Assignment o2

8/11/2019 Assignment o2

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also wholly owned subsidiary of the company, was incorporated to

ac!uire tile manufacturin factory at 7oran and has recorded a pro8t

of Rs. 9%% million for the year. Royal Ceramics *istributors (Pvt) Ltd is a

wholly owned subsidiary of Royal Ceramics Lanka PLC has recorded a

loss of Rs. %14,''' durin the year under review. $his subsidiary

company:s operations were transferred to the parent company durin

midyear ended % st -arch 0''9.

Rocell ;athware Limited, is also a wholly owned subsidiary of the

company, was incorporated to manufacture and sell sanitaryware

products to local and export market, has recorded a loss of Rs. %%

million for the year.

;y the time it expanded its business, it created a brand for its priced as

5Rocell6. $oday this brand name has ood personality and it has

captured 8fty 8ve percent (44<) of the #ri Lankan market and exports

to numerous countries across the lobe. $he market of operation of

the company done throu h the stron distribution network comprises

of ' show rooms and three (' ) warehouse that were located instrate ic area in #ri Lanka. Recently the mana ement decided to open

its show rooms in =orth and east province. / >easibility study is bein

conducted to do it in /mpara, $rincomalee, ;aticallo, "avniya and

3a?na. -ost probably mana ement think the company could explain its

business there with 5@thuru Aasantahaya6 and 5=e enahira

=awodaya6. 7ow they predicted is on their expert knowled e in

analy2in the future economy.

>urther, $he -ana ement o?ered to Ceylon theater for the companies

which producin ceramic tiles, to et controllin power of the -ain

competitor, Lanka $iles PLC, Lanka Aall $iles.

;efore we analy2e the mana ement system, it is re!uired to mention

about the 8nancial situation of the company. $his is because, these

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8nancial 8 ures are the measurements of e?ectiveness & eBciency of

the mana ement practices done by the company.

+ven thou h, the company faced to an economic crisis in the later part

of the 8nancial year 0'%0 0'% , Rocell reported Rs.%.D billion net

pro8ts remarkably, while recorded pro8t of Rs. %.0 billion in

0'%% 0'%0.

In any or ani2ation, plannin is a critical mana ement activity

re ardless of the type of or ani2ation bein mana ed. $his is not

common for pro8t or ani2ation but common for every or ani2ation like

non pro8t or ani2ation, defense forces etc.

$his company has established its vision & mission speci8cally. $hat is

Vision

“ To continue to be the leader in the surfacing industry locally

& to enter and impact the global market. ”

$his vision has said its dream of the future of the business deeply

embedded in the mind of founders.

Mission

“ To o er state of the art surfacing solutions to both the home

and commercial builders with products and services that

transcend the highest quality, ensuring customer satisfaction

by matching all expectation, growing the market by way of

product innovation, thereby enhancing share holders wealth,

developing human resources to excelling latitudes such that

Royal eramics exudes a stance of excellence!

3



-ission has clearly said and identi8ed scopes of the business operation

in product and market terms. Its maEor product is providin surfacin

solution. +ven thou h this mission statement talkin about surfacin

solution, in 0'' , the company started its business to provide total

sanitaryware solution to the #ri Lankan customers as a fully own

subsidiary of Royal Ceramics Lanka PLC and under Rocell brand. $hat

company is called Rocell ;athware (Pvt) Ltd. Ahen we analy2e the

vision & mission statement of the mother companyF set up by its

founder, the time has come to chan ed it. $his occurred due to

chan in of the mana ement. #even years a o, the present

mana ement has taken the mandate power havin ac!uired more than

4%< of total shares issued to appoint directors to take direct decision

as their desire. $he new mana ements view is very broader than the

previous. $hey wanted to expand the business within ceramics industry

without limitin it to the tiles.

In other point of view, even thou h this subsidiary is fully own by the

RCL PLC and controlled by the same corporate mana ement, it has aseparate company and have a le al personality. $herefore the Rocell

bath ware Ltd (R;L) has separate vision & mission statement.

