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1.1. Origin of the Report
Master of Business Administration (MBA) is a comprehensive professional course
designed to make professionals with better business and administrative knowledge.
This report is the accomplishment of the business program as required for the
completion of the MBA course at IUBAT- International University of Business Agriculture
and Technology and the Department of Production and Operation Management. The
report was duly approved by the faculty advisor Mozaffar A Chowdhury, College of
Business Administration, IUBAT- International University of Business Agriculture and
Technology. The topic of the Report is “Production and Operation System of Dhaka
Ice Cream Industry Ltd (DIIL)”.
1.2 Background
This is a report which I have prepared to fulfill the requirement of the course POP-501.
This following report has been assigned to me by my advisor Mozaffar A Chowdhury. I
have collect information form Premier Cement Mills Ltd for a time span of one month as
a report; where I had the opportunity to see and learn new things about how a cement
company in Bangladesh operates. This report reflects about my in-depth understanding
about the various aspects of this company and the cement industry on the whole.
1.3 Objective
The main objectives of this report are:
To have a practical experience of Job life.
To find out the relevance and application of the theoretical knowledge in
practical life.
To know about the real life scenarios and problems that occurs in a workplace
which however cannot be understood properly by reading books and studying
in classrooms.
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To gain an in-depth knowledge about how a company (in this case a ice
cream company) functions by utilizing its resources properly.
To gain knowledge about the ice cream industry of Bangladesh about
production and operation management.
1.4 Methodology
This report has been completed by taking information from different relevant sources.
Some accounts have been taken by observing and working with the company itself.
However, this report also consists of a significant amount of data obtained from both
primary and secondary sources.
Secondary data:
For the secondary data, I have used the intranet of Dhaka Ice Cream Industry
Ltd (DIIL) which mainly consist of the data and the excel sheets of the
company.
I have also taken information from various reports which were provided to me
by Dhaka Ice Cream Industry Ltd (DIIL).
In addition, I have taken some information from the internet as well.
Primary data:
Practical work experience at the different departments of Dhaka Ice Cream
Industry Ltd (DIIL).
Discussions and meetings with the employees of Dhaka Ice Cream Industry
Ltd (DIIL) regarding their feelings, opinions and feedback regarding Dhaka Ice
Cream Industry Ltd (DIIL). .
Field visits to the factory of Dhaka Ice Cream Industry Ltd (DIIL), meeting with
the engineers and masons and some brief visit to the cement shops.
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1.5 Scope
This report is focused on cement industry by the Dhaka Ice Cream Industry Ltd (DIIL) in
Bangladesh. The manufacturing firms now have operated throughout the country.
Research was restricted within the clients of Tejgaon, Dhaka of the Dhaka Ice Cream
Industry Ltd (DIIL). However for comparison with other ice cream industry, igloo offers
were also studied. The findings and recommendations are based on the activities ice
cream industry for consumer’s durable products only.
1.6 Limitation
While collecting information within the company, we faced some limitations in terms of
having access to information belonging to the company. As we spend time there as a
report, we did not have access to many documents which prevented me from including
up a lot of information n details about certain topics of the report. Although we collect
information in almost all the departments of the corporate office of Dhaka Ice Cream
Industry Ltd which provided me with a broader perspective of how the company works,
nevertheless I did not get an in-depth understanding and information about every sector
of all the departments of the company uniformly. Although we had this limitation,
however we have tried our level best to fulfill the objectives of this report properly.
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2.0 THE INVENTION OF ICE CREAM
The story of ice cream begins a long, long time ago in a most beautiful place. The story
of ice cream begins over 3,000 years ago in China. Lots of cool things were invented in
China. Umbrellas, glasses and fireworks were all invented in China but the tastiest and
coldest Chinese invention is snow ice cream. The Emperors of China were the first
people; their cooks mixed snow and ice from the mountains with fruit, wine and honey to
make a tasty treat for their rulers to enjoy when they wanted to relax.
In 62 A.D. the Roman Emperor Nero wanted to eat snow ice cream so badly he sent
slaves up to the mountains to bring back snow and ice so his cooks could make it for
him. Nero's cooks mixed the ice and snow the slaves brought back with nectar, fruit and
honey and then Nero ate it.
In 1295, Marco Polo, a great adventurer, returned from China to Italy with a new recipe
for making snow ice cream. His recipe called for mixing yak milk into snow in order to
make it creamy. The idea of mixing a mammal's milk into snow ice cream caught on and
soon the rich people of Italy were enjoying frozen milk.
In 1533, Catherine de Medici of Florence, Italy became the Queen of France when she
married the French king, Henry II. One of the things she took with her when she moved
from her home in Italy to her castle in France was her recipe for making frozen milk.
Soon many of the cooks in France were making the delicious treat. One French chef
opened a shop to sell the tasty treat. He was the first cook to add flavors like chocolate
and strawberry to the frozen milk.
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When Charles I of England visited France in the 1600s, he was served frozen milk. He
loved it so much, he asked the French chef who served it to him to sell him the recipe.
Charles I took the recipe back to England with him and the rich people of England
began to eat the delicious cold dessert.
In 1700, Governor Bladen of Maryland, who was from England, served ice cream to his
guests. Seventy-six years later, the first ice cream parlor in America opened in New
York City.
Dolly Madison, the president's wife loved ice cream so much, she served it to her White
House guests in 1812. In 1843, an American woman named Nancy Johnston invented
the hand-cranked ice cream freezer, which made making ice cream easier. In 1851
Jacob Fussel opened the first ice cream factory in the United States of America in
Baltimore, Maryland. He sold his ice cream from a wagon. In 1899, August Gaulin, who
lived in France, invented the homogenizer. This invention helped give ice cream a really
smooth texture. In 1902, August Gaulin invented a new kind of ice cream freezer that
helped make ice cream freeze faster.
In 1903, Italo Marchiony, a man who sold ice cream from a pushcart he pushed through
the streets of New York City, invented the ice cream cone and patented his idea. He
invented the waffle cup because he was tired of people walking off with or breaking the
glasses he used to serve ice cream from his pushcart.
A year later in 1904, E.A. Hamwi introduced the waffle cone at the St. Louis World Fair.
People say he began making the waffle cones when an ice cream vendor at the fair ran
out of bowls.
The closing of bars that sold wine and beer in 1919 led to the opening of many ice
cream parlors in the United States. The more Americans ate ice cream the more they
wanted to eat ice cream. This demand for ice cream led to the invention of the first
chocolate covered ice cream bar. The first chocolate ice cream bar was called the I-
Scream Bar but later its name was changed to the Eskimo Pie.1
1 Reference: http://webinstituteforteachers.org/~cbmallare/History1.htm
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2.1 INTRODUCING ICE CREAM IN BANGLADESH
In the 90’s Polar Ice Cream was the only producer in Bangladesh. During that time,
Polar was very popular and was available in all market areas. Bangladesh is a small
country where summer season is the longest and so people have high demand on
having ice cream due to hot weather. Polar has become a matured brand in 90’s mid
but after few years other competitors like Igloo, Savoy, and Kwality entered the market.
Polar strong rival is Igloo. Today, these two are the largest ice cream producers in
Bangladesh. The market of ice cream, especially the branded ones, started to expand
at a faster pace since 2000. Other than Polar, Igloo, foreign brands came in Bangladesh
like Moven Pick, Baskin Robbins, Club gelato and Anderson Ice Cream. These are ice
cream parlors and are available only in Dhaka. Their target customers are upper class
while Polar serves to all classes of people.
Most target customers are youth. Polar have always been targeting their product to all
ages of customers. During the summer season they attract the customers with variety of
ice creams in different shape and taste.
From 2000, due to the management crisis Polar has been suspended for few years.
Then in 2008 Polar re-launch their company with new management and brand image.
Today, Polar has gain the popularity and is in rising position. They are almost close to
the level of their rivals. Polar have bright future and could earn sustainable competitive
advantage within few years.
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2.2 ESTABLISHING “POLAR”
Dhaka Ice Cream Industries Limited (DIIL) introduced the first hygienically packed ice
cream in Bangladesh in 1987. The brand name “Polar” was thus born.
In the early days, they started the ice cream business with a wide range of products
and a variety of flavors in Dhaka city. In 1988, the company started its distribution in
the city of Chittagong, then Bogra and then covered the city after city. Presently, Polar
ice cream is available throughout Bangladesh. The company today is one of the
leading producers and distributors of ice cream in the country.
The company has its head office, as well as a modern, large scale industrial plant in
Dhaka at Tejgaon commercial area. Polar ice cream is made with Danish expertise,
using Danish equipment and technology. The production activities and quality
control measures are supervised and managed by a Danish manager.
Polar offers a wide range of delicious flavors and tastes made by ingredients imported
from Europe. Polar ice cream are enjoyed and loved by people of all ages.
Objectives
“To maintain the possible consumer satisfaction and to deliver the most hygienically
produced Polar Ice Cream at affordable price”.
Mission
“To uphold the superior image of the company among its valued customers.”
Vision
“To increase the range of the products in the near future to the growing demands of the
customers.
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Commitment
“Always comply with the statutory and regulatory requirements through continual
improvement of Food Safety Management System (FSMS) and teamwork.”
Company address
The Brand name
“POLAR”
Brand Logo
The tagline
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Dhaka Ice Cream industries Limited
80 Shaheed Tajuddin Ahmed Sharani
(old) 288-290, Tejgaon Industrial Area
Dhaka-1208, Bangladesh
Tel: (880-2) 8812437, 8812460, 9898027-8
“Delight in every bite”
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2.2.1 DIIL PRODUCTS
Items Product's name
Choco Bar
Baby Choc
2 in 1
Malai
Crunchy
Penguin
Rocks
LollyLemon
orange
Cup-normal
Vanilla
strawberry
Mango
Cup-premium
Pista kulfi
Chocolate
Royal Sundae
Cone Carnival
Cup 1 litre Container Vanilla
strawberry
Mango
Ripple
Choco Crumb
Caramel Touch
Strawberry
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Mango mellow
Cake Ice Cream cake
2.3 POLAR ICE CREAM
Polar 5 Litre Cup
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2.4 THE NETWORK
Dhaka Ice Cream at present has 4 cold stores in Dhaka, Chittagong, Bogra and
Jessore in Bangladesh.In Dhaka City, DIIL distribute ice creams directly to retail stores
in freezer bans. Beside that, they have several distributors at different points in the city.
