction that it should be continuous.

Material
Preparing
Boiler Room
Room

Glove
Machine
Line

Water
Treatment Packing
Line Room

Figure 1: Product Layout for Glove Factory

3.3 Precedence Line

Latex Coagulant Latex

Drying
collection dipping dipping

Slurry
 Packaging

Figure 2: Precedence Line of Disposable Latex Gloves

4 References
D.Williamsb, S. R. (2017). A framework for evaluating the accessibility of raw materials
from end-of-life products and the Earth’s crust. 534-546.
doi:https://doi.org/10.1016/j.wasman.2017.05.043
Medina, A. F. (2021, Sept 6). ASEAN BRIEFING. Retrieved from Opportunities in
Malaysia’s Rubber Glove Industry:
https://www.aseanbriefing.com/news/opportunities-in-malaysias-rubber-glove-
industry/
The Malaysian Reserve. (2021, Sept 29). Retrieved from The way forward for Malaysia as
global rubber glove innovation centre:
https://themalaysianreserve.com/2021/09/29/the-way-forward-for-malaysia-as-global-
rubber-glove-innovation-centre/
The Star. (2021, Aug 12). Retrieved from Demand for gloves to stay strong:
https://www.thestar.com.my/business/business-news/2021/08/12/demand-for-gloves-
to-stay-strong