Final Report

Course Title: Production Management

Course Code: MGT314
Section: 24

Submitted to
Iqtiaruddin Md. Mamun (IMM)
Department of Management
North South University (NSU)

Submitted By

Team Laterals

Name ID
Tanmim Chowdhury Shreya 1831053030
Tasnim Alamgir Adiba 2131106630
Tahmid Shah Nafi 2111562630
Sabbir Hasan Malum 2131365630
S.M. Yeasin Tahmid 2211698030
Executive Summary

This report provides an overview of Shah Packaging Industry Limited, a b2b cardboard box

manufacturing company in Dhaka, Bangladesh. They have successfully operated for 17 years,

specializing in making cardboard box for product making companies. They serve a wide range of

clients. Efficient forecasting techniques such as liner equation techniques are used. The report

will include a detailed overview of their capacity management, process type and observations.

Recommendations for improvement include comprehensive training programs, pursuing

industry-recognized quality certifications, implementing technology tools for quality control, and

addressing worker motivation. By implementing these recommendations, Shah Packaging

Industry Limited can further enhance its operations, maintain its reputation for quality, and

ensure long-term success in the highly competitive packaging industry.

 Table Of Content

Serial Headings Page

No No
1 Company Description 01

2 Forecasting 02-04

3 Company Panning 04-06

4 Process Selection and Facility 06-08

layout
5 Quality Control and Management 08-10

6 Problems in the Supply Chain and 10-11

Solution
7 Conclusion 11
Company Description:

Shah Packaging Industry Limited is a Dhaka based Bangladeshi packaging company that

manufactures. It was started in 2006, at Demrah. Shah Packaging Industry Limited, a pioneering

force in the packaging sector, has established itself as a market leader renowned for its

innovative solutions and unwavering commitment to excellence. With a history of delivering

top-tier packaging products and services, Shah Packaging Industry Limited continues to redefine

industry standards, setting new benchmarks for quality and reliability. It is a B2B form of

business, indicating commercial transactions that occur between businesses rather than between

businesses and individual customers. It's basically exchange of products, information or services

between two or more businesses. Rooted in a client-centric approach and driven by a passion for

cutting-edge technology, the company remains dedicated to providing tailor-made solutions that

meet the diverse needs of its clientele.

Shah Packaging Industry Limited was founded by Mr. Shah Abdullah Al Baki. Before founding

this company, he was associated with another packaging company called Bengal Corporation. In

2005, he left the Bengal Corporation and the next year he started his sole proprietorship and

named it under his family name.

Shah Packaging Industry Limited often gets larger quantities orders by companies like Partex

Beverages, Partex Furniture, Globe Soft Drinks, Danish Condensed Milk Bangladesh Limited,

SAMS Attire Limited, Walton (Television), Shezan Soft Drinks, Bengal Furniture etc.

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Forecasting

A statement about the future value of a variable of interest is basically forecasting. The level of

demand and degree of accuracy are important for forecasting

Shah Packaging Industry Ltd. is a packaging company in Bangladesh. They used a liner equation

technique for their forecasting. They have expert employees and software system which help

them to count their transportation lane. We talk to them and collect a data sheet about their actual

demand in last month. We consider 7-week production.

Where, a = ft at t=0

b = the slope of line

t t^2 y ty

week

1 1 20 20

2 4 19 38

3 9 25 75

4 16 21 84

5 25 24 120

6 36 18 108

7 49 24 168

∑ t=28

2
 ∑t^2 = 140 ∑y= 151 ∑ty = 613

( ∑ t )^2 = 784

b = 7*613-28*151/7*140-784= 0.32

a= 151-0.32*28/7= 20.29

Ft = 20.29+0.32t

For the 8th week forecasting:

Ft= 20.29+0.32*8 = 22.85

For the 9th week forecasting:

Ft= 20.29+0.32*9 = 23.17

For the 10th week forecasting:

Ft= 20.29+0.32*10 = 23.49

Week Actual Forecasting E |E| E^2 ∑E ∑|E| ∑E^2 MAD Tracking

signal
demand

1 20 18 2 2 4 2 2 4 2 1

2 19 23 -4 4 16 -2 6 20 3 -1.3

3 25 22 3 3 9 1 9 29 3 1

4 21 17 4 4 16 5 13 45 3.2 1.25

5 24 20 4 4 16 9 17 61 3.4 1.17

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 6 18 24 -6 6 36 3 23 97 3.83 -1.55

7 24 19 5 5 25 8 28 122 4 1.25

As we can see in this chart, the tracking signal difference is in ±7. If this amount exceed ±7 that

we can say there has a problem but as we can see the tracking signal is not exceed ±7 so we can

assume that there technique of forecasting is correct.

Capacity Planning:

Shah Packaging Industry LTD has a total of 8 machines. Each machine is run for 8

hours per day and 48 hours per week according to International Labor Law. The

factory needs a workforce of 24 people each day to meet their targeted production.

However, if the target is not met, then workers do overtime for which they are

compensated separately apart from their monthly salaries.

Shah Packaging Industry plans its capacity in the following way:

The factory uses the ‘Leading’ strategy to plan its capacity which states that at first it forecasts

its demand and then plans to anticipate its capacity. Each machine produces 104 units of output

per day which means that if the machines are utilized properly, the factory can produce 24960

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units (104*8*30) monthly. However, the factory produces cartons based on the number of

orders. The factory produces 7 ply cartons which cost 100 BDT per unit and sells at 140 taka.

13 13 13 13 13 13 13 13

units/hour units/hour units/hour units/hour units/hour units/hour units/hour units/hour

1st 2nd 3rd 4th 5th 6th 7th 8th

Machine Machine Machine Machine Machine Machine Machine Machine

● Each machine produces 13 units per hour

● Per day 8 hours of production thus (8*13) = 104 units per day

● 1 machine= 104 units therefore 8 machines = (104*8) =832*30=24960 units monthly

The company claims that if the demand is equal to the capacity, the company

aims to earn a monthly revenue of 35 lakh BDT. (Approximately)

Sales Revenue =

Quantity*Price per unit

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 =24960*140

=3494400 taka

Process Selection and Facility Layout

Process selection, and layout of facilities because they have long-term consequences for business

organizations, and they impact a wide range of activities and capabilities.

Processes convert inputs into outputs; they are at the core of operations management process

selection refers to deciding on the way production of goods or services will be organized.

That’s why Shah Packaging Industry limited choose the Repetitive Process selection.

Because the product itself has

1. Higher volumes of more standardized goods or services

2. The standardized output means only slight flexibility of equipment

3. Skill of workers is generally low.

Shah packaging industry choose this process because the product has low variety, low unit cost

and higher volume

Layout refers to the configuration of departments, work centers, and equipment, with particular

emphasis on movement of work (customers or materials) through the system. Have a significant

impact on the cost and efficiency of operations

There are some reasons for redesign of layouts which our industry follows;

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  Inefficient operations (e.g., high cost, bottlenecks), accidents or safety hazards,

 Changes in the design of products or services

 Introduction of new products or services

 Changes in the volume of output or mix of outputs,

 Changes in methods or equipment,

 Changes in environmental or other legal requirements,

 Morale problems (e.g., lack of face-to-face contact).

The basic objective of layout design is:

1. To facilitate a smooth flow of work, material, and information through the system

2. To avoid bottlenecks

For Shah packaging industry, the layout is Product layout. Product layouts are most

conducive to repetitive processing. And the Industry uses the Repetitive Process selection.

DESIGNING PRODUCT LAYOUTS: LINE BALANCING:

The process of assigning tasks to workstations in such a way that the workstations have

approximately equal time requirements.

Line balancing involves assigning tasks to workstations. Usually, each workstation has one

worker who handles all of the tasks at that station.

8 hours per day, the machines are working to produce the final product and 8 machines are

responsible to make the final product.

