CHAPTER 1: INTRODUCTION

1.1.INTRODUCTION OF WALTON GROUP

Walton group of industries is the leading group of Bangladesh founded in 1977, by S.M
Nurul Alam Rezvi, as a trading company. After its introduction to now on, numerous
subsidiaries and alliances enriched the group and as a consequence, they went international.
Now Walton group has businesses over worldwide with about 15,000 employees. Their
successful step making is just got spicy flavor with a set of new future plans.

Now, lets have a look at the Walton Group at a glance.

Table 1.1.: Walton Group at a glance.

Walton Group (A sister concern of R.B Group of Companies LTD.)

1.Headquarter 1.Walton Hi-Tech Industries LTD.

Chandra, Palikir, Jaipur

2.Company type Trading and Manufacturing company.

3.Company`s Receiving an economic return on its investment and contribute to

Objective the economic development of a technologically sensitive country
like Bangladesh.

4.Owner Bangladesh is the only owner of the company.

5.Certificates ISO 9001:2008 standard certified.

6.Factories Walton Hi-Tech Ind. Ltd (2,160,000 square feet).; Walton Micro
Tech. Corporation & Walton Corporation Ltd.
(Chandra, Kaliakoir, Gazipur.)

7.The official business 1978

started in.
9.A present number of 120 and rising.
customer care services

10.The Present number Over ten thousand worldwide.

of employees

11.Target customers Middle-income group.

12.Industries involved Electronics, steel, textile & automobiles.

13.Main Market Europe, Africa, Oceania, Mid East, Eastern Asia.

14.Export percentage 91 to 100%

15.The number of Over 10.

production lines

16.Most important Electronics &

source of income
Automobiles

17.Market share 35% market share in the appliances industry.

18.Business type Cash and hire system.

19.Business Peoples Republic of china &

collaboration with
Peoples Republic of Korea.

20.Near future plans a. Build an automobile and motherboard factory in Bangladesh.

b. Laptop & IC production.

c. Semiconductor production from country made raw materials.

 Various products of WALTON group

Fig 1.1. Electronics and automobiles aided by steel and textile related products

Walton Group`s main products are electronics and automobiles. The steel and textile related
products basically assist/aid in the major product`s designing. It has warehouses in other
countries like china etc.

Mission

Based on Walton`s primary structure, it will be the pioneer and strong leader in
the electronics and automobile industry in Bangladesh and worldwide. They can achieve it by-

a. Ensuring quality products to their customers.

b. Ensuring quality services.

c. Enhancing the customer analysis program and giving them proper service by mixing
the management, marketing or other department related decisions for the customer
satisfaction and long-term customer relationship

d. Elevating the service of customer cares.

e. Implementing an environment that reward team spirit, enthusiasm, innovation, and

friendship.

f. Allocating resource in such a way that will ensure maximum efficiency for Walton.
Vision

Walton vision is `It`s Our Product` or `Amader Ponno`. From a reliable source,
we collect the elaboration or description of their vision according to which the employee
activities aligned. The elaboration is given below.

`Highest priority to customers satisfaction providing latest technology-

based world-class electrical, electronics and automobile products with innovative designs,
attractive models, and excellent quality`

(collected)

For this good, clear, memorable and concise mission and vision statement in
future Walton group can have access to some great opportunities. Like.

Attracting & hiring new talents.

Increasing the productivity of company while using all of their resources to implement
their strategic plans successfully and efficiently.

Going one step ahead for being the leading appliances manufacturer in Bangladesh &
worldwide.

And of course, this well-stated mission and vision statement will help them to build or
enhance the organizational culture.

Strategic content

Walton group`s strategic intent is to be the global leader in appliances

industry. This is not impossible for near future. Some ADB visitor`s said, some years ago while
visiting Walton`s factories, that Walton will be big like Samsung Electronics one day if they
can continue with their present production and satisfaction rate.

1 Corporate strategies: Exceeding customer expectation can give them more profit.

2 Mixing innovative product features to new market environments & areas and acquire
substantial market share.
3 Promote good corporate image and enhance the distribution channel.

1.2. OBJECTIVE OF REPORT

The primary objective of the report is the completion of our course FNB301
To review the distinctive concepts of operations management activities
To gather knowledge about the implication of operations management activities of
WALTON group
To evaluate the current operational management activities and performances of
WALTON group.