/ll products made by these three were distributed by its show rooms.

$hese show rooms were located strate ically to expand the market

share. / show room mana er is appointed to each show room with at

least three assistants. =umber of assistant may defer on number of

transactions done by each show room. +ver customer can buy any kind

of tiles and bathware at any time from these show rooms.

=ow we have a !uestion what sort of tile we produce and sales and the

total !uantity of each cate ory. $herefore the company needs to do a

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market analysis. +ach and every month the top mana ement

summoned all key people in the mana ement. $hen they are

!uestioned about their ideas information about the market, customers:

expectations, what competitors do , barriers and diBculties and so on.

$his meetin is called *esi n Review -eetin . In mana ement these

types of meetin fall into the cate ory of #;@ pans. *oin all these

thin company prepares the production plan. It is not a simple task.

>irst it is needed to decide the desi n of the tiles. $herefore to prepare

the ;ased on the company "ision and -ission statement of the

company, mana ement sets its obEectives and strate ies. ;efore we o

throu h the plannin process it is re!uired to explain about the

or ani2ation structure of the company. $hen very easily you can

understand the plannin process of the company.

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Organization Structure

6

CEO RocellBath ware LTD

Chairman

Vice Chairman

MD

Board of Director

!ead of"actor# RBL

!ead of R$L"actor# Com%le&

!ead of RCL"actor# Com%le&

!ead ofTechnical

!ead of 'ale( )dmin

!eadof *T

!ead of)+dit

) t, "actor# Mana-er.$rod+ction

DirectorM-t ( 'ale

) t, $rod+ctionMana-er

M-r$lannin-

M-r /C (R(D

M-r!RM

'howroom M-r

) t,'tore M-r

"actor#)cco+ntant

'ection*nchar-eMillin-

'ection*nchar-e .$oli hin-

'ection*nchar-e. 'ortin-

'ection*nchar-e

. 0iln

'ection*nchar-e. $re

$rod+ctionE&ec+ti e

$rod+ction'+%er i or /C

'+%er i or !R) t

!R) t

'tore0ee%er

'tore0ee%er

/)E&e

'toreE&ec+ti e

!RE&e

'how room) t,

$lannin-E&e.$rod,

$lannin-E&e

Deli er#

$lannin-E&e

E&%ort

)ccOfficer

)ccE&e



I Eoined Royal Ceramics Lanka Limited >actory located at +heliya oda,

% as a -ana ement $rainee. I was assi ned to Guality Control

*epartment of the factory. ;y % 1, I have been promoted to /sst.

Guality Control -ana er, /s the /sst. Guality Control -ana er, main

task was to desi n development, process Controllin and *ocument

preparation for I#H ''% certi8cation.

$he eneral -ana er assi ned me and another executive oBcers to

prepare a feasibility report on Interbatch Porcelain >actory located at

7orana. Ae have had taken month to prepare the feasibility report.

$he ;oard of *irectors decided to purchase the former Interbatch

Porcelain >actory which was bankrupt, based on the recommendations,

/fter the purchase of RPL (>ormer Interbatch) I assumed duty as

Guality /ssurance and R & * mana er of the Plant.

-ain $ask was to Implement Guality Control #ystem and develop =ew

$iles to compete with Lanka $iles and Hther Importers. *urin the

period, $rainin Pro rammes on $estin and Guality Controllin and

uide lines for Production #ta? were conducted.

In 0'' , $he -ana ement decided to assi n me as the Production

-ana er which was vacant due to promotion of Production -ana er as

the >actory -ana er. /s a new comer to production mana ement, I

had to study function and technical details of all machinery in the

factory which was very diBcult task. 7owever, I could mana e the

Production with the machinery which are havin lot of breakdowns, as

a result, lot of downtime were met. $he top mana ement decided to

up rade the technolo y with modern machinery and knowJhow.

