For office use:

Grade

Communication For Managers

Case Assignment No. 1\2

Case Analysis Report on
Pramanik Containers And The Bottleneck Challenge (A)

Submitted By:
Name: Shailendra Garg
Roll No: 161349
Section: C
Batch: MBA-FT (2016-2018)

Institute of Management, Nirma University

Date of Submission: 23rdAugust 2016

Executive Summary
Pramanik Containers is an aerosol manufacturing company owned by Bansilal , whose son,
Piyush, joined his league and is concerned about the inefficient printing operations and irregular
structure of the company. He is keen to implement new ideas in the company for its quality
improvement and resolution of the problems. The possible choices are to install Computerized
Systems for maintaining records or to implement expensive ERP system. But the best solution
under the short term condition is to implement Computer Systems for maintaining records and a
formal structure in the organization. ERP system is convenient for long term benefits.
Total word count is 99

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Situation Analysis
Pramanik Containers Pvt. Ltd. is an aerosol manufacturing company started by Bansilal in 1977 as
a part of family business. It is now a well established company and has annual sales turnover of 315
million in 2009. It mainly dealt in B2B selling and was a leading vendor of a large MNC 'ABC
Pharma'. The manufacturing process of aerosols is a high speed , high volume process and is
divided into two main stages; making customized aerosol cans and decorating these cans. Pramanik
has produced large variety of products by modifying itself with time for different product segments.
Aerosols are mostly used by cosmetics and pharma companies but due to unexpected changes in
the market these companies outsourced the small vendors like Pramanik.
The only son of Bansilal Mehta, Piyush Mehta is very enthusiastic to work with his father after
completing his MBA. But on the very first day of joining the company

he has some bad

experience. He found out that although their customers are satisfied they need to improve in many
areas of the company like inventory management, record keeping and efficiency & discipline of
employees. He observed that the company can make significant progress if these areas are targeted
and improved. Also, he found out that they had fabrication capacity of 48,000 units per 8-hour shift
and printing capacity of 1,44,000 units per 8-hour shift and this much capacity is equivalent to one
day's ( 3 shift's ) fabrication capacity. But with this much high manufacturing capacity, they are still
producing 30,000 designed plates only. Also, the company got nearly 60 orders every day and 80%
of these orders are placed by only regular clients i.e. they are lacking in attracting new customers.
There is also mismanagement in the company which leads to wastage of space, time and money.
Recently printing plate was not found and they have to made new duplicate plates costing Rs. 7000
each plate. So no proper management of plates by irresponsible employees.
On the other hand, although Bansilal was aware of all these situations and problems in the plant, he
was not taking any serious action. Piyush tried to discuss these problems with his father, but he did
not listen. Bansilal due to his traditional thinking, believed in conventional way of doing business.
Also, because of his behaviour of saving taxes, he has not shown profits since 1980. He was also
extremely over dependant on his employees, specially Shankar the head printer. As Shankar was an
old employee and his quality of work in Printing was good, Bansilal decided not to replace him.
Also Bansilal did not considers Piyush's new and improved ideas of doing business, but he
permitted Piyush to fix the situation without any cost.
Under Piyush the company is planning to fix the situation by buying new land for the storage of
plates and hiring new employees and for the long term solution, they are considering ERP system.
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Problem statement
The lack of proper structure and inefficient management of printing plates.
.

Objectives
1. To install a proper record keeping method in the company.
2. To increase the efficiency of the employees.
3. To improve and maintain quality in the company.
4. To implement the changes without any financial cost.
5. To attract new customers in the company.

Options
1. To implement the use of Excel sheets for recording purposes in place of registers.
2. To hire new skilled employees as good as Shankars.
3. To buy more land for storage of plates.
4. To separate the plates of regular and new customers.
5. To purchase the ERP system.

Evaluation of Options
Option 1: Installation of Computer Systems for the use of Excel sheets for the recording
purposes.

Pros: 1. It will help in boosting the operational performance as orders can be taken and accessed
in time.
2. Maintenance of records would be an easy job after installation of computer systems and will be
highly beneficial in the future as records would be easy to find.
3. It will also help in estimating the performance of the employees and bringing the formal
structure.
4. It is easy to invest as installation of computer systems is not a very big investment.
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Cons: People like Shankar who are not aware of new technology would cause problems and
skilled labour is required which will further increase the cost of installation.

Option 2: To hire new skilled employees as good as Shankars in the company.

Pros: It will reduce the dependency on Shankar, which will increase the efficiency of operation.
Cons: No change in the accountability of the company will be seen.

Option 3: To buy new land Area.

Pros: 1. More land means more space for handling inventories and storage of plates.
2. It will also help in handling future orders and improves customer service and value.

Cons: It will be a big investment for the company.

Option 4: To separate the plates of regular and new customers.

Pros: As 80% orders are from regular customers, separating the plates will make it easier to
handle customers.

Cons: This separation will take a lot of time. Also out of every 60 orders a day, 30 require new
plate designs.

Option 5: To purchase the ERP system

Pros: 1. It will increase the capacity to handle future orders.
2. Large inventory is not required after its installation.

Cons: Its cost of implementation is very high. Maybe company is not able to afford it now.
Refer Exhibit 2.

Decision
Short term Decision: Implementation of Computer systems to improve the record maintenance
and introduction of a formal structure which can be in form of an hierarchy.

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Long Term Decision: Purchasing the ERP system is the only solution for long term but it will cost
a lot so company should start saving funds for that.

Action Plan
1. Training the employees to use the Excel sheet for records purposes.
2. Implementing proper organizational structure in the company.

Contingency Plan
Purchasing and implementing the ERP system.
Total word count is 1000

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Exhibits
Report Exhibit 1:
Fabrication Capacity = No. of cans made per minute*60(for one hour) *No. of hours in a
shift*No. of shifts*No. of Machines = 25*60*8*3*4 = 144000
Printing Capacity = No. of cans printed per minute*60(for one hour) *No. of hours in a shift*No.
of shifts = 300*60*8*3 = 432000
So, it shows our printing capacity is thrice of our fabrication capacity. So it can complete a days
work in 1 shift.

Report Exhibit 2:

Use Excel
sheets for
recording
purposes.

Add new
person
with skills
as equal to
Shankar.

To correct book
keeping methods
of the company

YES

NO

NO

NO

YES

To increase
efficiency of the
employees

YES

MAY BE

NO

YES

YES

To improve and
maintain quality in
the company

YES

YES

YES

YES

YES

To implement the
changes
without
any financial cost.

MAY BE

YES

NO

MAY BE

NO

To attract new
customers in the
company.

YES

NO

MAY BE

YES

YES

Options
Objectives

Separate
plates of
Buy new
regular &
land area.
new
customers.

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Buy ERP
system.

UNDERTAKING

To Whom It May Concern:

I, Shailendra Garg hereby declare that this assignment is my original work and is not copied from
anyone/ anywhere. If found similar to any other sources, I shall take complete responsibility of the
actions, taken thereof by, CFM Team.

Signature : .
Name

: Shailendra Garg

Roll No

: 161349

Section

: C

Batch

: MBA-FT (2016-2018)

Date

: 23rd August 2016

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