1.3. LIMITATIONS OF REPORT

Though we tried I best to make a perfect report, a few limitations held me back. The main
limitations that I faced, were
a. When we went to collect information from the Walton product manufacturing area, they
were not fully able to cooperate with us, as we required information was confidential.
b. There was not enough data in the websites

1.4. METHODOLOGY

The methodologies used in the research process for this report, are:

Data collection

Primary data is the information that we collect first-hand and secondary data is the information
collected by others and used by us. For data collection, we used three approaches:

a. First, we conducted some field research. We went to WALTONs factory and asked
workers about manufacturing process.
b. We searched about Walton on the Internet and found some important information
regarding their company background, product lines, promotional programs and so on.

c. We went to an Auditor of Walton, named Salman Musfique, and asked for some
information.
 CHAPTER 2: ORGANIZATIONAL OVERVIEW

Walton is the latest multinational electrical, electronics, automobiles and other appliances
brand with one of the largest well-equipped R & D facilities in the world carried out its
production through different subsidiaries under the banner of Walton group headquarters in
Bangladesh. Walton had entered into electronics business in 1994 with manufacturing of
electrical and electronic items and gradually expanded its operation in many other electronics
field that provide the foundation for nearly every aspect of modern life. The key secret behind
the success of Walton lays its variation of production capacity and customized orientation of
new product as per the demand of customer. World class machineries like Thermoforming,
Channel Extrusion, ABS/HIPS Sheet Extrusion, Magnetic Strip Extrusion, PP Hollow Sheet
Extrusion, VMC, 5 axis VMC, Ultrasonic Welding, Injection Molding, Styrofoam Making, Hi
Speed Power Press, Fin Press, Corrugation, SMT pick and place, SPG printing machine, AOI
machine, Tamura wave solder machine, Auto insertion machine are being used for the
production of high quality products of Walton. Along the way, Walton has earned domestic
and global recognition for its experience and proven track record in a variety of electronics
fields. Walton is the pioneer of developing state of the art designs and modern technology
having leading market share specializing in Multi-Stored Refrigerators, Freezers, Air
Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones and Home Appliances.
WALTON has established a milestone as the highest exporting Bangladeshi enterprise in the
field of electronics, with a universal presence in over 20 countries and by 2020 the presence of
Walton will be ensured almost every country in the world.

Walton's Innovation is dedicated to building a more advanced society through the fusion of
sophisticated technologies having the capacity of 3.00 million refrigerator, 0.30 million Air
conditioners, 0.15 million Motorcycle and 1.5 million Television per annum respectively. The
entire Walton Group having more than 21,000 direct & indirect employees are working
together to overcome the challenges to go top most market and meet customer demands
throughout the world by implementing its unique Social Innovation globally. The retail organs
of Walton run through more than 4000 plazas, exclusive distributors and dealers. Walton has
more than 57 moderns and well equipped after sales service points along with ISO certified
central service point. It enables to address the issues customer face from a common point of
view to develop solutions that combine the required products. Walton has achieved many
international & national awards and recognitions like some recent prestigious and best business
awards are: The Golden Globe Tiger Award 2015 in the category of Excellence & Leadership
Brand, DHL-Daily Start Bangladesh 15th Business Award 2014 for Best Enterprise in
Bangladesh, Asia Best Employer Brand Awards in 2015, Six times 1st Prize for Highest VAT
Payer at DITF-2015, 2014, 2013, 2012, 2011 & 2010 respectively, Second Prize for Premier
Pavilion Category at DITF-2015, Best Refrigerator Brand Award-2014, Best Television Brand
Award-2014, Best Local Brand Award-2014, 1st Prize for Premier Pavilion Category at DITF-
2014, The Global Brand excellence Award in 2014 for brand excellence in consumer
electronics, 1st Prize for Premier Pavilion Category at DITF-2013, Best Sponsor Award-2012,
Creative Media Ltd. BABISAS Award-2012, Best Brand (Refrigerator) Award-2011, 2nd
Prize for Premier Pavilion Category at DITF-2011, 2nd Prize for Premier Pavilion Category at
DITF-2010, 1st Prize for Premier Pavilion Category at DITF-2009, 1st Prize for Premier
Pavilion Category at CITF-2005. Walton has been maintaining 100% compliances since its
inception and certified ISO 14001:2004 Refrigerators & Air Conditioner Division, ISO
9001:2008 Refrigerators & Air Conditioner Division and OHSAS 18001:2007 Certificate for
successfully adopting sound occupational health and safety management systems, efficient
staff management, minimizing the risk of accidents and achieving adequate corporate
reputation ensuring the standard of products and combining the above to minimize the
production cost. Their strategic philanthropy and corporate social responsibility (CSR) efforts
are aligned to our key businesses and focus mainly on sports and culture, technology and the
environment with a particular emphasis on innovation in each of those areas. As a global leader
in the consumer electronics industries, Walton is fully committed to responsible corporate
citizenship and environmental stewardship through its products, its programs, its practices and
its people.
 CHAPTER 3: OPERATIONS MANAGEMENT
ACTIVITIES

Operations management is defined as the design, operation and improvement of the systems
that create and deliver the firms primary product and services.

This department`s job is to prepare accounts

Accounts report and financial report.
Department Central accouting process and making sure
that nothing goes wrong.