)fter %romotin- to ) t "actor# mana-er $rod+ction * coordinated all de%artment +ch

a +%%lie Mar etin- *T $lanni- and !+man re o+rce al o,



) %er the deci ion ta en # the o%eration committee meetin- on 2778 * ha e een

tran ferred to Rocell Bathware for i& month to im%lement a etter %rod+ction control

# tem in the %lant a the #ield wa er# low, D+rin- that %eriod M# main ta wa to

+ild a team wor within the e&ec+ti e taff which wa er# diffic+lt a the "actor#

Mana-er and $rod+ction Mana-er of Rocell Bathware were er# e&%erienced officer

from *ndia,

!owe er d+rin- thi %eriod * learnt lot of technical matter while wor in- with the all

the taff incl+din- floor le el wor er ,

)fter ret+rnin- ac to R$L factor# Mana-ement decided to a i-n me a the main

coordinator for im%lementation of ER$ # tem for the -ro+% a * wa the onl# %er on

who had e&%erience all three %rod+ction "acilitie , To %re%are central in entor# # tem

within the -ro+% * had to %re%are codin- tr+ct+re for 9eneral 'toc a well a "ini hed-ood for all three %rod+ction facilitie o a to minimi:e the in entor# co t , On 22 nd

)%ril in 2713 Rocell la+nched oracle a ed ER$ # tem and * had to in ol e all codin-

toc alancin- and cond+ctin- trainin- %ro-ramme for all + er in factorie and

howroom ,

)fter the )+-+ t in 2713 m the mana-ement ha rea i-ned me for R$L $rod+ction

$roce a the efficienc# and achie ement were low d+e to technical rea on ,

$lannin-

$re%aration of Monthl# tar-et for the factor# and detailed tar-et for each %rod+ction line,

$re%aration of $rod+ction tar-et for hift.wi e to minimi:e r+nnin- of machiner# d+rin-

%ea ho+r to red+ce the electricit# con +m%tion for the machiner#,

)nal# e the dail# %rod+ction and /+alit# achie ement in each de%t which effect to final

%rod+ction achie ement , )nal# e the rea on if the de%t doe not meet the tar-et and

ta in- correcti e action for the technical matter and allocation of re;+ired e&%erti e for

effected area, Relea in- of ome machiner# to en-ineerin- de%t to carr# o+t maintenance

wor , )nal# in- the re<ect rate of tile at the %rod+ction line and -+ide rele ant officer

to minimi:e wa ta-e in each ta-e of %rod+ction, Orderin- all %rod+ction con +ma le

which im%ort from *tal# '%ain and China and maintain +fficient toc , *n thi ca e the

chec in- and a%%ro in- of the technical drawin- of %reci e *tem +ch a Die and

=



Mo+ld i com%+l or# to a oid an# de iation of the %rod+ct , The toc of +ch material

ho+ld e +fficient for at lea t 3 month , $lannin- %rod+ction %roce o a to maintain

minimal chan-e which chan-in- the %rod+ct to e chan-ed, -ain $ask is to

monitorin the Production and Guality /chievement of the >actory.

/part from that, I have responsibility to allocate Eunior executive to

each and every department so as to uplift their knowled e on the

production process and technical matters.

I facilitate my subordinates for their all production related functions

and if necessary, I propose and et approval for some kind of

instruments and machinery which not exceed ''' usd. ;ut, it is

re!uired to prepare the cost bene8t of the instrument or the machinery

which has to buy. #ometimes, materials have to be taken from any

factory within the roup.

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Or-ani:in-

Hnce a year, the $op -ana ement instruct all relevant mana er to

prepare the bud et for forthcomin year. $he Plannin dept prepare

the market demand of tiles and distribute amon the mana ers. -y

responsibility is to prepare the production bud ets for all consumables

considerin the data iven by the Plannin mana er. Ahile preparin

production bud et, annual shut down of the machinery are also

considered, as some essential maintenance works should be

completed. /ll mana ers in the plant are prepare their bud ets as per

the uide lines iven by the mana ement and plannin dept.

