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PROMINENT METALS

“THE NOT SO MEDIOCRE


GROUP”
GROUM MEMBER’S DETAILS
1. Rifat Ara Tazree ID- 1712168630
2. MD. Imran ID- 1712955630
3. Robin Rahman ID- 1711948030
4. Samman Haque ID- 1711102030
COMPANY PROFILE
Founded by Mr Ahmed Rashid Lali in 1993. Located in South Panishail, Zirani, Gazipur.
They are mainly a B2B. They company has been in operation for 26 years. They have set a
industry standard in tin container manufacturing.

They manufacture tin containers for various companies such as Pran and other local ones.
They use the highest quality of raw materials to ensure that their containers quality don’t
differ.

Their main goal is to provide the best quality tin containers even at the expense of low
profit margins
INDUSTRY ANALYSIS
Threat to new entrants low as large amount of
capital is required and the market is already
saturated.

Low product differentiation therefore supplier


power is low and can be substituted easily.

Buyer power is high as they can hop from company


to company.

Threats of substitute is high. Specialization required


to avoid this threat.
PROCESS SELECTION AND LAYOUT
• It specializes in manufacturing tin containers for mustard oil for the local market of Bangladesh.
• ‘Prominent Metals’ follows the Batch process method
• Batch Process: The company’s machineries are placed on a single floor sequentially divided in two
sectors (rooms).
• The raw materials (tin plate) slitting, printing and roll forming takes place in one room.
• The wielding, flanging, lid and bottom seaming process in another room.
• A company’s layout play a big part in operations being carried out smoothly and efficiently
• Prominent Metals uses Process layout design which compliments their Batch process method.
Process Layout
Department A Department B Department C Department D

Raw Slitting tin


Roll
materials plates and Welding
forming
(Tin Plate) printing

Department E Department F Department G Department H

Lid Bottom
Flanging Seaming Packaging
Seaming   
 
   
SUPPLY CHAIN MANAGEMENT
Copper
Ink
Wire

Plastic
Burnish
Cap

Tin Plates
Tin Food
grade
container grease
VENDOR ANALYSIS

Vendor analysis is done Strengths and weakness


Dependent on vendors’
to assess the ability of of each vendor is
ability to meet their need for
both prospective and identified. They also
production procedure.
existing vendors. look at information such
Quality requirements and their sales, reputation,
lead time is provided . services, lead time etc.
and choose a vendor
fitting.
Raw Suppleirs
Materials

Indian Tin Box


Tin plates
Mfg Co Pvt Ltd.

Ink Ganga Inks

Copper wire Local supplier

Food grade Local supplier


grease

Burnish Local supplier

Plastic caps Local supplier


• KRAJLIC MATRIX
THE RELATIONSHIP BETWEEN THE COMPANY AND ITS
SUPPLIERS SHOULD BE WELL DISTINGUISHED AND KNOWN.

• THE KRALJIC MATRIX DESCRIBES THE RELATIONSHIP OF A


COMPANY AND ITS SUPPLIERS SEGMENTED INTO FOUR
CATEGORIES BASED ON FINANCIAL RISK AND SUPPLY RISK.

• PROMINENT METALS KRALJIC MATRIX SHOWS THE FOLLOWING


RELATIONSHIP.
  Strategic Items
Leverage Items  Side seam welding
machine
High
 Lathe machine
 Flanging machine
 Screen printing machine
 
Financial Risk

   

Routine Items Bottleneck Items


 Copper Wire  Tin Plates
 Burnish  Ink
Low

 Food grade grease


 Plastic caps

Low Supply Risk High


Obligations Goodwill Trust
COPPER WIRE,
BURNISH, FOOD
Relationship Type

GRADE GREASE,
Competence Trust PLASTIC CAPS

TIN PLATE, INK


Contractual
Trust
LATHE MACHINE

Arm’s length

Short Medium Lon


g
INVENTORY MANAGEMENT

Inventory management is a core operation management activity


Poor inventory management hampers operations, diminishes customer
satisfaction, and increases operating costs