Monitoring and collevting various credit data

Credit of field officers.(Field officers are one of the
Deparment major characteristics of WALTON.
Supervising area manager`s data & evaluate
then.

Working for the proper integration of

Marketing 4p( product,price,place,promotion)
Department

In Walton both weekly and monthly

Audit reports are submitted by this
Department department.

Major task is managing the inventory

Inventory and also record the total sales and
Department purchases, weekly and monthly.

Logistic This department specialize in product

distribution and also im managing the store
Deparment in bangladesh and worldwide.

Recruitement/derecruitement; monitoring
Administration employees ; regulating repots etc.
Department
Fig 3.1. Various departments under operational management activities
Importance of production and operations management

Automated Inventory control

Constant customer feedback
Customized product
Personal service

Scope of production and operations management of WALTON

Strategic (long-term) decision-How, where, how much, when etc. Tactical (Intermediate)
decision-

In Walton, there are 15000+ workers

There are two shifts for workers
They deliver normally from 8am to 8pm.During Eid they delivers for 24 hours
No Warehouse
No provident or gratuity fund. But there are Workers Profit Participation Fund.
Priority of work selection is profits are divided into workers equally.

3.1. MANUFACTURING PROCESS OF WALTON

Refrigerators and freezers:

Walton manufactures world-class refrigerators and freezers at its modern and fully
automatic plant, which is one of the biggest in South Asia. Refrigerators and freezers are
manufactured using latest technology and high-quality compressors. The technology
ensures longer cooling system, low energy consumption and exact moisture for maintaining
food value. Condenser is made of 100 per cent copper in accordance with international
standard. Walton refrigerators offer different models with eye-catching designs and colors.
Spare parts including doors are changeable and available everywhere in the country.
Walton has recently launched world-class refrigerators and freezers using the
nanotechnology to keep food fresh and intact for a longer period of time. All the Walton
 models of refrigerators are manufactured using the silver Nano particles which helps keep
food free from many harmful bacteria and unpleasant odors. Some 600,000 units of
refrigerators and freezers are being manufactured at Waltons factory annually. Besides, its
new production line is going to produce 800,000 units of refrigerators and freezers soon.
Walton has recently planned to manufacture world-class non-frost and luxurious
refrigerators, keeping the taste and demand of customers of developed countries in mind.
Walton brand of refrigerators and freezers hold 70-75 per cent market share of refrigerators
and freezers in Bangladesh. At present, Walton has the capacity of manufacturing 1.4
million refrigerators and freezers annually.

Outer cabinet and door

Pieces of sheet metal are either welded or clinched together. Clinching is a process
closely resembling stapling in that the two pieces are crimped together under pressure,
though no additional pieces such as staples are added. If the part of the cabinet is to be
visible, it will be welded and ground down to appear as one piece. The extent to which
the welding process is automated depends on the company and the number of
refrigerators being produced.
If the sheet metal was not purchased in percolated form, it is now painted. Some
manufacturers use spray equipment to lay a uniform coat of paint on the metal. Others
dip the parts in a paint/solvent mixture before heating them to bake the paint onto the
surface.

Inner cabinet

The inner cabinet is sometimes made from sheet metal very similar to the outer shell.
Any seams are caulked to improve insulation and looks. WALTON sometimes use
plastic for inner liners. The plastic liners are vacuum formed. In this process, a thick
piece of plastic slightly larger than the finished part has its outer edges clamped and is
then heated. The hot plastic is next pulled by vacuum into a mold and cooled. After
trimming, the resulting part is ready for assembly.
The inner cabinet is inserted into the outer cabinet, and the two are snapped together
before the fixtures are inserted. Some tubes and wires are run through the gap between
 the two before it is filled with insulation. A dispensing device (sometimes robotically
operated, sometimes a manually operated long 'gun') inserts foam between the walls.
When heated in an oven, this foam expands to add rigidity and insulation to the cabinet.
A similar process is used for the doors.

Fig 3.1.1. Freezer manufacturing process

Cooling system

The refrigeration components are attached to the cabinet using screws and clips. The
tubing is soldered together, and a protective coating is sprayed on the joints. The order
of this assembly varies between manufacturers and models. The copper tubing from
which the coils (condensers and evaporators) have separately been cut, bent, and
soldered is then attached to the refrigerator as a unit.
 The seal on the refrigerator door is created by means of magnet laden gaskets that are
attached to the doors with screws. Handles and hinges are also screwed onto the door
before its hinges are screwed onto the cabinet. Some adjustment is allowed for proper
operation of the door.

Testing and adding accessories

Most manufacturers mix testing with manufacturing from this point on. The unit is leak
tested with nitrogen (a safe gas that makes up about 79 percent of the air); if it passes,
it is charged with refrigerant and subjected to further testing. Next, the accessories
(shelves, crispers, ice trays, etc.) are added and taped down for shipping. The unit is
given a final look and then packaged for shipping.