/ll sectional executives are responsible for smooth function of relevant

dept and they are authori2ed to carry out all maintenance and et

assistance of supportive dept, with my knowled e.

Leadin

Conductin daily production meetin with all sectional in char e,

propose most important points to considered. /nd most of 3unior

+xecutives are new comers to the ceramic industry, in line trainin on

trouble shootin s and demonstrations to identify causes, are beinconducted. >or identi8cation of causes and points in production lines,

they should be calm and close inspection for lon time at a point.

Controllin

>urther, I look after all technical matters even if it is a responsibility of

Guality /ssurance dept (Process Controllin ) as I had an experience in

Guality /ssurance dept on Process Controllin , *esi nin of tiles and

$estin of /ll inspection points.

>urther, /s the Production mana er who experienced in Guality

/ssurance dept, I used to investi ate the causes for the various defects

1



which come across while production is oin on even thou h it is a

responsibility of Gauality /ssurance -ana er. >or this, >loor level

workers, 3unior +xecutive and mana ers in relevant department are

participated for identi8cation of causes usin statistical techni!ues

such as pareto dia ram and cause and e?ect dia rams.

11



$he 8nancial year of the company starts form /pril and end with

-arch. +ach & every year, in the month of 3anuary, the top

mana ement informs to relevant heads to submit them, their roup

(divisional plan). Ahat they do is, the heads of each division call

his her all mana ers to submit their individual departmental plans.

$hereafter, the mana ers & the head of the division prepare a plan

to ether with. $hen those plans are discussed with all divisional heads

& top mana ement. /t the 8nal sta e, they 8nali2e the plans for the

company. $his plan is called cooperate plan. $his plan consists of

;usiness Plan, Capital +xpenditure Plan and 7uman Resources Plan.

Ae can overlook the above activities in theoretical aspect. $he

ultimate plan the top mana ement produced is the corporate plan.

/fter cooperate plan was prepared they communicate it to the heads of

each division. +ach head of division communicates plans what they

received form to mana ement to their mana ers. >urther I could see

another plan called strate ic business units plan. $hey had prepared a

plan how to compete with low !uality, low cost imported tiles available

in the market. /s you all know, there are so many such sort of tiles are

available in the market. $he most of the customers do not considerthe !uality and the desi n of the tile. $hey still pay their attention to

cost. Conse!uently it a?ects to drop our sales volume drastically.

$herefore the #;@ unit of the company which comprises of senior

mana ers who came from various disciplines is assi ned to prepare

their strate ic plans to face this competition. $hey had decided to

produce a low cost, ood !uality tiles by usin reen basedF waist

powder in the normal production, but can be used to mix with powder

which can be used to produce ood product to certain ratio. Presently

it has been marketed, and now it is on developin sta e of its life

cycle.

1



/s the Productuon -ana er, my role is to produce production bud et

for the year with the help of Production +xecutives in each dept. >or

this purpose, analysis of Past Production and yield as well as

consumption of all materials are considered.

/fter the 8nal bud et which have been approved by the $op

-ana ement, Production Plan for each production lines are prepared

to ether with Plannin -ana er. >or this purpose, the Plannin

-ana er analyse the past sales of tiles and sales forecast for some

times for forthcomin month. >or this, my responsibility is to assist

Plannin -ana er to prepare the Production Plan, considerin

constraints in the factory.

/s I early mentioned, the functional plans made by the mana ers its

superiors, they prepare the operational plans to achieve their

obEectives. 7ence they have clearly mentioned the policy, procedures,

pro rams, proEects rules & re ulation. >or instance, we take the

operation plans of production. It says what sort of body material they

should use, technical speci8cationF cycle time, temperature number of

labor, #eries of steps of producin a tile, what sort of thin should bedone & not should be done, the expected cost per tile etc.

$he operational plans can be divided into two as sin le use plan &

standin plans. In this economic recession, our company had to stop

its production. #o that the cost of labor was a burden factor. $hen

mana ement plan to ive them volunteer retirement scheme. It was

used only one time. #ometime it may be used one another time in the

future. $his type of plans called sin le use plan. #tandby plans are the

plan what is explained early. >or example plans that consist of the

procedure of makin tile.