Distributors cover their individual areas where they are not able to supply directly in their
freezer vans.For storing and selling their ice creams in retail stores, they arrange a deep
freezer with Polar logo and capacity light box (upon request from the store owner).
From Dhaka cold store, they distribute their products in Mymensingh, Tanagail,
Jamalpur, Sherpur, Kishoreganj, Netrokona, Comilla, Narsinghdi, Barisal,
Madaripur, Agealjhara, Faridpur, Magura, Chudanga, Jessore, Satkhira, Khulna,
Pirojpur and Sylhet through their distributors. In case of long distance delivery points,
they use an auto cooling freezer van so that the ice creams retain their quality.
They also distribute their ice creams directly to retail store by freezer van in Chittagong.
Beside that, they have several distributors at different points of the city. From our
Chittagong cold store, they distribute ice creams in Feni, Chowmohini, Cox’s Bazar,
Rangamati and Bandarban through our distributors.
They have similar distribution network in Bogra too, from where they sell ice creams in
Rangpur, Saidpur, Dinajpur, Natore, Rajshahi and Pabna through their distributors.
DIIL also have cold store in Jessore and has a similar distribution network. They
distribute ice creams in the entire south Bengal area including Khulna and Barisal
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division, through their distributors.Other than distribution, they also undertake home
delivery of ice creams for special occasions.
2.4.0 DIIL DISTRIBUTOR’S MAP
Dhaka Ice Cream Industries Limited
Dhaka Cold Store
Chittagong Cold Store
Jessore Cold Store
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Polar Transports- Freezer Van and Trolley
2.5 FOOD SAFETY AND QUALITY POLICY IN DIIL
***NOTE: All the policy of DIIL has been quoted from various websites of Bangladesh
Food safety has become an important topic as consumers in Bangladesh have become
victim of serious adulteration in food. It has been reported in the media how certain
"rogue" restaurants are using dead chicken meat and sweets mixed with substances
that pose health hazard. We cannot ignore as this is a matter of life and death. We have
to maintain certain standards so that consumers are satisfied with what they consumed
in terms of their quality, standard and hygiene. Even government has to provide all
necessary support to maintain the safety of foods.
The main concern of Dhaka Ice Cream Industries Limited is the image of the company.
Their endeavor is to maintain the consumer satisfaction in the utmost possible way and
committed to deliver the most hygienically product at affordable price. That is why DIIL
always observe the statutory and regulatory requirements through food safety and
quality policy. There are several laws in Bangladesh that DIIL adhere to for maintaining
health and safety standards
2.5.1 The Bangladesh Standards and Testing Institution2
The Bangladesh Standards and Testing Institution Ordinance, 1985: This ordinance
relates to establishment of an institution for standardizations, testing, metrology, and
quality control, grading and marking of goods. Within the framework of this ordinance,
the government has established the Bangladesh Standards and Testing Institution
(BSTI). One import task of this organization is to certify the quality of commodities,
materials, whether for local consumption or for export and import. The Ordinance has
been amended as The Bangladesh Standards and Testing Institution (Amendment) Act,
2003.
2 Reference: http://www.bsti.gov.bd/about.html
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2.5.2 Features of BSTI
(a) Surprise inspections of the licensee's factory are being carried out periodically by
qualified inspecting officers of the institution and random samples are being taken and
tested at the BSTI Laboratory.
(b) Products bearing the standard mark are collected by the surveillance team of the
institution directly from the open market and tested in the BSTI Laboratory.
Representatives from the Consumers Association of Bangladesh (CAB) and the
respective chamber of commerce and industries help the surveillance team in
performing its function.
(c) Entrusted the responsibility of formulation of national Standards of industrial, food
and chemical products keeping in view the regional and international standards.
(d) Responsible for the quality control of the products which are ensured as per
specific national standards made by the technical committees formed by BSTI.
(e) Implement the metric system and to oversee the accuracy of weights and measures
in the country.
2.5.3 Food Safety Management System
Food safety is a global concern. Public health issues can significantly impact on trade.
Legislation, in most countries, requires proprietors of food companies to implement
HACCP principles into food production systems. A management system based on
HACCP principles allows organizations to identify, document, maintain and review food
hazards that occur during the food production process.2
2 Reference:http://www.nimbusbangladesh.com/services.html
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2.5.4 Hazard Analysis and Critical Control Point (HACCP)
HACCP is a systematic preventive approach to food safety and pharmaceutical safety
that addresses physical, chemical, and biological hazards as a means of prevention
rather than finished product inspection. HACCP is used in the food industry to identify
potential food safety hazards, so that key actions, known as Critical Control Points
(CCPs) can be taken to reduce or eliminate the risk of the hazards being realized. The
system is used at all stages of food production and preparation processes including
packaging, distribution, etc.3
2.5.5 Basic principles of HACCP
There are seven discrete activities that are necessary to establish, implement and
maintain a HACCP plan, and these are referred to as the 'seven principles' in the Codex
Guideline (1997).4
1. Conduct a hazard analysis.
Identify hazards and assess the risks associated with them at each step in the
commodity system. Describe possible control measures
.
2. Determine the Critical Control Points (CCPs)
A critical control point is a step at which control can be applied and is essential to
prevent or eliminate a food safety hazard, or reduce it to an acceptable level.
3. Establish critical limits.
Each control measure associated with a CCP must have an associated critical limit
which separates the acceptable from the unacceptable control parameter.
3 Reference: http://en.wikipedia.org/wiki/Hazard_Analysis_and_Critical_Control_Points4 Reference: http://www.fao.org/docrep/005/Y1390E/y1390e09.htm#TopOfPage
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4. Establish a monitoring system
Monitoring is the scheduled measurement or observation at a CCP to assess whether
the step is under control.
5. Corrective action
Establish a procedure for corrective action, when monitoring at a CCP indicates a
deviation from an established critical limit.
6. Verification
Establish procedures for verification to confirm the effectiveness of the HACCP plan.
Such procedures include auditing of the HACCP plan to review deviations and product
dispositions, and random sampling and checking to validate the whole plan.
7. Documentation
Establish documentation concerning all procedures and records appropriate to these
principles and their application.
2.5.6 Quality Management System
Quality Management System defines quality as ‘the degree to which a set of inherent
characteristics fulfils requirements.’ Grade denotes a category or grade attributed to a
product, and grades and categories of products having the same functional use can be
widely different. The term quality assurance is used to denote actions that lead to
building confidence in all concerned stakeholders that requirements would be fulfilled.
The term quality control simply focuses on fulfilling quality requirements. Quality
management, on the other hand, encompasses all activities, maintaining the focus on
distinction and control aspects in an organization as regards quality is concerned.5
5 Reference: http://www.fao.org/docrep/005/Y1390E/y1390e09.htm#TopOfPage
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2.6. AUDIT PLAN
Audit plan is the arrangement to confirm that the management system has been
established and implemented in according to the requirements of the audit standard. An
audit plan is a set of policies and procedures that dictate how auditing is to be
implemented. Audit plan measures to determine what, and how much, evidence must
be collected and evaluated — as well as who will collect and evaluate it, and when this
should be done.
Organizations typically prepare audit programs based on the operational planning
activities of the evidence collected and evaluated by an auditor. The audit plan is
prepared and, if need be, revised in accordance with the evidence. It is documented in
the audit working papers, which are the official record that contains the planning and
execution of the audit agreement. While the formality of an audit plan largely depends
on the size of the organization, all plans require certain elements in order to be
effective.6
2.6.1 Internal Audit
An internal audit analyzes the activities, processes and procedures of a business. The
goal of the audit often is to improve the company’s productivity and increase its
revenues.
Since management is normally held responsible for internal control, managers are often
the target of this type of audit. To fairly and equitably analyze the company’s employees
and management procedures, an internal audit generally requires the people
conducting it to be independent evaluators. Often, third-party professionals are hired to
conduct the audit to ensure neutrality.
6 Reference: http://nimbusbangladesh.com/9001.html
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2.7 PRE-REQUISITE PROGRAM IN DIIL8
Figure: Pre-requisite program
1. Primary Production8 Reference: Dhaka Ice Cream Industries Limited/HOHR/Admin/HR Policy
19
Primary food production should be managed to ensure that food is safe and wholesome
for the consumer. Production should be fit for purpose and should not have previously
been contaminated with heavy metals, industrial chemicals or environmental waste.
Such hazards will be transferred into the food chain rendering the commodity unfit for
human consumption.
2. Establishment Design and Facilities
The structure and location of a processing plant needs to be considered in relation to
the nature of operations and risks associated with them.
Food premises should be designed to minimize possibilities of contamination of
commodity or product.
Design and layout should permit maintenance, cleaning and disinfection of the
site to minimize airborne contamination.
All surfaces that come into contact with food should be non toxic, as well as
being easy to maintain and clean in order to prevent any additional
contamination.
Suitable facilities should exist for temperature and humidity control, when
required.
Effective measures should exist to prevent access by pests
3. Control of Operation
Effective control measures should be in place to reduce the risk of contamination of the
commodity or food supply such that it is safe and fit for purpose:
Adequate time, temperature or humidity controls
Ice cream grade packaging
Potable water supplies
Maintenance of equipment
4. Maintenance and Sanitation
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Procedures and work instructions should exist to demonstrate an adequate level of
maintenance of an establishment as well as efficient practices for cleaning, waste
management, and pest control. Overall, these operations will support the ongoing
control of potential food hazards that may contaminate food.
5. Personnel Hygiene
Measures need to be in place to ensure that food handlers do not contaminate food.
This objective can be attained by maintaining an appropriate level of personal
cleanliness and following guidelines for personal hygiene.
6. Transportation
The method of transportation should be such that measures are taken to prevent any
contamination or deterioration of the commodity. Commodities or product that need to
be transported in certain environments should be appropriately controlled, e.g. chilled,
frozen, or stored under specific humidity levels.
Containers and conveyors used for transporting ice cream need to be maintained in
good condition and be easy to clean. Containers used for bulk transfer should be
designated and marked specifically for food use only.