Quality Control

As mentioned above, all subassemblies of tubing that will contain refrigerant are pressure-
tested with nitrogen, which will reveal any flaws in the tubing and in the soldering, that joins
it. The entire unit is also leak-tested prior to charging with Freon. Once charged, the unit is
tested as a whole to ensure that it is capable of reaching design temperatures including those
necessary during the defrost cycle. The unit is operated with sensors inside that determine the
temperature changes over time. Sometimes the refrigerant pressures are also measured. The
unit is then subjected to a final 'sniff test by a machine that detects refrigerant to ensure that no
leaks have developed during testing.

Motorcycles:

Walton manufactures different models of motorbikes at its state-of-the art plant.

Walton motorcycles are powered by five different capacity engines--140cc, 125cc,
110cc and 100cc. They offer high-quality performances and different mileages. The
first one is Xplore which is available with 140cc and 125cc capacity engine; the second
model is Fusion, which is available with 125cc and 110cc engines, while the third one
is Prizm with 110cc capacity engine and the fourth model is Cruise which is available
 with 100cc capacity engine. All these motorcycles have single cylinder, air-cooling
system and 4-stroke engines.

1. Raw materials as well as parts and components arrive at the manufacturing plant by
truck or rail, typically on a daily basis. As part of the just-in-time delivery system on
which many plants are scheduled, the materials and parts are delivered at the place
where they are used or installed.
2. Manufacturing begins in the weld department with computer-controlled fabrication of
the frame from high strength frame materials. Components are formed out of tubular
metal and/or hollow metal shells fashioned from sheet metal. The various sections are
welded together. This process involves manual, automatic, and robotic equipment.
3. In the plastics department, small plastic resin pellets are melted and injected into molds
under high pressure to form various plastic body trim parts. This process is known as
injection molding.
 Fig 3.1.2. Motorcycle manufacturing process

4. Plastic and metal parts and components are painted in booths in the paint department
using a process known as powder-coating (this is the same process by which
automobiles are painted). A powder-coating apparatus works like a large spray-painter,
dispersing paint through a pressurized system evenly across the metal frame.
5. Painted parts are sent via overhead conveyors or tow motor (similar to a ski lift tow
rope) to the assembly department where they are installed on the frame of the
motorcycle.
 6. The engine is mounted in the painted frame, and various other components are fitted as
the motorcycle is sent down the assembly line.
7. Wheels, brakes, wiring cables, foot pegs, exhaust pipes, seats, saddlebags, lights,
radios, and hundreds of other parts are installed on the motorcycle frame. A Honda
Gold Wing motorcycle, for example, needs almost as many parts to complete it as a
Honda Civic automobile.

Quality Control

At the end of the assembly line, quality control inspectors undertake a visual inspection of the
motorcycle's painted finish and fit of parts. The quality control inspectors also feel the
motorcycles with gloved hands to detect any bumps or defects in the finish. Each motorcycle
is tested on a dynamometer. Inspectors accelerate the motorcycle from 0-60 mph. During the
acceleration, the "dyno" tests for acceleration and braking, shifting, wheel alignment, headlight
and taillight alignment and function, horn function, and exhaust emissions. The finished
product must meet international standards for performance and safety. After the dyno test, a
final inspection is made of the completed motorcycle.

Air-conditioners:

Walton manufactures world-class air-conditioners, ranging between 1, 1 and 2 tons.

At present, Walton is manufacturing split-type air-conditioners. Soon it will start
manufacturing window-type air-conditioners. Walton brand of air-conditioners are
manufactured in combination with high-quality raw materials and latest technology.
Walton air-conditioners, which are available in different models and colors, contain
LED display and 100 per cent copper condenser. It gives assurance of optimum
performances. Quality control is strictly maintained at every phase of production.
Creating encasement parts from galvanized sheet metal and structural steel

Most air conditioners start out as raw material, in the form of structural steel shapes and
sheet steel. As the sheet metal is processed into fabrication cells or work cells, it is cut,
formed, punched, drilled, sheared, and/or bent into a useful shape or form. The
encasements or wrappers, the metal that envelopes most outdoor residential units, is
made of galvanized sheet metal that uses a zinc coating to provide protection against
corrosion. Galvanized sheet metal is also used to form the bottom pan, face plates, and
various support brackets throughout an air conditioner. This sheet metal is sheared on
a shear press in a fabrication cell soon after arriving from storage or inventory.
Structural steel shapes are cut and mitered on a band saw to form useful brackets and
supports.