1



In the plannin process, you may think that the company has not

followed the plannin process. ;ut plannin process has been used

exactly as it is. Ahen individual departmental plans come form

bottom to top, the top mana ement prioriti2es their obEectives. 7avin

selected the best ways to achieve the obEectives and they make the

action plans. Ahat lower level mana er did is puttin plans into

action. If you o throu h the above detail it clearly shows how

plannin process is oin on.

/s I early explained it clearly shows or ani2ational chart of the roup.

$herefore here I speci8cally explain about the or ani2ation structure &

the or ani2ation chart of Royal Ceramics Lanka PLCF the mother

company. $here are seven elements are re!uired to discuss with

or ani2ational structure. $he maEor Eob of the company is producin

ood !uality tile of a lower cost & distribute to the customer with

pro8t. Hne employee can not produce a tile completely. $herefore the

maEor Eob are re!uired to divide into small & simple Eob in which each

worker can speciali2ed and havin them perform such simpli8ed Eobs

repetitively and continuously.

*ivision of labor and work speciali2ation

%. Producin a $ile

a. Collect raw materials

i. Aei hin Raw material

ii. -ixin raw material

iii. Loadin Raw -aterial

b. Preparin Powder

i. Aei hin -aterials & Loadin ;all -ills

ii. Hperatin ;all -ills and unloadin slip

iii. Hperatin #pray *rier and loadin to silos

iv. Powder -ixin

1



c. ;uildin a Raw tile

i. Hperatin Press -achine

ii. Hperatin "ertical 7ori2ontal drier

d. /pplyin la2e

i. Hperatin la2in /pplication -achine

ii. Hperatin printin -achine

iii. Hperatin Loader ;ed -achine

e. >irin Kiln burnin tiles

i. Inspection of feedin point

ii. Hperate the Panel ;oard of Kiln

iii. Inspection of tile out point

iv. $ile loadin

f. #ortin ood $iles

i. $ile Loadin to the #ortin Line

ii. Guality checkin

iii. #ortin $iles

iv. Hperatin #tacker -achinev. Packa in

vi. @nloadin to palette

. la2e -akin

i. la2e Preparation

If we take the task producin tile, it is divided into at least seven tasks.

/ssume that we take powder preparation. $his Eob can not be done by

one employee. It is also divided into further four ( ) Eobs as wei hin

materials and loadin ball mills, Hperatin ;all mills and unloadin ,

operatin the spray drier and loadin powder to silos and Powder

mixin . $his Eob is a collection of few task and duties. $hen employees

are assi ned to each Eob. Likewise all the above sub tasks that is

1



twenty three are assi ned twenty three employees to cover the duty.

$his is a continuous production system. $herefore each Eob is assi ned

four employees to cover up ei ht hour three shift per day and to cover

the day o?. Ahen those employees do the same Eob over and over

a ain continuously they take work speciali2ation. Ahen we consider

these seven maEor tasks and sub tasks as a whole it is called as the

Production *epartment. ;asically, the base of departmentali2ation is

functional basis. Hn the functional basis the other departments are

Plannin *epartment, Guality /ssurance & Guality Control *epartment,

7uman Resource *epartment and >inance *epartment.

$he third element is chain of command. $he or ani2ational chart

clearly shows the se!uential arran ement of position on the basis of

level of authority. It is unbroken line of the authority that extends from

top of the or ani2ation to the lowest level clarifyin who reports to

whom. Its need to say that, even thou h there is a chain of command,

most probably the lower level oBcer directly report to a top or senior

mana er. #ome time to the mana in director. >or example the 7R

mana er has the power politics to by pass his all immediate superiorsand to report to -*.

In mana ement the number of subordinates who report to a mana er

is called span of mana ement. In each and every department, there is

a mana er. /ccordin to the number of position, the span of control

may defer one department to the other.