Our output is 750 units per day and machine works for 8 hours which is 480 minutes per day.

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So, the cycle time = 480/750 = .64 min / per unit

A >>> B >>> C >>> D >>> E >>> F >>> G >>>H

This is the diagram of the workstation of Shah Packaging Industry Limited.

Quality Control and Management

Every company has to maintain some quality standards to keep up with the competition in the

market. A company's capability to function can be affected by failing to maintain the standard.

Therefore, Shah Packaging Industry LTD gives their utmost attention to their quality control

process. They produce mainly carton boxes, which are made from paper. The quality of the

product differs from buyer to buyer. So, the company maintains their product’s standard

according to buyers’ orders, but there are also some procedures the company takes to maintain

the quality of the product compared to market standards.

 Shah Packaging Industry LTD takes the order first, and then they start their production.

Different buyers need different standards of products. So, they first inquire about the

requirements of the buyer and then deliver a sample product. If the sample is approved,

they take the order and start production.

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 They are in the packaging industry, so their main raw material is paper. The papers they

use for their products are bought from their trusted suppliers. They choose the quality of

the papers according to the buyer’s needs.

 Before they start production for an order, they check the strength and moisture level of

the papers. They use imported machines with higher accuracy to check the moisture

level. After that, they use die-cutting equipment to cut the papers in accordance with the

buyer's requirements.

 The final stage of their production is gluing and folding. For this work, Shah Packaging

Industry LTD uses very well-trained workers alongside high-quality folding and gluing

equipment. Then the box goes through a drying and curing process to maintain the shape

and integrity of the product.

 There are always some finished products that do not meet the buyer's requirements. So,

they sell those products as rejects to some local vendors because reusing them will lower

their quality from the standard.

 The Shah Packaging Industry always looks for better and more advanced production

equipment and machines in the global market to deliver the most quality product to

customers. They also arrange training workshops so the workers can work to their full

capability.

 They always keep in contact with buyers about product quality and where they can

improve it. The suppliers also get to know if there is any dissatisfaction with the raw

materials.

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  Some orders require printing logos or other pictures. They make sure the printing process

is working correctly and check if there is any product that is not printed properly. The

product that is not printed properly is sold with the rejected product.

Quality control and management are the most important functions a company wants to sustain in

today’s competitive business world. Quality control and management are necessary for

consistency, customer satisfaction, cost reduction, and operational efficiency. The manager of

Shah Packaging Industries LTD enlightened us with their quality control process, which is the

reason for their loyal and repeat customers. He also added that they try to improve their quality

control process so that they can always get customer satisfaction and maintain the market

standard for their product.

Problems in the Supply Chain and

Solutions:

● Forecasting: Any company’s forecasting the most important thing is the demand and the

accuracy. Forecasting is very important for their company for their betterment. There

forecasting is good their accuracy level is also good. If they use this linear tread

forecasting technique it might be good for their forecasting and has possibility to be more

accurate.

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 ● Capacity Planning: Although the company's factory is capable of manufacturing 800

units each day, they are now only turning out 700. Only by producing the maximum

quantity of 800 units they will be able to meet their profit target of 35 lacs bdt. Therefore,

they need to set up new machinery to make best use of their production facility.

● Quality Control and Management: Their quality control process is effective but very

traditional. Since the world is becoming more and more reliant on technology, we

recommend Shah Packaging Industry Limited take into account implementing

technological quality control tools for improvement. It will help them maintain their

quality more quickly and efficiently.

Conclusion:

In the above report, we have successfully raised a vivid picture of the supply chain management

system of Shah Packaging Industry Ltd. and the related issues of the supply chain. We have tried

to focus on each and every part of the supply chain, starting from manufacturing until the

delivery of products, to show how effectively they have planned their supply chain to satisfy the

demand of customers and maintain the competition in the market. However, the system has a few

problems associated with it, which require improvement. We, therefore, have also tried to clear

out the problems by providing preferable solutions.

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