Punch pressing the sheet metal forms

From the shear press, the sheet metal is loaded on a CNC (Computer Numerical
Control) punch press. The punch press has the option of receiving its computer program
from a drafting CAD/CAM (Computer Aided Drafting/Computer Aided
Manufacturing) program or from an independently written CNC program. The
CAD/CAM program will transform a drafted or modeled part on the computer into a
file that can be read by the punch press, telling it where to punch holes in the sheet
metal. Dies and other punching instruments are stored in the machine and mechanically
brought to the punching arm, where it can be used to drive through the sheet. The NC
(Numerically Controlled) press brakes bend the sheet into its final form, using a
computer file to program itself. Different bending dies are used for different shapes and
configurations and may be changed for each component.
Some brackets, fins, and sheet components are outsourced to other facilities or
companies to produce large quantities. They are brought to the assembly plant only
when needed for assembly. Many of the brackets are produced on a hydraulic or
mechanical press, where brackets of different shapes and configurations can be
produced from a coiled sheet and unrolled continuously into the machine. High volumes
of parts can be produced because the press can often produce a complex shape with one
hit.
Cleaning the parts

All parts must be completely clean and free of dirt, oil, grease, and lubricants before
they are powder coated. Various cleaning methods are used to accomplish this
necessary task. Large solution tanks filled with a cleaning solvent agitate and knock off
the oil when parts are submersed. Spray wash systems use pressurized cleaning
solutions to knock off dirt and grease. Vapor degreasing, suspending the parts above a
harsh cleansing vapor, uses an acid solution and will leave the parts free of petroleum
products. Most outsourced parts that arrive from a vendor have already been degreased
and cleaned. For additional corrosion protection, many parts will be primed in a
phosphate primer bath before entering a drying oven to prepare them for the application
of the powder coating.

Powder coating

Before brackets, pans, and wrappers are assembled together, they are fed through a
powder coating operation. The powder coating system sprays a paint-like dry powder
onto the parts as they are fed through a booth on an overhead conveyor. This can be
done by robotic sprayers that are programmed where to spray as each part feeds through
the booth on the conveyor. The parts are statically charged to attract the powder to
adhere to deep crevices and bends within each part. The powder-coated parts are then
fed through an oven, usually with the same conveyor system, where the powder is
permanently baked onto the metal. The process takes less than 10 minutes.

Bending the tubing for the condenser and evaporator

The condenser and evaporator both act as a heat exchanger in air conditioning systems
and are made of copper or aluminum tubing bent around in coil form to maximize the
distance through which the working fluid travels. The opposing fluid, or cooling fluid,
passes around the tubes as the working fluid draws away its heat in the evaporator. This
is accomplished by taking many small diameter copper tubes bent in the same shape
and anchoring them with guide rods and aluminum plates. The working fluid or
refrigerant flows through the copper tubes and the opposing fluid flows around them in
 between the aluminum plates. The tubes will often end up with hairpin bends performed
by NC benders, using the same principle as the NC press brake. Each bend is identical
to the next. The benders use previously straightened tubing to bend around a fixed die
with a mandrel fed through the inner diameter to keep it from collapsing during the
bend. The mandrel is raked back through the inside of the tube when the bend has been
accomplished.
Tubing supplied to the manufacturer in a coil form goes through an uncoiled and
straightener before being fed through the bender. Some tubing will be cut into desired
lengths on an abrasive saw that will cut several small tubes in one stroke. The aluminum
plates are punched out on a punch press and formed on a mechanical press to place
divots or waves in the plate. These waves maximize the thermodynamic heat transfer
between the working fluid and the opposing medium. When the copper tubes are
finished in the bending cell, they are transported by automatic guided vehicle (AGV)
to the assembly cell, where they are stacked on the guide rods and fed through the plates
or fins.

Fig 3.1.3.: Air-conditioner manufacturing process

Joining the copper tubing with the aluminum plates

 A major part of the assembly is the joining of the copper tubing with the aluminum
plates. This assembly becomes the evaporator and is accomplished by taking the
stacked copper tubing in their hairpin configuration and mechanically fusing them to
the aluminum plates. The fusing occurs by taking a bullet, or mandrel, and feeding it
through the copper tubing to expand it and push it against the inner part of the hole of
the plate. This provides a thrifty, yet useful bond between the tubing and plate, allowing
for heat transfer.
The condenser is manufactured in a similar manner, except that the opposing medium
is usually air, which cools off the copper or aluminum condenser coils without the
plates. They are held by brackets which support the coiled tubing, and are connected to
the evaporator with fittings or couplings. The condenser is usually just one tube that
may be bent around in a number of hairpin bends. The expansion valve, a complete
component, is purchased from a vendor and installed in the piping after the condenser.
It allows the pressure of the working fluid to decrease and re-enter the pump.

Installing the pump

The pump is also purchased complete I h from an outside supplier. Designed to increase
system pressure and circulate the working fluid, the pump is connected with fittings to
the system and anchored in place by support brackets and a base. It is bolted together
with the other structural members of the air conditioner and covered by the wrapper or
sheet metal encasement. The encasement is either riveted or bolted together to provide
adequate protection for the inner components.