It we take production department, the span of mana ement of

production mana er is six. $hose are production executiveJ ;all -illin ,

production executiveJpressin , production executive kiln, production

executive sortin , production executive la2e makin & production

executive polishin plant

1



$he hi hest authority of the company was iven to the -*. 7e is

unable to supervise inspect & makin all day to day business

operations. Ahat he has done, is he dele ated his authority to the

heads of division. *ele ation is the act of assi nin formal authority

and responsibility for completion of speci8c activities to subordinates.

$he head of division assume he is head of RCL factory complex, has

dele ated his authority to his mana ers. =ot total authority but to

most extend. $hen the functional mana ers dele ate it to their /sst.

-ana ers, executives & supervisors so on. $hey dele ate authority to

their senior char e hand, char e hand, production operator to some

extend. /ll the above Eobs are standardi2ed. >urther all the position

of the or ani2ation have been well coordinated to achieve its

obEectivesF to produced ood !uality tile at a lower costF keep it

customers: hand very e?ectively. $his coordination can be seen

vertically as well as hori2ontally too. $he or ani2ation structure of the

or ani2ation falls into 7ybrid system. Ahile each position are reportin

to their immediate supervisor they have report their functional heads.

+specially it can be seen in 7R, >inance department.

$he 7R -ana er and the >actory accountant should report to head of

RCL >actory and should report to head of each functional heads. $he

production department of the company is very similar to a vertical

structure.

Ahen we consider the leadership of the or ani2ation, it seems that it:s

very closer to transactional leadership. It involves an exchan e

relationship between mana ers and followers in the direction of

established oals by clarifyin role and task environments.

1



$he mana ement of the or ani2ation has clearly identi8ed unsatis8ed

needs of the employees. 7ere I would like to analy2e, how company

motivate employees throu h satisfyin employees: needs. $he Rocell

always pay their attention to maintain ood salary for the employees.

$he mana ement wants to uplift their standard of livin . #o those

employees ive their maximum contribution to the mana ement. "ery

recently the company si ned a collective a reement for the three

years with its employee trade union. /t the very be innin of the

discussion between mana ement & mother trade union, the top

mana ement interfere the discussion and ave ever hi hest increment

for the employee when we compare with all other company in #ri

Lankan manufacturin industry. $he intention of the mana ement was

the employee should have a reasonable salary to ful8ll their basic

needs. In addition to that, the company has introduced them an

incentive scheme. $hey can earn money apart from their salary. It is

paid for the yield earned by collectively by them. /s the safety needs,

the company, has iven employees an insurance scheme while

employees are comin to the workin place & on home after 8nished

their work. +mployees have been iven hi h Eob security. Recently wecould see a ood example. In last few months, company closed its sub

units. +ven thou h it was closed, the employees: services were not

terminatedF they were o?ered another Eob in another place. >urther

when we o throu h the employee turnover of the company it ac!uires

2ero (') in last few months. It clearly says that employees do not leave

the company and they satisfy with the bene8ts of the company.

/nnually the shop Moor & sta? employees were iven annual trip. It

was iven in this year too even the company had a 8nancial crisis.

+ach and every year the sales team was iven separate rand party in

appreciation of their service to enhance the sales. /ll the sta?

employees were iven rand dinner party in a 8ve star hotel. $hose

1



are called rewards that are iven to satisfy the social needs of the

employees

/ll employees of the or ani2ation have opportunity to come up to the

top level of their career. =o restriction. It they work up to the

mana ement expectation, they are promoted to the upper level havin

considered the available vacancies. $hen assi n responsibilities &

dele ation of authority. >urther each and every employee has been

provided company uniforms too.