7. Training
All food handlers should be trained in personal hygiene, as well as in the specific
operation with which they are working, to a level commensurate with their duties. Ice
cream handlers should also be supervised by trained supervisors. An ongoing training
programme for ice cream handlers is paramount to the success of a Food Safety
Management System
8. Product Information and Consumer Awareness
The end product should be accompanied by adequate information to ensure that
personnel at the next stage in the food chain will handle, store, process, prepare and
display the product safely. Since the consumer may be responsible for performing the
ultimate control measure, the ingredients of ice cream, they should have all the relevant
information required to carry out this step effectively.
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3.0 Production and Operations Management of Dhaka Ice Crème Industry Ltd (DIIL)
Production is the creation of goods and services. Operations Management (OM) is a
set of activities that creates value in the form of goods and services by transforming
inputs into outputs. Activities creating goods and services take place in all
organizations. Dhaka Ice Cream Industry Ltd manufacturing firms, the production
activities that create goods are usually quite obvious. In them we can see the creation of
a tangible product such as cement production depends on Ten Critical Decisions /
Factors of Operation Management.
3.1 Design of goods and services
Product design is the process of defining all the features and characteristics of just
about anything you can think of, from Starbuck’s cafe latte or Jimmy Dean’s sausage to
GM’s Saturn or HP’s DeskJet printer. Product design also includes the design of
services, such as those provided by Salazar’s Beauty Salon, La Petite Academy Day
Care Center, or FedEx. Dhaka Ice Cream Industry Ltd consumers respond to a
product’s appearance, color, texture, performance. All of its features, summed up, are
the product’s design. Someone came up with the idea of what this product will look like,
taste like, or feel like so that it will appeal to you. This is the purpose of product design.
Product design defines a product’s characteristics, such as its appearance, the
materials it is made of, its dimensions and tolerances, and its performance standards.
THE PRODUCT DESIGN PROCESS
Dhaka Ice Cream Industry Ltd certain steps are common in the development of most
product designs. They are idea generation, product screening, preliminary design and
testing, and final design. Notice that the arrows show a circular process. Product
designs are never finished, but are always updated with new ideas. Let’s look at these
steps in more detail.
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Idea Development
Dhaka Ice Cream Industry Ltd product designs begin with an idea. The idea might
come from a product manager who spends time with customers and has a sense of
what customers want, from an engineer with a flair for inventions, or from anyone else in
the company. To remain competitive, companies must be innovative and bring out new
products regularly. In some industries, the cycle of new product development is
predictable. We see this in the auto industry, where new car models come out every
year, or the retail industry, where new fashion is designed for every season.
Product Screening
After a product idea has been developed Dhaka Ice Cream Industry Ltd it is evaluated
to determine its likelihood of success. This is called product screening. The company’s
product screening team evaluates the product design idea according to the needs of the
major business functions. In their evaluation, executives from each function area may
explore issues such as the following:
• Operations What are the production needs of the proposed new product and how do
they match our existing resources? Will we need new facilities and equipment? Do we
have the labor skills to make the product? Can the material for production be readily
obtained?
• Marketing What is the potential size of the market for the proposed new product? How
much effort will be needed to develop a market for the product and what is the long-term
product potential?
• Finance The production of a new product is a financial investment like any other.
What is the proposed new product’s financial potential, cost, and return on investment?
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Preliminary Design and Testing
Premier Cement Mills Ltd product idea has passed the screening stage; it is time to
begin preliminary design and testing. At this stage, design engineers translate general
performance specifications into technical specifications. Prototypes are built and tested.
Changes are made based on test results, and the process of revising, rebuilding a
prototype, and testing continues.
Final Design
Dhaka Ice Cream Industry Ltd following extensive design testing the product moves to
the final design stage. This is where final product specifications are drawn up. The final
specifications are then translated into specific processing instructions to manufacture
the product, which include selecting equipment, outlining jobs that need to be
performed, identifying specific materials needed and suppliers that will be used, and all
the other aspects of organizing the process of product production.
FACTORS IMPACTING PRODUCT DESIGN
Here are some additional factors that need to be considered during the product design
stage.
Design for Manufacture
Dhaka Ice Cream Industry Ltd product design we generally first think of how to please
the customer. However, we also need to consider how easy or difficult it is to
manufacture the product. Otherwise, we might have a great idea that is difficult or too
costly to manufacture. Design for manufacture (DFM) is a series of guidelines that we
should follow to produce a product easily and profitably. DFM guidelines focus on two
issues:
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1. Design simplification means reducing the number of parts and features of the product
whenever possible. A simpler product is easier to make, costs less, and gives us higher
quality.
2. Design standardization refers to the use of common and interchangeable parts. By
using interchangeable parts we can make a greater variety of products with less
inventory and significantly lower cost and provide greater flexibility.
Product Life Cycle
Dhaka Ice Cream Industry Ltd another factor in product design is the stage of the life
cycle of the product. Most products go through a series of stages of changing product
demand called the product life cycle. There are typically four stages of the product life
cycle: introduction, growth, maturity, and decline.
Concurrent Engineering
Concurrent engineering is an approach for Dhaka Ice Cream Industry Ltd that brings
many people together in the early phase of product design in order to simultaneously
design the product and the process. This type of approach has been found to achieve a
smooth transition from the design stage to actual production in a shorter amount of
development time with improved quality results.
Remanufacturing
Remanufacturing is a concept for Dhaka Ice Cream Industry Ltd that has been gaining
increasing importance, as our society becomes more environmentally conscious and
focuses on efforts such as recycling and eliminating waste. Remanufacturing uses
components of old products in the production of new ones. In addition to the
environmental benefits, there are significant cost benefits because remanufactured
25
products can be half the price of their new counterparts. Remanufacturing has been
quite popular in the production of computers, televisions, and automobiles.
TECHNOLOGY DECISIONS
Dhaka Ice Cream Industry Ltd advancements in technology have had the greatest
impact on process design decisions. Technological advances have enabled companies
to produce products faster, with better quality, at a lower cost. Many processes that
were not imaginable only a few years ago have been made possible through the use of
technology. In this section we look at some of the greatest impacts technology has had
on process design.
Information Technology
Dhaka Ice Cream Industry Ltd information technology (IT) is technology that enables
storage, processing, and communication of information within and between firms. It is
also used to organize information to help managers with decision making. One type of
information technology we are all familiar with is the Internet, which has had the
greatest impact on the way companies conduct business. The Internet has linked
trading partners— customers, buyers, and suppliers—and has created electronic
commerce and the virtual marketplace. Enterprise software is another powerful
information technology, such as enterprise resource planning (ERP). These are large
software programs used for planning and coordinating all resources throughout the
entire enterprise. They allow data sharing and communication within and outside of the
firm, enabling collaborative decision making.
Automation
An important decision in Dhaka Ice Cream Industry Ltd designing processes is
deciding whether the firm should automate, to what degree, and the type of automation
26
that should be used. Automation uses machinery that is able to perform work without
human operators and can be a single machine or an entire factory. Although there are
tremendous advantages to automation, there are also disadvantages. Companies need
to consider these carefully before making the final decision.
E-Manufacturing
Today’s Web-based environment has created numerous opportunities for business
collaboration. Dhaka Ice Cream Industry Ltd includes collaboration in product and
process design, where customers, buyers, and designers can share information and
jointly make decisions in real time. Let’s look at some of the computer systems that can
aid e-manufacturing.
Computer-Aided Design (CAD) Computer-aided design (CAD) is a system for Dhaka
Ice Cream Industry Ltd that uses computer graphics to design new products. Gone are
the days of drafting designs by hand. Today’s powerful desktop computers combined
with graphics software allow the designer to create drawings on the computer screen
and then manipulate them geometrically to be viewed from any angle. With CAD the
designer can rotate the object, split it to view the inside, and magnify certain sections for
closer view.
Computer-Integrated Manufacturing Computer-integrated manufacturing (CIM) is a
term for Dhaka Ice Cream Industry Ltd which used to describe the integration of
product design, process planning, and manufacturing using an integrated computer
system. Computer-integrated manufacturing systems vary greatly in their complexity.
Simple systems might integrate computer aided design (CAD) with some numerically
controlled machines (NC machines). A complex system, on the other hand, might
integrate purchasing, scheduling, inventory control, and distribution, in addition to the
other areas of product design.
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3.2 Managing quality
Quality
To cite Lew Ireland’s choice of definitions, “Quality is the totality of features and
characteristics of a product or service that bear on its ability to satisfy stated or implied
needs.” Today, there is no single universal definition of quality. Some people view
quality as “performance to standards.”Others view it as “meeting the customer’s needs”
or “satisfying the customer.” Let’s look at some of the more common definitions of
quality for Dhaka Ice Cream Industry Ltd:
• Conformance to specifications Dhaka Ice Cream Industry Ltd measures how well
the product or service meets the targets and tolerances determined by its designers.
For example, the dimensions of a machine part may be specified by its design
engineers as 3 _ .05 inches. This would mean that the target dimension is 3 inches but
the dimensions can vary between 2.95 and 3.05 inches.
• Fitness for use Premier Cement Mills Ltd focuses on how well the product performs
its intended function or use. However, if Premier Cement Mills Ltd the definition
becomes more specific and assumes that the intended use is for transportation on
mountain roads and carrying fishing gear, the Jeep Cherokee has a greater fitness for
use.
• Value for price paid is a definition of quality that consumers often use for product or
service usefulness. This is the only definition that combines economics with consumer
criteria; it assumes Dhaka Ice Cream Industry Ltd that the definition of quality is price
sensitive. For example, suppose that you wish to sign up for a personal finance seminar
and discover that the same class is being taught at two different colleges at significantly
different tuition rates. If you take the less expensive seminar, you will feel that you have
received greater value for the price.
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• Support services Dhaka Ice Cream Industry Ltd provided are often how the quality
of a product or service is judged. Quality does not apply only to the product or service
itself; it also applies to the people, processes, and organizational environment
associated with it.
Indicators of Quality
Dhaka Ice Cream Industry Ltd also uses Indicators of Quality. These are very useful,
especially very early in projects, when Defect Counts may not be available. What are
Quality Indicators? These are evidence that certain aspects of Project Quality are in
place. These can be global, across the project, or incremental, for individual
assignments. And, a Project Manager can monitor the Indicators for improvement when
responsibility, process or talent adjustments are made.