Quality Control

Quality of the individual components is always checked at various stages of the manufacturing
process. Outsourced parts must pass an incoming dimensional inspection from a quality
assurance representative before being approved for use in the final product. Usually, each
fabrication cell will have a quality control plan to verify dimensional integrity of each part. The
unit will undergo a performance test when assembly is complete to assure the customer that
each unit operates efficiently.

Televisions:

Walton brand of high-quality televisions, ranging from 19-inch to 55-inch, are manufactured
at Walton Micro-Tech Corporation, another sister concern of R.B. Group. Walton televisions
picture quality is so clear, sharp, bright and flicker-free that consumers have cordially accepted
the Walton brand of televisions. As many as 26 different models of televisions are
manufactured at Walton Micro-Tech Corporation. The latest and sophisticated technology is
used to make picture quality sharp, smooth and vivid. Walton has the capacity of manufacturing
one million television sets annually. It offers 3D LED, LED and LCD televisions at affordable
prices. It lasts long and consumes less electricity. Improved digital technology is used in all
models of Walton brand of television.

Housing

Almost all television housings are made of plastic by the process of injection molding,
in which precision molds are made and liquid plastic is injected under high pressure to
fill the molds. The pieces are released from the molds, trimmed, and cleaned. They are
then assembled to complete the housing. The molds are designed so that brackets and
supports for the various components are part of the housing.
 3.1.4. Television manufacturing process

Picture tube

The television picture tube, or cathode ray tube (CRT), is made of precision glass that
is shaped to have a slightly curved plate at the front or screen. It may also have a dark
tint added to the face plate glass, either during production of the glass or by application
directly to the inside of the screen. Darker face plates produce improved picture
contrast. When the tube is manufactured, a water suspension of phosphor chemicals is
allowed to settle on the inside of the face plate, and this coating is then overlaid with a
thin film of aluminum that lets electrons pass through. The aluminum serves as a mirror
to prevent light from bouncing back into the tube.

Glass for picture tubes is supplied by a limited number of manufacturers in Japan and
Germany. Quantities of the quality of glass needed for picture tubes are limited, and the
emergence of large-screen sets has created a shortage in this portion of the industry.
The large screens are also very heavy, so flat-panel displays using plasma-addressed
liquid crystal (PALC) displays were developed in the 1980s. This gas plasma
technology uses electrodes to excite layers of neon or magnesium oxide, so they release
ultraviolet radiation that activates the phosphor on the back of the television screen.
 Because the gas is trapped in a thin layer, the screen can also be thin and lightweight.
Projection TVs use digital micro mirror devices (DMDs) to project their pictures.

A shadow mask with 200,000 holes lies immediately behind the phosphor screen; the
holes are precisely machined to align the colors emitted by three electron beams.
Today's best picture tubes have shadow masks that are manufactured from a nickel-iron
alloy called Invar; lesser quality sets have masks of iron. The alloy allows the tube to
operate at a higher temperature without distorting the picture, and higher temperatures
allow brighter pictures. Rare-earth elements have also been added to the phosphor
coating inside the tube to improve brightness.

The electrons are fired by three tubulars, metal electron guns that are carefully seated
in the neck, or narrow end, of the tube. After the electron guns are placed inside the
tube, the picture tube is evacuated to a near vacuum so air does not interfere with the
movement of the electrons. The small opening at the rear of the tube is sealed with a
fitted electrical plug that will be positioned near the back of the set. A deflection yoke,
consisting of several electromagnetic coils, is fitted around the outside of the neck of
the picture tube. The coils cause pulses of high voltage to direct the scanning electron
beams in the proper direction and speed.

Audio system

The housing also contains fittings for speakers, wiring, and other parts of the audio
system. The speakers are usually made by a specialized manufacturer to the
specifications of the television manufacturer, so they are assembled in the set as
components or a subassembly. Electronic sound controls and integrated circuitry are
assembled in panels in the set as it travels along the assembly line.

Electronic parts

When the picture tube and the audio speakers and attachments are assembled in the set,
other electronic elements are added to the rear of the set. The antennae, cable jacks,
other input and output jacks, the electronics for receiving remote control signals, and
other devices are prepared by specialty contractors or as subassemblies else-where on
the assembly line. They are then mounted in the set, and the housing is closed.
Quality Control

As with all precision devices, quality control for the manufacture of the television is a rigid
process. Inspections, laboratory testing, and field testing are performed during the development
of prototypes and throughout manufacture so the resulting television is not only technologically
sound but safe for use in homes and businesses.

3.2. OPERATIONS COMPETITIVE DIMENSIONS

Cost: Waltons product cost is so cheap. Because its targeted customers are middle
class.
Quality: They look for cost 1st than quality.
Reliability: their products and customer cares are reliable.
Coping with changes in demand: as they analyze market regularly, the can change their
features into their customer demand.
Flexibility and new product introduction speed is not so good.