Ahat ever the thin s it should have limitation and close supervision

and control. >or example, assume that we are allowin the employees

to do their Eobs without any supervision. $he people never do their Eob

as expected. $herefore supervision is re!uired. #upervision is also

considered as controllin techni!ues in mana ement. Ahat is

controllin N Controllin is the process of monitorin activities to ensure

they are bein accomplished as planned and of correctin any

si ni8cant deviation. It can not be separated form plannin and both

are interconnected. ;oth of them start with be innin of any process. $he top mana ement holds a meetin called operation committee

meetin at the very be innin of each and every month. /t that

meetin it is re!uired to review what we did in the last month. $he

mana ers have to present their performance in the presence of top

mana ement (-* & *irectors). $hey compare the last month

performance with their set plans. If any deviation, the mana ers have

to ive their corrective action not to repeat it once a ain or to over

come to situation. $he other controllin part is done by the !uality

assurance and !uality control department (G/ & GC *ept). $hey

clearly say how the manufacturin process should be done. Aith the

intention to standardi2e all the thin s done by the company, the G/ &

1



GC department writ down the policies and procedures of the followin

areas.

o Procedure for -ana ement Review

o Procedure for Contract Review

o Procedure for contract review for show Room

o Procedure for *esi n Control

o Procedure for *ocument =umberin

o Procedure for *ocument and *ata Controllin

o Procedure for #ubcontractor +valuation

o Procedure for Identi8cation and $raceability

o Procedure for chan e of *ocument

o Procedure for Control and standard

o Procedure for #ub Contractor Re istration

o Procedure for Preparation of purchase order or contracts

o Procedure for Process Control

o Procedure for Production Control

o Procedure for -aintenance of Plant and -achinery

o Procedure for Incomin material Inspection

o Procedure for Inspection and test #tatus

o Procedure for Corrective and preventive action

o Procedure for the control of =onconformin Product

o Procedure for handlin Customer Complaints

o Procedure for #hippin

o

Procedure for Packa ino Procedure for handlin

o Procedure for delivery in +xport

o Procedure for *elivery for locale sales

o Procedure for stora e

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o Procedure for 7andlin Guality records

o Procedure for Internal !uality +nvironment /udit

o Procedure for provision of $rainin , /wareness and Competence

o Procedure for servicin Customer

o Procedure for statistical $echni!ues

Ahen you o throu h the above procedure you can understand clearly

how company controls all the area of the company. If any deviation is

found, company takes immediate actions to make it correct.

>urther the company uses the 8nancial & non 8nancial controllin

techni!ues. $he 8nancial techni!ues that company uses are 8nancial

audit, 8nancial bud et which is prepared annually, break even analysis,

8nancial statements, and 8nancial ratio analysis. #upervision, !uality

control & inventory control, performance evaluation and employin

security personals are the non 8nancial techni!ues that are used by

the company as its controllin system.

$he 7uman Resources Policy of the company is to attract most suitably

!uali8ed people, retain them and maintain most contented work force

in the or ani2ation. /ll the 7R practices such as Recruitments,

#election and Induction, Performance +valuation, $rainin and

*evelopment, #alary /dministration, *isciplinary /dministration,

rievances 7andlin , +mployee motion are done by the company.

#pecially, it essential to say that Rocell maintains a ood industrialrelationship with its +mployees: $rade @nion. It represents ninety

percent of the shop Moor employees. @nder Rocell roup, there are

three branch trade unions re istered separately but work collectively

as one mother $rade @nion. $hat is Inter Company $rade @nion.

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Ceramic industry is ever chan in day by day new desi n & new

technolo y come to the industry. @sin this new technolo y, the

company produces hi h !uality tiles at a lower cost. -onali2a, =aveen

Ceramics & Lanka tiles are the maEor competitor of Rocell. $he

-onali2a, which is imported from China, is ac!uirin the #ri Lankan

hi her income level of the country. =aveen Ceramics imports di?erent

types of tiles to #ri Lanka from China at a lower cost. Lanka tiles

produces tile as mass production at a lower cost even thou h it doesn:t

have more desi n.