Dhaka Ice Cream Industry Ltd is several Indicators we’ve used in a range of project
sizes, from very small to multi-billion dollar ones. Note that many of them relate to the
subjective side of Project Quality, or the Perception of Quality.
• Engagement Measures: Dhaka Ice Cream Industry Ltd internal Customer
involvement in key project activities; expected vs. actual.
• Planned vs. Actual Cumulative Review Count.
• Assessment Measures: Dhaka Ice Cream Industry Ltd customer satisfaction
surveys; stakeholder expectations evaluation.
COST OF QUALITY
The reason quality has gained such prominence is that organizations have gained an
understanding of the high cost of poor quality. Quality affects all aspects of the
organization and has dramatic cost implications. The most obvious consequence occurs
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when poor quality creates dissatisfied customers and eventually leads to loss of
business. However, quality has many other costs, which can be divided into two
categories. The first category consists of costs necessary for achieving high quality,
which are called quality control costs. These are of two types: prevention costs and
appraisal costs. The second category consists of the cost consequences of poor quality,
which are called quality failure costs. These include external failure costs and internal
failure costs.
Prevention costs: Dhaka Ice Cream Industry Ltd is all costs incurred in the process
of preventing poor quality from occurring. They include quality planning costs, such as
the costs of developing and implementing a quality plan. Also included are the costs of
product and process design, from collecting customer information to designing
processes that achieve conformance to specifications. Employee training in quality
measurement is included as part of this cost, as well as the costs of maintaining records
of information and data related to quality.
Appraisal costs: Dhaka Ice Cream Industry Ltd is incurred in the process of
uncovering defects. They include the cost of quality inspections, product testing, and
performing audits to make sure that quality standards are being met. Also included in
this category are the costs of worker time spent measuring quality and the cost of
equipment used for quality appraisal.
TOTAL QUALITY MANAGEMENT (TQM)
Introduction
TQM is the way of managing for the future, and is far wider in its application than just
assuring product or service quality – it is a way of managing people and business
processes to ensure complete customer satisfaction at every stage, internally and
externally. TQM, combined with effective leadership, results in a Dhaka Ice Cream
Industry Ltd doing the right things right, first time.
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The core of TQM is the customer-supplier interfaces, both externally and internally,
and at each interface lay a number of processes. This core must be surrounded by
commitment to quality, communication of the quality message, and recognition of the
need to change the culture of the Dhaka Ice Cream Industry Ltd to create total
quality. These are the foundations of TQM, and they are supported by the key
management functions of people, processes and systems in the organisation.
THE PHILOSOPHY OF TQM
What characterizes TQM is the focus for Dhaka Ice Cream Industry Ltd on identifying
root causes of quality problems and correcting them at the source, as opposed to
inspecting the product after it has been made. Not only does TQM encompass the
entire Dhaka Ice Cream Industry Ltd, but it stresses that quality is customer driven.
TQM attempts to embed quality in every aspect of the organization. It is concerned with
technical aspects of quality as well as the involvement of people in quality, such as
customers, company employees, and suppliers. Dhaka Ice Cream Industry Ltd looks
at the specific concepts that make up the philosophy of TQM.
Customer Focus
The first, and overriding, feature of TQM is the company’s focus on its customers.
Dhaka Ice Cream Industry Ltd quality is defined as meeting or exceeding customer
expectations. The goal is to first identify and then meet customer needs. TQM
recognizes that a perfectly produced product has little value if it is not what the
customer wants. Therefore, we can say that quality is customer driven. However, it is
not always easy to determine what the customer wants, because tastes and
preferences change. Also, customer expectations often vary from one customer to the
next.
Continuous Improvement
Another concept of the TQM philosophy is for the Dhaka Ice Cream Industry Ltd focus
on continuous improvement. Traditional systems operated on the assumption that
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once a company achieved a certain level of quality, it was successful and needed no
further improvements. We tend to think of improvement in terms of plateaus that are to
be achieved, such as passing a certification test or reducing the number of defects to a
certain level.
Employee Empowerment
Dhaka Ice Cream Industry Ltd of the TQM philosophy is to empower all employees to
seek out quality problems and correct them. With the old concept of quality, employees
were afraid to identify problems for fear that they would be reprimanded. Often poor
quality was passed on to someone else, in order to make it “someone else’s problem.”
Use of Quality Tools
Dhaka Ice Cream Industry Ltd sees that TQM places a great deal of responsibility on
all workers. If employees are to identify and correct quality problems, they need proper
training. They need to understand how to assess quality by using a variety of quality
control tools, how to interpret findings, and how to correct problems. In this section we
look at seven different quality tools. They are easy to understand, yet extremely useful
in identifying and analyzing quality problems. Sometimes workers use only one tool at a
time, but often a combination of tools is most helpful.
Cause-and-Effect Diagrams Dhaka Ice Cream Industry Ltd cause-and-effect
diagrams are charts that identify potential causes for particular quality problems. They
are often called fishbone diagrams because they look like the bones of a fish. These
causes could be related to the machines, workers, measurement, suppliers, materials,
and many other aspects of the production process. Each of these possible causes can
then have smaller “bones” that address specific issues that relate to each cause.
Flowcharts A flowchart is a schematic diagram for Dhaka Ice Cream Industry Ltd of
the sequence of steps involved in an operation or process. It provides a visual tool that
is easy to use and understand. By seeing the steps involved in an operation or process,
everyone develops a clear picture of how the operation works and where problems
could arise.
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Checklists A checklist is a list of common Dhaka Ice Cream Industry Ltd defects and
the number of observed occurrences of these defects. It is a simple yet effective fact-
finding tool that allows the worker to collect specific information regarding the defects
observed. This means that the plant needs to focus on this specific problem—for
example, by going to the source of supply or seeing whether the material rips during a
particular production process. A checklist can also be used to focus on other
dimensions, such as location or time.
Control Charts Control charts are a very important quality control tool. Dhaka Ice
Cream Industry Ltd will study the use of control charts at great length in the next.
These charts are used to evaluate whether a process is operating within expectations
relative to some measured value such as weight, width, or volume. For example, we
could measure the weight of a sack of flour, the width of a tire, or the volume of a bottle
of soft drink. When the production process is operating within expectations, we say that
it is “in control.”
Scatter Diagrams Scatter diagrams are graphs that Dhaka Ice Cream Industry Ltd
how two variables are related to one another. They are particularly useful in detecting
the amount of correlation, or the degree of linear relationship, between two variables.
For example, increased production speed and number of defects could be correlated
positively; as production speed increases, so does the number of defects. Two variables
could also be correlated negatively, so that an increase in one of the variables is
associated with a decrease in the other.
Histograms A histogram is a chart that Dhaka Ice Cream Industry Ltd shows the
frequency distribution of observed values of a variable. We can see from the plot what
type of distribution a particular variable displays, such as whether it has a normal
distribution and whether the distribution is symmetrical.
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Product Design
Quality Function Deployment A critical aspect of building quality into a product is to
ensure that the product design meets customer expectations. This typically is not as
easy as it seems. Dhaka Ice Cream Industry Ltd customers often speak in everyday
language. For example, a product can be described as “attractive,” “strong,” or “safe.”
However, these terms can have very different meaning to different customers. What one
person considers being strong, another may not. To produce a product that customers
want, we need to translate customers’ everyday language into specific technical
requirements.
Process Management
According to TQM a quality product comes from a quality process. This means that
quality should be built into the process. Quality at the source is the belief that Dhaka
Ice Cream Industry Ltd it is far better to uncover the source of quality problems and
correct it than to discard defective items after production. If the source of the problem is
not corrected, the problem will continue.
Managing Supplier Quality
TQM extends the concept of quality to a company’s suppliers. Traditionally, companies
tended to have numerous suppliers that engaged in competitive price bidding. When
materials arrived, an inspection was performed to check their quality. TQM views this
practice as contributing to poor quality and wasted time and cost. The philosophy of
TQM extends the concept of quality to suppliers and ensures that they engage in the
same quality practices. Dhaka Ice Cream Industry Ltd suppliers meet preset quality
standards, materials do not have to be inspected upon arrival. Today, many companies
have a representative residing at their supplier’s location, thereby involving the supplier
in every stage from product design to final production.
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QUALITY AWARDS AND STANDARDS
ISO 9000 Standards
Increases in international trade during the 1980s created a need for the development of
universal standards of quality. Universal standards were seen as necessary in order for
companies to be able to objectively document their quality practices around the world.
Then in 1987 the International Organization for Standardization (ISO) published its first
set of standards for quality management called ISO 9000. The International
Organization for Standardization (ISO) is an international organization whose purpose is
to establish agreement on international quality standards. It currently has members from
91 countries, including the United States. To develop and promote international quality
standards, ISO 9000 has been created. ISO 9000 consists of a set of standards and a
certification process for companies. By receiving ISO 9000 certification, companies
demonstrate that they have met the standards specified by the ISO.
Dhaka Ice Cream Industry Ltd standards are applicable to all types of companies and
have gained global acceptance. In many industries ISO certification has become a
requirement for doing business. Also, ISO 9000 standards have been adopted by the
European Community as a standard for companies doing business in Europe. In
December 2000 the first major changes to ISO 9000 were made, introducing the
following three new standards:
• ISO 9000:2000–Quality Management Systems–Fundamentals and Standards:
Provides the terminology and definitions used in the standards. It is the starting point for
understanding the system of standards.
• ISO 9001:2000–Quality Management Systems–Requirements: This is the standard
used for the certification of a firm’s quality management system. It is used to
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demonstrate the conformity of quality management systems to meet customer
requirements.
• ISO 9004:2000–Quality Management Systems–Guidelines for Performance: Provides
guidelines for establishing a quality management system. It focuses not only on meeting
customer requirements but also on improving performance.
ISO 14000 Standards
The need for standardization of quality created an impetus for the development of other
standards. In 1996 the International Standards Organization introduced standards for
evaluating a company’s environmental responsibility. These standards, termed ISO
14000, Premier Cement Mills Ltd focus on three major areas:
• Management systems standards measure systems development and integration of
environmental responsibility into the overall business.
• Operations standards include the measurement of consumption of natural resources
and energy.
• Environmental systems standards measure emissions, effluents, and other waste
systems.