Plant -within a plant

Walton have different location within a facility are dedicated to different product lines. Each
location is operated according to its own strategy to minimize the confusion associated with
shorting from one type of strategy to another.

Straddling

Walton seeks to match what a competitor is doing by adding features, services, or technologies
to existing activities.

Order Winner

Walton differentiates the products and services of another companies by cost.

Order Qualifier

They screen product or service as a candidate for purchase.

Productivity

Their Raw material comes from United Arab Emirates (U.A.E), Katar, china, Korea, Thailand,
Malaysia, Brazil. And they maintain the resources technically and completely.

Key Performance Indicators (KPI)

Md. Mahmudul Haque,the HR manager evaluates economic performance and spot the need for
changes in operations. KPI include financial measures such as days; cash on hand and operating
income by unit or division, as well as non-financial metrics such as average time to respond to
service calls, lead time, or percentage of sales from new product.

3.3. PRODUCT DESIGN

Product design has two main issues-

Product Design Process: Walton have many engineers from BUET and RUET. They
design products, and if the manager approves the design, they proceed for project
mission statement.
Product Development Process:

Walton have R&D department for development process.

Contract Manufacturer

Walton is capable of manufacturing and or importing all components needed to product or

device. For example, they make compressor of freezer, but they import mobile phones.

Core competency

Walton provides potential access to a wide variety of markets

It increases perceived customer benefits by developing products as customers demand.
It is hard for competitors to imitate because of its low cost and large R&D sector.

3.4. PRODUCT DEVELOPMENT PROCESS

Planning: engineers plans how to develop product and makes project mission statement.
 Concept Development: its target market is middle income people and the price of
their products is comparatively lower than those of competitors. One concept is
selected for further development and testing.
System-level design: a special team designs it.
Design Detail: they keep a design detail to process plan and tooling.
Testing & refinement: finished product sends to BUET for testing that the product will
work as design or not.
Production ramp-up: they train lower level workers weekly or monthly and they sent
upper level workers abroad for training.

Other phases

Platform products: their concept development for computer and other electronics
assumes a proven technology platform.
Quick build products: their detail design and testing phases are repeated a number of
times until the cellular phones is completed or time or budget runs out.
Complex system products: Their subsystem and components are developed by many
terms for automobiles working in parallel.

Industrial Design

Design for the aesthetics & for the user. There are some lacks of industrial design, as following
for Walton-

Often injury
Excess feature

Quality Function Deployment (QFD)

Uses market research: Bangladesh with its growing population and economic growth has huge
demand for household products. The fact that only about 60% of the country has electricity
available proves that when electricity will be available throughout the country, demand will
increase further. As the people of this country are mainly price sensitive, Walton, being the
sole manufacturer of refrigerator, freezer and motorcycle, is very keen to meet the demand of
this large market by providing competitive prices. Waltons primary goal is to capture the local
market, as they are still behind market leader LG-Butterfly. But they are also exporting their
products. Already they have customers in Myanmar, Bhutan and to expand their market to
Africa.

House of quality

Walton product design team translates customer requirements into operating and engineering
goals. Like-

Every customer can get high quality product.

They can get their necessary product from any showroom.

They get warranty and guaranty

They can buy their product in a cheap rate

Value analysis/ value engineering

Cost accounting Department of Walton simplifies products and processes by achieving

equivalent or better performance at a lower cost.

3.5. PRODUCT PRICING

Price decisions must be coordination with product design, distribution, and promotion
decisions to from a consistent and effective marketing program. Pricing for WALTON
products: In case of the product Refrigerators and Freezers, WALTON Hi-tech Industries ltd..
has adopted the following price on the basis of following formula-

Selling price = Landed cost (LC) + Administrative cost + Transportation cost +Warehousing
cost + VAT + Profit margin

3.6. STRATEGIC CAPACITY MANAGEMENT

a) Home appliance market is the worlds largest consumer goods market and WALTON Hi-
Tech Industries Ltd. is one of the major organizations in home appliance in Bangladesh most
of the companies are moving globally to sound growth rate. WATON is not exception from
this criterion. The brand WALTON one of the major international brands possessed by
WALTON Hi-Tech Industries Ltd. is assisting to get moving globally.

b) The basic intent of the report is to present the performance WALTON Refrigerators and
Freezers of WALTON Hi-Tech Industries Ltd. and to enhance the value of brand and product
in a very complex competitive environment. The report discusses the competitive market
analysis of WALTON Refrigerators and freezers. Consumer perception of a number of brand
alternative, nature of Distribution channel and their activities, advertising and promotional
activities, market share and growth. The outcomes of the analysis are shown in brief.