Classifies inventory into two category

Raw Materials Finished Goods


•LEAD TIME
• RAW MATERIALS ARE NEEDED TO BE ORDERED BEFOREHAND.
• LEAD TIME FOR DIFFERENT RAW MATERIALS ARE AS FOLLOWS:
Raw Material Lead time

Tin plate 1 month


Ink 6 days
Copper wire 3 days
Burnish 2 days
Plastic caps 1 day
Food grade grease 1 day
INVENTORY MANAGEMENT SYSTEM
• PROMINENT METALS USES REQUIRED MATERIAL
PLANNING AND PERPETUAL INVENTORY SYSTEM TO
MANAGE THEIR INVENTORY

• BASED ON THE ORDER SIZE OF CONTAINERS THE


MANAGER PLACES THE ORDER OF RAW MATERIALS
REQUIRED FOR PRODUCTION.

• INVENTORY IS RECORDED WHEN THEY ARE


PURCHASED AND USED IN PRODUCTION OR
DELIVERED MANUALLY
CAPACITY MANAGEMENT
Production Capacity 3500
• Daily production capacity is
3000
1500 units of container
• This has increased from being 2500

1000 units of containers per 2000


day over the years 1500
• Factory operates at 75-80% 1000
capacity with a total of
500
14hours of production per day
0
Previous Current Target
Capacity Demand Production

The above graph the comparison among the demand and actual
illustrates capacity, production.
The above graph illustrates the comparison among the
capacity, demand and actual production:
• The company previously produced 800 containers per day
whereas the demand was 1700 containers per day.
• Their total capacity has always been lower than the actual
demand.
• The aim to increase production capacity to 3000 units in the
near future.
STORAGE CAPACITY
• THE COMPANY HAS LIMITED STORAGE CAPACITY.
• AS THEY HAVE NO ADDITIONAL SPACE FOR A
WAREHOUSE, THEY STORE THE RAW MATERIALS AND
THE FINISHED GOODS IN THE SAME FACILITY USED FOR
PRODUCTION

• FINISHED GOODS ARE STORED IN A ROOM WHICH HAS A


MAXIMUM CAPACITY OF 20000 UNITS OF CONTAINERS.

• WITH THE PLAN OF INCREASING PRODUCTION


CAPACITY MORE STORAGE SPACE IS GOING TO BE
REQUIRED.
Quality Management

Quality management is the act of overseeing all activities and tasks needed to
maintain a desired level of excellence, creating and implementing quality
planning and assurance, and quality improvement

They thoroughly check the quality of the raw materials before start of
production
This quality check is done by the manager in majority of the cases
• Quality Control
• Raw Materials
• Although the raw materials are supplied through reliable supplier they
still go through selection process
• The manager checks the quality of them individually to ensure that
production can start right away
• For ink the colour grade is tested by running a few sample prints
 
Quality Assurance
Production inspection
• After the tin plates are sliced and printed they are rechecked for accurate
measurements.
• If the measurement is incorrect ,it is send to the slitting machine again to correct
the size.
• A test is conducted to check for any leaks in the container.
Employee Training
• Workers are trained to understand the quality checking process.
Recommendation
After thorough analysis of the whole production system of Prominent Metals we would
like to recommend the following:
• Shift to just in time supply for better production rates.
• Incorporate digitalized means of recording inventory.
• They need to increase their storage capacity as soon as possible.
• Plan and sort out their production capacity in accordance to their demand.
• Meet the demand that is incurring or else competitors will grab their market.
 
Conclusion
• The company operates the management systems to provide the best quality of
tin containers.
• Their facility layout levels out workload and makes production procedure more
efficient and helps to ensure quality.
• We find out that their inventory management system is outdated.
• The company is still working relentlessly for further improvement of their
operations.
THANK YOU

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