Dhaka Ice Cream Industry Ltd greater interest in green manufacturing and more
awareness of environmental concerns, ISO 14000 may become an important set of
standards for promoting environmental responsibility.
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SIX SIGMA
Dhaka Ice Cream Industry Ltd has been seeing increasing organizations that have
approached us to come from the non-traditional manufacturing based environment. This
includes non manufacturing businesses (eg. health care, financial services,
government, nonprofit) and non manufacturing functions in manufacturing firms (eg.
accounts, HR, legal). In the shift of the economy from being manufacturing based to
being service based, profitability of organization is derived beyond simply in the
effective management of operations on the factory floor.
The concepts and frameworks behind operations management is increasingly being
recognized as an effective enabler for improving business performance. This is
especially important for non manufacturing organizations, which may not have the
legacy of a continual improvement culture. For example, Dhaka Ice Cream Industry
Ltd Six Sigma can be adopted as an initiative to guide improvement strategy and
overall process management system. Six Sigma uses many individual tools that
includes process mapping, cause-effect matrix, measurement system analysis, failure
modes and effect analysis (FMEA), multi-vari study, design of experiments and control
plans, that are linked in the DMAIC (define, measure, analyze, improve, control)
framework to ensure proper integration. The strategic deployment of an operations
management methodology like Six Sigma will be useful in all broadened aspects of
business operations. But it will be critical that the road map be customized based on
each organization’s goals and objectives, characteristics of culture, nature of processes,
and background and skills of employees; and the existing infrastructure and
management systems.
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Method OF SIX SIGMA:
Strong Leadership: One key component of the Six Sigma method, from an Premier
Cement Mills Ltd operations management perspective, is a decisive, encouraging
leader who knows the current processes and who can objectively oversee his
organization's efforts to improve them.
A leader who is not willing to collaborate with his management team to identify flaws in
current processes, or who would rather eliminate entire processes rather than figure out
ways to fine-tune or upgrade them, may not be a good candidate to lead his company
through Six Sigma initiatives. Complete transparency is essential when reshaping an
organization.
Risk Management: Another important factor in the Six Sigma way is the assessment
and proper management of risk. By making product and service delivery a better-
defined process in terms of quality and performance objectives that must be reached,
Premier Cement Mills Ltd is well on its way to applying Six Sigma strategies
effectively.
Metrics: Metrics are a measure of how performance improvement strategies within your
organization are progressing. According to the authors of "Lean Six Sigma That Works,"
metrics tell you how quickly you are getting product to your customers and how much
money and time is spent on rework. Metrics can also incorporate Premier Cement
Mills Ltd statistics such as how many calls are handled in your call center each hour.
3.3 Process and capacity design38
Dhaka Ice Cream Industry Ltd Production systems design involves planning for the inputs,
transformation activities, and outputs of a production operation. Design plays a major role
because they entail significant investment of funds and establish cost and productivity patterns
that continue in future.
The capacity of the Dhaka Ice Cream Industry Ltd manufacturing unit can be expressed in
number of units of output per period. In some situations measuring capacity is more complicated
when they manufacture multiple products. In such situations, the capacity is expressed as man-
hours or machine hours.
DESIGN CAPACITY
Dhaka Ice Cream Industry Ltd designed capacity of a facility is the planned or
engineered rate of output of goods or services under normal or full scale operating
conditions. The uncertainty of future demand is one of the most perplexing problems
faced by new facility planners. Dhaka Ice Cream Industry Ltd does not plan for
enough regular capacity to satisfy all their immediate demands.
Design for a minimum demand would result in high utilization of facilities but results in
inferior service and dissatisfaction of customers because of inadequate capacity. The
design capacity should reflect management’s strategy for meeting the demand. The
best approach is to plan for some in-between level of capacity.
System/effective capacity: Dhaka Ice Cream Industry Ltd system capacity is the
maximum output of the specific product or product mix the system of workers and
machines is capable of producing as an integrated whole.
System capacity is less than design capacity or at the most equal it because of the
limitation of product mix, quality specification, and breakdowns. The actual is even less
because of many factors affecting the output such as actual demand, downtime due to
machine/equipment failure, unauthorized absenteeism. The system capacity is less than
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design capacity because of long-range uncontrollable factors. The actual output is still
reduced because of short-term effects such as breakdown of equipment, inefficiency of
labour. The system efficiency is expressed as ratio of actual measured output to the
system capacity.
Dhaka Ice Cream Industry Ltd different measures of capacity are useful in defining
two measures of system effectiveness: efficiency and utilization.
Efficiency is the ratio of actual output to effective capacity. Utilization is the ratio of
actual output to design capacity.
Efficiency = Actual output/Effective capacity
Utilization =Actual output/Design capacity
It is common for managers to focus exclusively on efficiency, but in many instances, this
emphasis can be misleading. This happens when effective capacity is low compared with
design capacity. In those cases, high efficiency would seem to indicate effective use of
resources when it does not.
CAPACITY PLANNING
Design of the Dhaka Ice Cream Industry Ltd production system involves planning for
the inputs, conversion process and outputs of production operation. The effective
management of capacity is the most important responsibility of production management.
The objective of capacity management (i.e. planning and control of capacity) is to match
the level of operations to the level of demand.
Capacity planning is to be carried out keeping in mind future growth and expansion
plans, market trends, sales forecasting, etc. It is a simple task to plan the capacity in
case of stable demand. But in practice the demand will be seldom stable. The
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fluctuation of demand creates problems regarding the procurement of resources to meet
the customer demand. Capacity decisions are strategic in nature. Capacity is the rate of
productive capability of a facility. Capacity is usually expressed as volume of output per
period of time.
PROCESS OF CAPACITY PLANNING
Capacity planning is concerned with defining the long-term and the short-term capacity
needs of a Dhaka Ice Cream Industry Ltd and determining how those needs will be
satisfied. Capacity planning decisions are taken based upon the consumer demand and
this is merged with the human, material and financial resources of the Dhaka Ice
Cream Industry Ltd.
Capacity requirements of Dhaka Ice Cream Industry Ltd can be evaluated from two
perspectives—long-term capacity strategies and short-term capacity strategies.
1. Long-term capacity strategies: Dhaka Ice Cream Industry Ltd long-term capacity
requirements are more difficult to determine because the future demand and technology
are uncertain. Forecasting for five or ten years into the future is more risky and difficult.
Even sometimes company’s today’s products may not be existing in the future. Long-
range capacity requirements are dependent on marketing plans, product development
and life-cycle of the product. Long-term capacity planning is concerned with
accommodating major changes that affect overall level of the output in long-term.
Marketing environmental assessment and implementing the long term capacity plans in
a systematic manner are the major responsibilities of management. Following
parameters will affect long-range capacity decisions
2. Short-term capacity strategies: Dhaka Ice Cream Industry Ltd Managers often
use forecasts of product demand to estimate the short-term workload the facility must
handle. Managers looking ahead up to 12 months, anticipate output requirements for
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different products, and services. Managers then compare requirements with existing
capacity and then take decisions as to when the capacity adjustments are needed.
For short-term periods of up to one year, fundamental capacity is fixed. Major facilities
will not be changed. Many short-term adjustments for increasing or decreasing capacity
are possible. The adjustments to be required depend upon the conversion process like
whether it is capital intensive or labour intensive or whether product can be stored as
inventory.
Capital-intensive processes depend on physical facilities, plant and equipment. Short-
term capacity can be modified by operating these facilities more or less intensively than
normal. In labour intensive processes short-term capacity can be changed by laying off
or hiring people or by giving overtime to workers. The strategies for changing capacity
also depend upon how long the product can be stored as inventory.
The short-term capacity strategies of Dhaka Ice Cream Industry Ltd are:
1. Inventories: Stock finished goods during slack periods to meet the demand
during peak period.
2. Backlog: During peak periods, the willing customers are requested to wait and
their orders are fulfilled after a peak demand period.
3. Employment level (hiring or firing): Hire additional employees during peak
demand period and lay off employees as demand decreases.
4. Employee training: Develop multi skilled employees through training so that
they can be rotated among different jobs. The multi skilling helps as an
alternative to hiring employees.
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5. Subcontracting: During peak periods, hire the capacity of other firms
temporarily to make the component parts or products.
6. Process design: Change job contents by redesigning the job.
3.4 Location strategy
Being in the right location is a key ingredient in a business's success. Dhaka Ice Cream
Industry Ltd selects the wrong location, it may have adequate access to customers,
workers, transportation, materials, and so on. Consequently, location often plays a
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significant role in a company's profit and overall success. A location strategy is a plan
for obtaining the optimal location for a company by identifying company needs and
objectives, and searching for locations with offerings that are compatible with these
needs and objectives. Generally, this means the firm will attempt to maximize
opportunity while minimizing costs and risks. Premier Cement Mills Ltd established
their factory location in currently Tejgaon, Dhaka.
Dhaka Ice Cream Industry Ltd location strategy should conform with, and be part of,
its overall corporate strategy. Hence, if a company strives to become a global leader in
telecommunications equipment, for example, it must consider establishing plants and
warehouses in regions that are consistent with its strategy and that are optimally located
to serve its global customers. A company's executives and managers often develop
location strategies, but they may select consultants (or economic development groups)
to undertake the task of developing a location strategy, or at least to assist in the
process, especially if they have little experience in selecting locations.
Dhaka Ice Cream Industry Ltd location strategy typically involves the following factors:
1. Facilities. A facility planning involves determining what kind of space a company
will need given its short-term and long-term goals.
2. Feasibility. Feasibility analysis is an assessment of the different operating costs
and other factors associated with different locations.
3. Logistics. Logistics evaluation is the appraisal of the transportation options and
costs for the prospective manufacturing and warehousing facilities.
4. Labor. Labor analysis determines whether prospective locations can meet a
company's labor needs given its short-term and long-term goals.
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5. Community and site. Community and site evaluation involves examining
whether a company and a prospective community and site will be compatible in the
long-term.
6. Trade zones. Companies may want to consider the benefits offered by free-trade
zones, which are closed facilities monitored by customs services where goods can
be brought without the usual customs requirements. The United States has about
170 free-trade zones and other countries have them as well.
