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Operations Method of RFL Plastic Limited

ABSTRACT
Operations management (OM) is the business function that plans, organizes, coordinates, and controls the resources needed to produce a companys goods and services. Operations management is a management function. It involves managing people, equipment, technology, information, and many other resources. Operations management is the central core function of every company. This is true whether the company is large or small, provides a physical good or a service, and is for profit or not for profit. Every company has an operations management function. The report is on Operations Method of RFL Plastic Limited. So our report was conducted on the Order and Operations Processing System of RFL Plastic Product in Bangladesh. RFL Plastic is a well-reputed manufacturer of plastic packages and products of different sizes, colors and thickness. The objective of this report is to asses the existing Ordering process, Companys Bill of Material (BOM), Master Production Schedule (MPS) and Material requirements planning (MRP) to find out better alternatives for the company, so that it can satisfy more customers in future. The data collected for this report are both primary (Personal interview) and secondary (Company Website). Past records of the company as well as new information also analyzed to make this report. In case of a Plastic Product manufacturer company there are different stages to complete the whole order processing system. Basically the whole operation can be briefly described, which have five different steps, such as Designing, Mixing, Boiling, Printing and Packing.

Operations Method of RFL Plastic Limited

1. Introduction
1.1 Origin of the Report:
Our instructor, Prof. Muhammad Mahboob Ali, Ph.D., assigned us a report, which is a partial requirement of fulfills the course MBA-512 Operations Management The report is on Operations Method of RFL Plastic Limited. Thus, our report was conducted on Order Processing System Method of RFL Plastic Ltd.

1.2 Purpose of the Report:


The purpose of this report is to asses the existing order, the Company's Bill of materials (BOM), Master Production Schedule (MPS), and to find better alternatives for the company, so that it can satisfy more customers in the future.

1.3 Scope of the Report:


The report contains a brief discussion of the various activities of the company and its distribution process, their existing production process. In connection with certain restrictions, here in this report, only the order processing system and its activities is discussed.

1.4 Methodology:
The Data collected for this report, both primary and secondary. Past records of the company were analyzed as well as direct interviews were conducted to collect more information.

1.5 Limitations:
Time and Distance constraints were the main encumbrances for this report. It was not possible for us to cover all production segments of the company as the time was short. There were also problems of collecting the primary data from the source. For above mentioned reasons we had to come up with some arbitrary data.

Operations Method of RFL Plastic Limited

2. Organization Overview: 2.1 Background of the company:


RFL Plastics, a subsidiary of RFL Industries is the largest manufacturer of indoor and outdoor plastic products for domestic and export markets. Our 600,000 square feet (55,700 square meters) modern plastic manufacturing facility is located 30 miles (50 km) East of Dhaka (capital of Bangladesh) and went into production in 2003. The factory is fully equipped with state of the art injection molding, vacuum forming and blow molding machines with a conversion capacity of over 3,300 tons (3,000 MT) of resin per month. RFL currently utilizes 500 production molds and an in-house mold repair shop. RFL Plastic Limited has 3,000 member strong customers centric organization dedicated to supplying standard or customized plastic products globally. RFL Plastic can take pride in their work and strive to exceed customer expectation with their quality and responsiveness. They always welcome the opportunity to become customers manufacturing partner of choice. RFL Plastics Limited commenced its operation in 2003. The vision of the company is to make molded household products and furniture made of plastics of decorative design at an affordable price. The company's product ranges include household items like table ware, kitchen ware, cleaning accessories, storage containers, multipurpose ware, baby ware, hangers and furniture items like Arm Chair, Armless Chair, Table, Stool etc. Due to its perceived superior quality, innovative design and varying ranges, RFL has already been established as most preferred brand in plastic category in Bangladesh. With the expansion of its product line and capacity, the RFL products are now being exported in various countries around the globe. Through vigorous selection and evaluation process, best quality food grade plastics are used as raw materials for manufacturing. The factory is located at Ghorashal, Narshingdhi and is equipped with 70 plus injection molding machine. Around 3000 workers under the supervision of more than 100 technical experts put their effort to give the shape of the consumer demands. Each process line of manufacturing goes through stringent quality control process and checked against slightest of non conformance. The company has its own R&D laboratory which explores

Operations Method of RFL Plastic Limited

about product and design innovations that can meet both expressed and unexpressed consumer demand.

2.2 Products:
The industry is well equipped with China, Taiwanese and Thai Technology to produce high quality flexible plastic products such as Hanger & Garments Accessories (Moving Shirt Hanger, wall Hanger), Food Storage Products (Food Storage Box), Household Utilities (Mug, Super Bucket), Washroom Accessories (Square Soap Case), Beverage Products (Glass Stand, Design Glass), Utility & Cleaning Products (Laundry Basket), Furniture (Arm Chair, Table, Stool) etc. Covering the wide range of packaging, pouches, tubes, garment and films of HDPE (High Density Polyethylene), LDPE (Low Density Polyethylene), PP (Polypropylene), LLDPE (Linear Low Density Polyethylene) and their mixes based packing materials round the clock and satisfies almost all sort of the industry. It can produce up to 8 (Eight) colors and deliver its products within a very short span of time with a total installed production capacity of 3,000 MT per annum. The capacity utilization of the industry is over 95%.The industry has the started with an installed capacity to produce 3,300 tons of plastic flexible of different sizes, colors and thickness and now increasing their capacity to meet the growing demand.