$o face to these challen es the company should facilitate to its all

members to learn the chan es in the lobal industry and need to

transform what they learnt continuously. $en years a o the la2e was

applied to the tiles by spray machine. ;ut in present it is done by velar

machine. It is a new technolo y and apply la2e evenly on the surface

of the tile. /s another example, in the past, the company used the

multiJrole technolo y to print di?erent types of tiles desi n. $ime to

time it has been chan ed, and multiJrole was converted to rotoJcolour.=ow it is bein converted nanoJtechnolo y. It is the newest technolo y

used by hi h state of the art factory to produce tiles. =ow we will see

what Rocell did. $hey send hi h caliber technical & en ineerin people

and employee who had most experience in the 8eld to Italy & China

who produced world best tile, to learn these new technolo ies.

$hereafter the mana ement summon the production operators and

other employees and educate them and top mana ement top

mana ement too. =ow it can be identi8ed as or ani2ational learnin .

$hen #enor technician who participated trainin & education pro ram

and the technical experts who attended to overseas trainin , all

to ether transform this knowled e to each and every employees. Like

wise this is common to ac!uirin new mana ement techni!ues. >or

2



instance it is #ixJsi ma concept in the production. $herefore Rocell can

be seen as a learnin or ani2ation. $he stren th of the human

resources of the Rocell is the weapon to complete with its competitors.

In addition to that, recently, Rocell open a concept centre in =awala to

its sanitary ware product. It educates people how to use sanitary ware,

what are the import factors. In the other hand the company educated

its material supplier, how to identify ood !uality material, how it

should be excavated properly etc.

If we analy2e the knowled e, it can be identi8ed clearly as explicit &

implicit knowled e.

$he explicit knowled e have been articulated & documented. $hese

are production manual, technical speci8cation, 7R manuals,

accountin polices & procedures etc. In the factory context the implicit

knowled e is the critical factor. I would like to point out a marvelous

thin here. Ahen we developed a new tile desi n, a new technician

came from Italy. $hat technician was sent by one chemical supplies to

educate us how their chemicals are used. $hen the company alsolaunched its new production desi n in the 8rst time. It the second run

the Rocell technicians could use water instead of that chemical by

chan in the body content. Conse!uently company could reduce the

cost of the tile drastically. $hat is how company used tacit knowled e.

#ome machine operators are also same. #ome time the press machine

made by #/C-I can not be repaired by the technician sent by the

producer. ;ut the one technician of our company was able to make it

correct. Likewise several examples can be pointed out. $his knowled e

become as the power. Power is not somethin that is ac!uired, sei2ed

or shared, somethin one holds on to or allows to slip away. $hen

power creates knowled e.

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>inally I would like to explain somethin more about how mana ement

practices systemic thinkin . >ive years a o the mana ement was

chan ed to new era as I early mention because the top mana ement

do not believe anythin without scienti8c truth. If the middle

mana ement su est to top mana ement about somethin they do

not accept it. $hey need whole information with the reality and the

truth. $herefore I feel that it is enli htenment of western thinkin .

It is explained early the company faced to a 8nancial crisis few months

a o. /s a result of that the middle mana ement ave proposal to

maximi2e contribution of their department. $hey presented their

proposal in the presence of all other senior mana ers. $hose pals had

clearly analy2ed the situation or the problem in their point of view. ;ut

the top mana ement did not accept those proposals to implement at

that sta e. $hey took this problem as a whole and found solution.

Ahat they did was, they decided to close production line for two

months until the stocked built up was moved. $he company had faced

to cash Mow problem and millions of rupees had been utili2ed on

unsold inventory. Ahen I analy2e the above matter it seems that whatmiddle mana ement did was reductionism. $hey analy2ed their small

part ave proposals but $op -ana ement took it as a whole. Its looks

like 7olism.

/t last but not least, when the company operates its business it does

not says the technical word to the work done. Ahen analy2ed the

situation it clearly shows the theoretical back round.

2



Reference

)nn+al Re%ort Ro#al ceramic Lan a $LC 2778

Certo ',C, ( Certo ',T, >2776?, @Modern Mana-ementA 17 th edition $rentice.!all

*ndia,

/+alit# Man+al Ro#al Ceramic Lan a $LC 2778

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