7. Political risk. Companies considering expanding into other countries must take
political risk into consideration when developing a location strategy. Since some
countries have unstable political environments, companies must be prepared for
upheaval and turmoil if they plan long-term operations in such countries.
8. Governmental regulation. Companies also may face government barriers and
heavy restrictions and regulation if they intend to expand into other countries.
Therefore, companies must examine governmental—as well as cultural—obstacles
in other countries when developing location strategies.
9. Environmental regulation. Companies should consider the various
environmental regulations that might affect their operations in different locations.
Environmental regulation also may have an impact on the relationship between a
company and the community around a prospective location.
10. Incentives. Incentive negotiation is the process by which a company and a
community negotiate property and any benefits the company will receive, such as
tax breaks. Incentives may place a significant role in a company's selection of a site
3.5 Layout strategy
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In industrial engineering, Dhaka Ice Cream Industry Ltd process layout is the
floor plan of a plant, which is installed by industrial engineers to improve
the efficiency by arranging equipment according to their functions. Dhaka Ice Cream
Industry Ltd the main idea is to arrange or gather machines or equipments of the same
function into one group or department.
Important facts:
1. It is a flexible layout
2. It is excellent for low to medium production quantity
3. It is excellent for medium to high production variation
4. The workers should be skilled and qualified
5. It has a high work in process
6. Its main disadvantage is the low production rate.
Effective Process Layout
1. Minimize material handling costs
2. Utilize space efficiently
3. Utilize labor efficiently
4. Eliminate bottlenecks
5. Facilitate communication and interaction between workers, workers and supervisors
6. Eliminate waste or redundant material
7. Promote product and service and quality
8. Provide a visual control of activities
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The generated layout must pass a series of checks in a process known as physical
verification. The most common checks in this verification process Dhaka Ice Cream
Industry Ltd are:
design rule checking (DRC) ,
layout versus schematic (LVS) ,
parasitic extraction,
antenna rule checking, and
Electrical rule checking (ERC).
When all verification is complete, the data is translated into an industry standard format,
typically GDSII, and sent to a semiconductor foundry. The process of sending this data
to the foundry is called tapeout due to the fact the data used to be shipped out on a
magnetic tape. The foundry converts the data into another format and uses it to
generate the photomasks used in a photolithographic process of semiconductor device
fabrication.
In the earlier, simpler, days of IC design, layout was done by hand using opaque tapes
and films, much like the early days of PCB design. Modern IC layout is done with the aid
of IC layout editorsoftware, mostly automatically using EDA tools, including place and
route tools or schematic driven layout tools. The manual operation of choosing and
positioning the geometric shapes is informally known as "polygon pushing.
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3.6 Human resources and job design
Human resource management aims at optimum utilization of available human potential.
For this purpose, it is essential to make every one understand their job and expectations
from the job. This enables them to charter their behaviour appropriately. Job analysis is
a process of determining the essential characteristics that are necessary to perform the
job effectively. Dhaka Ice Cream Industry Ltd job analysis conveys information to take
a number of important decisions relating to human resources management. Job design
is next to job analysis. Job design involves systematic attempts to organize tasks, duties
and responsibilities into a unit of work to achieve certain objectives. Job design
integrates the work content and qualifications required for each job that meets the
needs of employee and the Organization. Designing a job analysis leads to preparation
of job description and job specification.
JOB ANALYSIS
Dhaka Ice Cream Industry Ltd job analysis is a process of determining which
characteristics are necessary for satisfactory job performance and analyzing the
environmental conditions in which the job is performed. It analyzes the work content of
job & job content of work. The process of job analysis leads to development of two
documents viz., job description and job specification.
Significance Job Analysis of Dhaka Ice Cream Industry Ltd
Job analysis is a vital tool in taking a variety of human resource decisions. It is used to
design and execute a number of human resource management activities and programs.
Dhaka Ice Cream Industry Ltd is described here:
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1. Manpower Planning: job analysis helps in forecasting manpower requirements
based on the knowledge and skills and quality of manpower needed in organization.
2. Recruitment: A carefully designed job analysis provides information as to what
sources of recruitment are to be used to hire employees. For example, job analysis in a
retail stores about merchandise sorters tells that village level schools are potential
source of recruitment.
3. Selection: Selection of the right candidate to the right job can only be done with the
help of job analysis. In the case of retail stores, a billing assistant can be selected with
the knowledge of accounting, cash, and computer operations. This is possible with the
help of job analysis.
4. Training and Career Development: Job analysis provides valuable information to
develop training programs. It provides information about what skills are to be trained. It
also provides information about various techniques to be used in career development of
employees.
5. Placement and socialization: After people are selected and trained, they must be
placed in suitable jobs. Job analysis provides information about the suitability of jobs. A
clear job analysis guides the process to socialize the employees to develop sound
relationships with all those persons.
6. Compensation: Job analysis provides information as to how much compensation
and other financial and non-financial benefits to be associated with each job.
7. Employee Safety and Welfare: Job analysis details information on working
conditions. Thus, management tries to provide safety and welfare measures that are
outlined in job analysis.
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8. Performance Appraisal: Performance of employees is appraised based on standard
criteria provided in the job analysis.
9. Counseling: A good job analysis provides information to the superiors about the
jobs. They use this information to guide and counsel employees about their career
options, performance, training requirements and skill up-gradation.
10. Strategic Planning: Job analysis enables human resource manager to develop a
long-range strategic plan in all concerned areas of human resources.
Components of Job Analysis for Premier Cement Mills Ltd
1. Job Description: It is an important document for Dhaka Ice Cream Industry Ltd. It
is descriptive in nature. It is useful to identify a job for consideration by job analyst.
Important questions to be answered through job description are: What should be done?
- Why it should be done? -Where it should be done? There is no universal format of
writing job description. According to Ghorpade the following information is common in
most of the job descriptions.
● Job title: title of the job and other identifying information such as wages, salaries,
other benefits
● Summary: summary is written in one or two lines that describes what outputs are
expected from job incumbents.
● Equipment: a clear statement of tools, equipment and other information required to
perform job effectively.
● Environment: a clear description of the working conditions of the job, the location
and other characteristics of work environment such as hazards, noise, temperature,
cleanliness etc.
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● Activities: a description about the job duties, responsibilities, and expected behaviour
on the job. A description of social interactions associated with the job such as the size
of work group, interpersonal interaction on the job is made.
Job analyst writes job description in consultations with the workers and supervisors.
After writing draft job description, comments and criticism are invited to improve its
content. Final draft is then prepared. Job description is written either by making
personal observation or using questionnaire to collect relevant information from
supervisors and workers. Job description should be reviewed from time to time.
2. Job Specifications: It also known as man or employee specifications is prepared on
the basis of job specification. It specifies the qualities required in a job incumbent for the
effective performance of the job.
Dhaka Ice Cream Industry Ltd basic contents of a job specification are as follows:
Personal characteristics such as education, job experience, age, sex, and extra
co-curricular activities.
Physical characteristics such as height, weight, chest, vision, hearing, health,
voice poise, and hand and foot coordination, (for specific positions only).
Mental characteristics such as general intelligence, memory, judgment, foresight,
ability to concentrate, etc.
Social and psychological characteristics such as emotional ability, flexibility,
manners, drive, conversational ability, interpersonal ability, attitude, values,
creativity etc.
3. Job evaluation: It is a process of determining the relative worth of a job. It is a
process which is helpful even for framing compensation plans by the personnel
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manager. Dhaka Ice Cream Industry Ltd job evaluation as a process is advantageous
to a company in many ways:
1. Reduction in inequalities in salary structure - It is found that people and their
motivation is dependent upon how well they are being paid. Therefore the main
objective of job evaluation is to have external and internal consistency in salary
structure so that inequalities in salaries are reduced.
2. Specialization - Because of division of labour and thereby specialization, a large
number of enterprises have got hundred jobs and many employees to perform them.
Therefore, an attempt should be made to define a job and thereby fix salaries for it. This
is possible only through job evaluation.
3. Helps in selection of employees - The job evaluation information can be helpful at
the time of selection of candidates. The factors that are determined for job evaluation
can be taken into account while selecting the employees.
4. Harmonious relationship between employees and manager - Through job
evaluation, harmonious and congenial relations can be maintained between employees
and management, so that all kinds of salaries controversies can be minimized.
5. Standardization - The process of determining the salary differentials for different
jobs become standardized through job evaluation. This helps in bringing uniformity into
salary structure.
6. Relevance of new jobs - Through job evaluation, one can understand the relative
value of new jobs in a concern.
According to Kimball and Kimball, “Job evaluation represents an effort to determine the
relative value of every job in a plant and to determine what the fair basic wage for such
a job should be.” Thus, job evaluation is different from performance appraisal. In job
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evaluation, worth of a job is calculated while in performance appraisal, the worth of
employee is rated.
METHODS OF JOB DESIGN
Job Simplification: In the Dhaka Ice Cream Industry Ltd job simplification technique,
the job is simplified or specialized. A given job is divided into small sub-parts and each
part is assigned to one individual employee. Job simplification is introduced when job
designers feel that the jobs are not specialized enough.
Job Rotation: Premier Cement Mills Ltd job rotation implies systematic movement of
employees from one job to the other. Job remains unchanged but employees
performing them shift from one job to the other. With job rotation, an employee is given
an opportunity to perform different jobs, which enriches his skills, experience and ability
to perform different jobs. It is the process of preparing employees at a lower level to
replace someone at the next higher level. It is generally done for the designations that
are crucial for the effective and efficient functioning of the organization. By this to some
extent boredom is reduced. However for this people interest is primary importance. By
this they can also learn new things, new techniques, and new ways of doing better
work. It may also happen that over a period of time they will be finding a job for which
they are better suitable. They can also contribute in a better way to achieve the goals of
the organization.
This aspect of job rotation can be seen widely applied in Retail scenario, where end
user or consumer is in direct presence all through. This has for large extent reduced
boredom, reduced irregularities due to familiarity, acquired new skills & assuming new &
varied responsibilities. In other words it will lead to better job satisfaction, which is the
ultimate goal for better contribution.