Operations Method of RFL Plastic Limited

Picture-2.2.1: Different types of RFL Plastic Products


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Operations Method of RFL Plastic Limited

2.3 Polly balls Category:


HDPE is defined by a density of greater or equal to 0.941 g/cm3. HDPE has a low degree of branching and thus stronger intermolecular forces and tensile strength. HDPE is used in products and packaging such as milk jugs, detergent bottles, margarine tubs, garbage containers and water pipes. One third of all toys are manufactured from HDPE LDPE is defined by a density range of 0.9100.940 g/cm3. LDPE has a high degree of short and long chain branching. LDPE is used for both rigid containers and plastic film applications such as plastic bags and film wrap. LLDPE is defined by a density range of 0.9150.925 g/cm3. LLDPE is a substantially linear polymer with significant numbers of short branches. It has Lower thickness compared to LDPE. Agricultural films, saran wrap, and bubble wrap, to multilayer and composite films.

Operations Method of RFL Plastic Limited

HDPE (High Density Polyethylene) balls

LDPE (Low Density Polyethylene) balls

PP (Polypropylene) balls

LLDPE (Linear Low Density Polyethylene) balls

Picture -2.3.1: Different types of Polly balls


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Operations Method of RFL Plastic Limited

2.4 Style & Design:


RFL Plastic Ltd. is expert in making different dices for different items. The company gets those designs from its buyers, suppliers according to their specifications and they have strong R&D laboratory, which explores about product and design innovations to meet peoples demand. They have 70 plus injection molding machine to produce those product. These includes such as Arm Chair, Armless Chair, Table, Stool and so on.

2.5 Machines:
RFL Plastic limited use art injection molding, vacuum forming and blow molding machines for their Production.

2.6 Operations of Order Processing System:


In the case of plastic manufacturer company, there are various stages to complete the entire order processing system. In general, the entire operation can be summarized that there are five distinct steps, such as design, mixing, boiling, packing and packaging. The organization hired an expert to create a dice design on the customers choice. Then varying density polyethylene based balls and colors are mixed together and ready for boiling. After completion of the boil, print jobs are run as a sample design allows clients. After printing, packaging materials workers are ready for shipment.

Designing

Mixing

Boiling

Printing

Packing

Figure: 2.6.1 Order Processing System of RFL Plastic Limited


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Operations Method of RFL Plastic Limited

2.7 Bill of Materials


A Bill of Material (BOM) is a hierarchical structure of components required to make the finished good. A BOM is basically a Product structure. RFL Plastic Product is usually made of mixed materials and the sample dices. Mixed material means the quantity of Polyethylene balls, colors, and other raw materials. The sample dice are designed by the expert people with high technology machines which needed power supply.

The Bill of Material of RFL Plastic Limited is given bellow:

RFL Plastic Product

Level 0

Mixing Material

Sample Dice

Level 1

Polyethylene Balls

Colors

Raw Materials

Work Force

Machine

Power Supply

Level 2

2.8 Master Production Schedule (MPS) on the basis of production capability of RFL Plastic Limited
RFL Plastic Limited follows the Master Production Scheduling (MPS), which prepares weekly production plan for individual models/types of items. It is a plan for end items, or finished goods. An MPS may be prepared for a period of three months to one year, depending upon stability of demand. RFL Plastic Limited. RFL can produce at best 90,000 different plastic products in a week. But they produce 10,000 less than they can produce in a week. Here gives some few categories of plastic product company delivered in every week to their customer.

Operations Method of RFL Plastic Limited

1st Month Scheduling


Model /Type
1 Outdoor Furniture Hangers & Garments Accessories Beverage Products Shelving Product (Different types of rack) Food Preparation Accessories Kids Corner Total Quantity 80,000 30,000 12,000 80,000 80,000 35,000 18,000 30,000 12,000 80,000 15,000 50,000 35,000 18,000 2

Weeks
3 15,000 50,000 4

2.9 Uses of MRP Method


To fulfill the market demands the company uses MRP. In accordance with MRP, in the first action of the company is to forecast, production plan and taking orders for the product. Product forecasts are needed for each company to plan the future budget for the product, then the production plan and takes orders from customers. All three of these things combined made the master schedule of the company; the company has to look at their MRP so that they prepare a master production schedule to meet demand. Before making the companies order the release to check the status of inventory to know about their current position in the in the inventory. After make the order the Company has to verify CRP (capacity planning requirements). If the resource is available, the company makes a purchase order, and work orders. When the material reaches the company, they store some of the raw materials and other parts directly load and scheduling production to produce the final product.
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Operations Method of RFL Plastic Limited

Product Forecasts

Production Plan

Customer Orders

Master Schedule

Inventory Status Records

Material Requirements Planning (MRP)

Planned Order release

Released Work Orders

Capacity Requirements Planning

Work Orders Purchase Orders

Storage

Loading & Scheduling

Manufacturing

Products

To Customer

Figure-2.9.1: The MRP Process of RFL Plastic Limited.


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Operations Method of RFL Plastic Limited

3.0 Conclusion:
Operations management (OM) is the business function that plans, organizes, coordinates, and controls the resources needed to produce a companys goods and services. Operations management control function. It includes managing people, equipment, technologies, information, and many other resources. Operations management is a central function of the core of each company. This is true whether the company large or small, provides the physical goods or services for profit or not for profit. This practical knowledge will help us in applying our personal and professional life. While this report, we have accumulated enough insight strategy, which deals mainly with the activities of management, such as people, machines and processes in order to fulfill the company, both short and long term goals.

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Operations Method of RFL Plastic Limited

4.0 Reference(s)
1. Stevenson, William J. (2005). Operations Management (8ed), published by Tata McGraw-Hill Publishing Company Limited. 2. http://www.rflplastics.com/index.htm

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