Job Enlargement: Job enlargement means expanding the scope of the job. Many tasks
and duties are aggregated and assigned to a single job. It is opposite to job
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simplification. Premier Cement Mills Ltd job enlargement is an extension of Job
rotation, exposing the people to several jobs without changing the job duties to be
performed. He is taken off the boring job for a while & is allowed to take up a related
task & so on. Monotony is relieved temporarily. Critics are of the opinion that this
approach involves nothing more than having to perform several boring jobs rather than
one. Job enlargement is to expand in several tasks than just to do one single task. It is
also the horizontal expansion of a job. It involves the addition of tasks at the same level
of skill and responsibility. It is done to keep workers from getting bored. This would also
be considered multi tasking by which one person would do several persons jobs, saving
the company money and man hours that normally would be paid to additional workers.
Small companies may not have as many opportunities for promotions, so they try to
motivate employees through job enlargement.
Job Enrichment: Job enrichment means making the job rich in its contents so that an
employee will get more satisfaction while performing that job. It upgrades the
responsibility, scope and challenge. A vast majority of the jobs are repetitive &
monotonous in nature. This results in reducing the motivational content& human
element of the job with repercussions on performance. Premier Cement Mills Ltd
central focus of job enrichment is giving people more control over their work (lack of
control is a key cause of stress, and therefore of unhappiness.) Where possible, allow
them to take on tasks that are typically done by supervisors. This means that they have
more influence over planning, executing, and evaluating the jobs they do. In enriched
jobs, people complete activities with increased freedom, independence, and
responsibility. They also receive plenty of feedback, so that they can assess and correct
their own performance.
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3.7 Supply chain management
Dhaka Ice Cream Industry Ltd supply chain is the network of activities that deliver a
finished product or service to the customer. These include sourcing raw materials and
parts, manufacturing and assembling the products, warehousing, order entry and
tracking, distribution through the channels, and delivery to the customer. An
organization’s supply chain is facilitated by an information system that allows relevant
information such as sales data, sales forecasts, and promotions to be shared among
members of the supply chain. Figure 4-1 shows a basic supply chain structure.
Dhaka Ice Cream Industry Ltd Supply chain management is the vital business
function that coordinates and manages all the activities of the supply chain linking
suppliers, transporters, internal departments, third-party companies, and information
systems. Supply chain management entails
o Coordinating the movement of goods through the supply chain from
suppliers to manufacturers to distributors
o Sharing relevant information such as sales forecasts, sales data, and
promotional campaigns among members of the chain
A prime example of operations management (OM), supply chain management provides
the company with a sustainable, competitive advantage, such as quick response time,
low cost, state-of-the-art quality design, or operational flexibility.
KEY ISSUES IN SUPPLY CHAIN MANAGEMENT
In this section, Dhaka Ice Cream Industry Ltd introduce some of the supply chain
management issues that we discuss in much more detail throughout the remaining
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chapters. Dhaka Ice Cream Industry Ltd issues span a large spectrum of a firm’s
activities, from the strategic through the tactical to the operational level:
• The strategic level deals with decisions that have a long-lasting effect on the firm.
This includes decisions regarding product design, what to make internally and what to
outsource, supplier selection, and strategic partnering as well as decisions on the
number, location, and capacity of warehouses and manufacturing plants and the flow of
material through the logistics network.
• The tactical level includes decisions that are typically updated anywhere between
once every quarter and once every year. These include purchasing and production
decisions, inventory policies, and transportation strategies, including the frequency with
which customers are visited.
• The operational level refers to day-to-day decisions such as scheduling, lead time
quotations, routing, and truck loading.
Below Dhaka Ice Cream Industry Ltd introduce and discuss some of the key issues,
questions, and trade-offs associated with different decisions.
Distribution Network Configuration Dhaka Ice Cream Industry Ltd considers
several plants producing products to serve a set of geographically dispersed retailers.
The current set of warehouses is deemed inappropriate, and management wants to
reorganize or redesign the distribution network.
Inventory Control Dhaka Ice Cream Industry Ltd; consider a retailer that maintains
an inventory of a particular product. Since customer demand changes over time, the
retailer can use only historical data to predict demand. The retailer’s objective is to
decide at what point to reorder a new batch of the product, and how much to order so
as to minimize inventory ordering and holding costs.
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Production Sourcing Dhaka Ice Cream Industry Ltd, there is a need to carefully
balance transportation and manufacturing costs. In particular, reducing production costs
typically implies that each manufacturing facility is responsible for a small set of
products so that large batches are produced, hence reducing production costs.
Distribution Strategies Dhaka Ice Cream Industry Ltd important challenge faced by
many organizations is how much should they centralize (or decentralize) their
distribution system. What is the impact of each strategy on inventory levels and
transportation costs? What about the impact on service levels.
Supply Chain Integration and Strategic Partnering As observed earlier, designing
and implementing a globally optimal supply chain is quite difficult because of its
dynamics and the conflicting objectives employed by different facilities and\ partners.
Nevertheless, Dhaka Ice Cream Industry Ltd success stories demonstrate not only
that an integrated, globally optimal supply chain is possible, but that it can have a huge
impact on the company’s performance and market share.
Outsourcing and Offshoring Dhaka Ice Cream Industry Ltd Strategies Rethinking
your supply chain strategy not only involves coordinating the different activities in the
supply chain, but also deciding what to make internally and what to buy from outside
sources.
Product Design Dhaka Ice Cream Industry Ltd effective design plays several critical
roles in the supply chain. Most obviously, certain product designs may increase
inventory holding or transportation costs relative to other designs, while other designs
may facilitate a shorter manufacturing lead time.
Customer Value Premier Cement Mills Ltd customer value is the measure of a
company’s contribution to its customer, based on the entire range of products, services,
and intangibles that constitute the company’s offerings. In recent years, this measure
has superseded measures such as quality and customer satisfaction.
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3.8 Inventory management
Dhaka Ice Cream Industry Ltd will continue to do business as long as they meet
consumer demands. By producing and selling goods and services that satisfy consumer
needs businesses will compete in the marketplace. What firms create for the
marketplace, economists call utility—the want-satisfying power of a good or service.
Dhaka Ice Cream Industry Ltd has defined four types of utility: time, place, ownership,
and form. Time, place, and ownership utility exist through marketing and distribution —
having goods and services available for consumers at locations convenient for them
and that facilitate title transfer at the time of purchase.
Form utility is created when Dhaka Ice Cream Industry Ltd raw materials are
converted into finished goods or services. A chair is the sum of wood, design,
manufacture and assembly. Cotton is harvested from fields, processed into thread,
woven into fabric, and then by cutting, shaping, sewing, adding zippers and belt loops
are made into Wrangler jeans. Dhaka Ice Cream Industry Ltd production function is
responsible for the creation of form utility.
Production is the process of using people and machinery to convert materials into
finished goods and services. Although the term production is sometimes used
interchangeably with manufacturing, production is a broader term and includes a
number of non-manufacturing processes. For example, production encompasses such
extractive industries as fishing, lumber, and mining. Production also applies to the
creation of services. Services are intangible outputs of the production system. They
include outputs as diverse as trash hauling, education, haircuts, tax accounting, health
delivery systems, mail services, transportation, and lodging.
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Inventory Control
Dhaka Ice Cream Industry Ltd inventory control balances the need to have inventory
on hand to meet demand with the costs involved in carrying the inventory. The financial
costs of carrying inventory are the funds tied up in it that cannot be used in other
activities of the business. Among the expenses involved in storing inventory are
warehousing, taxes, insurance, and maintenance. Too much inventory represents
wasted expenditures. But a shortage of raw materials, parts, goods, or sales often
means lost production—and delays in production mean unhappy customers if the
delays result in late delivery of promised merchandise. Dhaka Ice Cream Industry Ltd
lose business when they are consistently unable to meet promised delivery dates or
when their shelves are empty. These two costs must be balanced to produce
acceptable inventory levels. A commonly used technique for monitoring the amount and
location of inventory is the maintenance of a perpetual inventory.
This inventory control system continuously updates all major inventory systems. The
system is typically computerized and frequently will automatically determine orders to
be made and print purchase orders at the appropriate times. The scanning devices
used in many supermarkets are typically linked to perpetual inventory systems used in
reordering merchandise. As a shopper's purchase is recorded, each item is subtracted
from the inventory data stored in the computer.
Just-in-Time Inventory System: Just ten years ago, you could walk into a typical
American factory and see several weeks' worth of parts and supplies piled high
throughout the plant. Walk into a similar factory in Japan and you would have noticed no
such inventory backlog. The Japanese plant then and now may have only enough
supplies on hand to keep it going for a day. This shortage is hardly accidental. It is an
essential ingredient of the just-in-time (JIT) inventory system used by major Dhaka
Ice Cream Industry Ltd for years and gaining acceptance in American firms.
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The JIT system does what its name implies: It supplies needed parts to the production
line on a last-minute basis. As a result, factory inventory levels are as low as possible
and production costs are held down. Just-in-time delivery makes it easy to spot and
expose production problems before they are built into the system, and it shifts
responsibility for the problems from the consumer to the suppliers. If a part are
defective, the assembly line shuts down and the supplier risks losing the firm's
business? Often, when a slightly defective part is found in a U.S. plant, it is made to fit
rather than shipped back to the supplier. With weeks of inventory on hand, companies
are forced into this decision to avoid a production slowdown.
Materials Requirement Planning (MRP)
In order to implement the production plan of Dhaka Ice Cream Industry Ltd, an
adequate amount of the raw materials, components, and operating supplies must be
available when needed. For relatively simple products with few components provided by
numerous suppliers in the immediate vicinity, this is a relatively simple process. A
telephone call may be sufficient to secure overnight delivery of needed materials, and
management enjoys the luxury of minimal investments in inventory and little risk of
production downtime resulting from lack of needed materials.
Dhaka Ice Cream Industry Ltd process of ensuring adequate amounts of materials
and parts in the right amounts at the right times becomes much more complicated when
complex products are involved. For a firm such as Ford Motor Company, determining
the efficient sequencing of precisely the exact amounts of materials at exactly the right
times can be a nightmare. If the components are received too early, they must be stored
until needed.
Materials requirement planning (MRP) is a production planning system designed to
ensure that a firm has the parts and materials needed to produce its products and
services at the right time and place and in the right amounts. Production managers use
special computer programs to create schedules that identify the specific parts and
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materials required to produce an item, the exact quantities required of each, and the
dates when orders should be released to suppliers and should be received for best
timing within the production cycle.22 MRP is invaluable in Dhaka Ice Cream Industry
Ltd production systems involving complex products assembled with parts and
materials secured from outside suppliers. It is even more important in major products
such as the B-2 bomber, where entire subassemblies of the plane are produced by
dozens of firms scattered throughout the nation (in every state except Alaska and
Hawaii). MRP's computer program coordinates the deadlines for each subassembly in
addition to deadlines for the overall assembly.
The Five Steps in Production Control
Dhaka Ice Cream Industry Ltd production control can be thought of as a five-step
sequence: planning, routing, scheduling, dispatching, and follow up.
Production Planning. Dhaka Ice Cream Industry Ltd production control called
production planning determines the amount of resources (including raw materials and
other components) needed to produce a certain amount of goods or services. During
the production planning process, a bill of materials is developed, listing all parts and
materials needed to produce a good or service. Comparison of the needed parts and
materials with the firm's perpetual inventory allows the purchasing department to
determine the additional purchases required to ensure availability of needed amounts.
The MRP system establishes delivery schedules so the needed parts and materials will
arrive at regular intervals as required during the production process. Similar
determinations are made to ensure that the necessary machines and workers are
available when needed. Although material inputs contribute to serviceproducing
systems, such systems tend to depend more on personnel than on materials.
Routing. Dhaka Ice Cream Industry Ltd of production control that determines the
sequence of work throughout the facility is called routing. It specifies where and by
whom each aspect of production will be performed. Routing is determined by two
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factors: the nature of the good or service and the facility layouts discussed earlier—
product, process, fixed-position, and customer-oriented.
Scheduling. Dhaka Ice Cream Industry Ltd production control, scheduling, involves
developing timetables that specify how long each operation in the production process
takes and when it should be performed. Efficient scheduling ensures that delivery
schedules are met and productive resources are efficiently used. Scheduling is
extremely important for manufacturers of complex products with large numbers of parts
or production stages. A watch contains dozens of component parts, and each of them
must be available in the right place, at the right time, and in the right amounts if the
production process is to function smoothly.
Dispatching. The phase of production control that instructs each department on what
work is to be done and the time allowed for its completion is called
Dispatching. The dispatcher authorizes performance, provides instructions, and lists
priorities for each job.
Follow-up. Dhaka Ice Cream Industry Ltd best plans sometimes go awry, some
means must be available to keep management aware of problems as they arise.
Follow-up is the phase of production control that spots problems in the production
process and informs management of needed adjustments. Problems come in many
forms. Machinery malfunctions, delays in shipment of vital materials or in arrival of
goods or supplies, and employee absenteeism can all result in production delays.
These delays must be reported to production control so adjustments in production
schedules can be made. A delay in the delivery of a particular component may require
new assignments to be made by the dispatcher to work areas affected by this delay.
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3.9 Scheduling
Dhaka Ice Cream Industry Ltd scheduling pertains to establishing both the timing and
use of resources within an organization. Under the operations function scheduling
relates to use of equipment and facilities, the scheduling of human activities, and receipt
of materials.
Dhaka Ice Cream Industry Ltd issues relating to facility location and plant and
equipment acquisition are considered long term and aggregate planning is considered
intermediate term, operations scheduling is considered to be a short-term issue. As
such, in the decision-making hierarchy, scheduling is usually the final step in the
transformation process before the actual output (e.g., finished goods) is produced.
Consequently, scheduling decisions are made within the constraints established by
these longer-term decisions. Generally, scheduling objectives deals with tradeoffs
among conflicting goals for efficient utilization of labor and equipment, lead time,
inventory levels, and processing times.
Dhaka Ice Cream Industry Ltd are two general approaches to scheduling: forward
scheduling and backward scheduling. As long as the concepts are applied properly, the
choice of methods is not significant. In fact, if process lead times (move, queue and
setup times) add to the job lead time and process time is assumed to occur at the end
of process time, then forward scheduling and backward scheduling yield the same
result. With forward scheduling, the scheduler selects a planned order release date and
schedules all activities from this point forward in time.
Dhaka Ice Cream Industry Ltd, Scheduling is an important tool for manufacturing and
engineering, where it can have a major impact on the productivity of a process. In
manufacturing, the purpose of scheduling is to minimize the production time and costs,
by telling a production facility what to make, when, with which staff, and on which
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equipment. Production scheduling aims to maximize the efficiency of the operation and
reduce costs.
Production scheduling tools greatly outperform older manual scheduling methods.
These provide the production scheduler with powerful graphical interfaces which can be
used to visually optimize real-time workloads in various stages of production, and
pattern recognition allows the software to automatically create scheduling opportunities
which might not be apparent without this view into the data. For example, an airline
might wish to minimize the number of airport gates required for its aircraft, in order to
reduce costs, and scheduling software can allow the planners to see how this can be
done, by analyzing time tables, aircraft usage, or the flow of passengers.
The benefits of production scheduling of Dhaka Ice Cream Industry Ltd include:
Process change-over reduction
Inventory reduction, leveling
Reduced scheduling effort
Increased production efficiency
Labor load leveling
Accurate delivery date quotes
Real time information
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3.10 Maintenance
Maintenance, repair, and operations (MRO) or maintenance, repair, and
overhaul involve fixing any sort of mechanical or electrical device should it become out
of order or broken (known as repair, unscheduled or casualty maintenance).
Dhaka Ice Cream Industry Ltd also includes performing routine actions which keep the
device in working order (known as scheduled maintenance) or prevents trouble from
arising (preventive maintenance). MRO may be defined as, "All actions which have the
objective of retaining or restoring an item in or to a state in which it can perform its
required function. The actions include the combination of all technical and
corresponding administrative, managerial, and supervision actions."
Dhaka Ice Cream Industry Ltd MRO operations can be categorised by whether the
product remains the property of the customer, i.e. a service is being offered, or whether
the product is bought by the reprocessing organisation and sold to any customer
wishing to make the purchase. (Guadette, 2002)
Generally speaking, there are two types of maintenance in Dhaka Ice Cream Industry
Ltd:
Preventive maintenance , where equipment is maintained before break down
occurs. This type of maintenance has many different variations and is subject of
various researches to determine best and most efficient way to maintain equipment.
Recent studies have shown that Preventive maintenance is effective in preventing
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age related failures of the equipment. For random failure patterns which amount to
80% of the failure patterns, condition monitoring proves to be effective.
Corrective maintenance , where equipment is maintained after break down. This
maintenance is often most expensive because worn equipment can damage other
parts and cause multiple damage.
Preventive maintenance
Premier Cement Mills Ltd preventive maintenance is maintenance performed in an
attempt to avoid failures, unnecessary production loss and safety violations. As
equipment cannot be maintained at all times, some way is needed to decide when it is
proper to perform maintenance. Normally, this is done by deciding some
inspection/maintenance intervals, and sticking to this interval more or less affected by
what you find during these activities. The result of this is that most of the maintenance
performed is unnecessary; it even adds substantial wear to the equipment. Also, you
have no guarantee that the equipment will continue to work even if you are maintaining
it according to the maintenance plan.
Corrective maintenance
Premier Cement Mills Ltd corrective maintenance is probably the most commonly
used approach, but it is easy to see its limitations. When equipment fails, it often leads
to downtime in production. In most cases this is costly business. Also, if the equipment
needs to be replaced, the cost of replacing it alone can be substantial. It is also
important to consider health, safety and environment (HSE) issues related to
malfunctioning equipment.
Corrective maintenance can be defined as the maintenance which is required when an
item has failed or worn out, to bring it back to working order. Corrective maintenance is
carried out on all items where the consequences of failure or wearing out are not
significant and the cost of this maintenance is not greater than preventive maintenance.
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3.11 SWOT Analysis
SWOT analysis of Dhaka Ice Cream Industry Ltd SWOT is a technique to identify the
strength, weaknesses, threat and opportunities a company in terms of both the external
and the internal environment of a company.
Strengths:
Quality Control with high quality product
Machineries and Technology of European standards
High level of training
Good Location
Large Marketing Team
Improved management practice
Weaknesses:
Distribution set up cannot cover the whole country yet
Company cannot achieve their target market share yet
Poor structure of the HR department
Low level of marketing
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Opportunities:
Opportunity for export
Opportunity to spread marketing &distribution channel
Creation of the new web site
Great potential for growth and profitability
Threats:
Presence of competitors
Price increase in international Market
Risk of exchange rate fluctuation
Irrational duty and VAT structure
High inflation
Political Instability
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Findings & Recommendation
Findings
Lack of HR system
No high level production software
Price wars with competitors
Lower exposure of the cement industry
Competitors in the export market
Logistic Problem
Big companies becoming bigger, small companies becoming smaller
Presence of substitute product
Recommendations
While doing the project part, we worked on ten production factors with issues related to
the cement industry of Bangladesh and also Dhaka Ice Cream Industry Ltd in the
perspective of the overall in attention. We have thus discussed above some findings
which related to the cement industry. If Dhaka Ice Cream Industry Ltd wants to reach
the top three cement industry in future, they improve their quality; build strong HR
department, good layout strategy, high supply chain management and proper inventory
management.
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Concluding remarks
Ever since we started taking interests in report, we learnt that most of my seniors were
doing their report in telecom industry, financial institutions and FMGC companies.
Contrary to this prevailing trend, our decision to doing report on a cement company was
quite different. However starting our report with little or rather no knowledge about the
cement industry of the country, we really did not know what to expect from this report.
We really did not think that our experience with Dhaka Ice Cream Industry Ltd would
be so interesting and enriching.
Dhaka Ice Cream Industries limited is in a rising position and would do good businesses
in the future. They have almost reached to rivals competitors like Igloo, Savoy and
Kwality. The organization must know that the role of Operation Management is
changing as fast as technology and the global marketplace. DIIL must be aware that
those times have changed. The positive result of these changes is that production
professionals have the opportunity to play a more strategic role in the business. The
challenge for Head of HR or HR managers is to keep up to date with the latest
production innovations - technological, legal, and otherwise.
Any company could develop strong management system in different ways. But in our
opinion, following the above theories DIIL could develop best Production and Operation
management system and as a result lead to a strong production professionals as well
as producing sustainable competitive advantage.
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