c) Rivalry is likely to increase its WALTONS strategic move to global market has been
successful.

d) The life cycle stages of the products of WALTON are mostly in nature stage.

e) All the big companies in the market are acquiring small companies and as the product range
is quite large they enjoy Economics of scale.

f) Customers are very brand loyal.

g) Some rivals have good distribution channels.

h) As buyers preferences are changing it is inducing the industry to change.

i) An intense competition is going on the market of home appliance between the brand and
non-brand product.

j) The increasing demand for non-brand product is due to lower price rather than other

k) Walton are most demanding in the gray market because of lower price, nice getup and for
guarantor period.
l) The demand of Microwave oven is increasing day by day which is a positive sign for
WALTON

m) Rice is the first choice of the customer for purchasing Microwave oven in the gray market
but brand loyalty and quality are not ignorable

3.7. CHALLENGES AND FUTURE GROWTH

Current Market Status:

Although Walton is a growing brand, it is yet to establish itself as the market leader. In fact, it
still has a long way to go, especially in capturing the elite customer bracket.

Table 3.7.1.: Market Comparison

Price Quality Variety Distribution Scope of

growth
Walton **** ** * *** ****
LG *** **** **** **** **
Sony * *** *** * *
Singer *** ** ** ** **
Samsung ** *** ** * *

we can see from the above table that clearly overall LG leads and have a significant lead when
it comes to these values. They have been in the market for 20 years and have done remarkably
to capture nearly one-fourth of the total home appliance market. But coming second right now
is Walton. By providing the same quality in much lower price, Walton has created an excellent
brand following. They have a very good distribution system, without lets all over the country.
But their main problem has been variety. They are still way of the benchmark at the moment
when it comes to product variety. But Walton will put more emphasis in this sector and plan to
catch the lights of LG and Sony in the next 5 years.

Challenges:
Establish Walton as the No.1 Home Appliance Brand of the Country
Capturing the market share of existing foreign brands
Bringing more variety in their product line
Continue increasing market share at the same rate over the next 5years.

Future Growth:

Walton has decided to penetrate market, develop both market and product to achieve profitable
growth in future.

Market penetration

Through extensive promotion campaign Walton has set goals to make more sales in future.
Countrywide distribution system helps it achieve its goals.

Market Development

Walton is exporting its products in Middle East, Latin America and Africa. It has plans to
explore European markets also.

Product Development

Recently, Walton brought Air-Condition in market. Though it hasnt gained spectacular market
share yet, continuous customer attraction reflects future.

Table 3.7.2.: Future Growth of Walton

Product Line Present Market Expected Market Main Competitor

Share Share
Motorcycle 5% 25% Bajaj, Hero, Honda
TV 8% 30% LG, Sony
Refrigerator 13% 25% LG, Samsung
Air-Condition 2% 10% LG, General, Gree
3.8. LOGISTIC AND TRANSPORTATION MANAGEMENT

Channels distribution of WAL TON Products

production and distribution network

Mass Customization and Increased co-production of goods and services are controlled
by Research and Development sector of Walton.

Any sequence of institutions from the producer to the consumer including one or any number
of middle men is called channel of distribution-Mc Carthy. Producers normally use a number
of marketing intermediates for taking their products to users. Marketing intermediaries bear a
variety of names such as: sole selling agents, stockiest, Wholesalers, franchised dealers
retailers, authorized representatives, brokers/ commission agents and jobbers. All such
intermediaries constitute the distribution channel. The depots/ showrooms and other direct
outlets of producers also from part of distribution channel. Manufacture Channels Distribution
Consumers Role and Important of distribution channels Distribution channels play a pivoted
role in the successful marketing of most products especially consumer products. Channel
perform a wide variety of functions the important of distribution channels can be understood
clearly by analyzing the wide variety of function perform by them. Channels provide
distribution efficiency to manufactures. Channels supply products in required assortments.
Channels provide salesmanship. Channels help merchandise the products. Channels
look after physical distribution and financing functions. Channels decisions have a vital
bearing on decision on other areas of marketing. Channels act as change agents and generate
demand. Channel levels. Channel members. Channel length.

WALTONs Channel of distribution Company decide on the best way to store, handle, and
move their products so that they are available to customers in the right assortments, at the time,
and in the right place.

Logistic effectiveness will have a major impact on both customer satisfaction and company
costs. a poor distribution system can destroy another wise good marketing effort. Butterfly
Marketing Ltd. is maintaining the following distribution channel under the direct supervision
of logistic department through authority to maintain the product property and to teach the final
consumers. Supply chain Import Warehouse Logistics Dept. Marketing Dept. Outlet Ultimate
Customer Service center.
Physical Distribution: Physical distribution looks after physical handling of goods, and
assures maximum customer service. It airs at offering delivery of right goods at the right time
and places to customers. Physical distribution activities cover. Order processing handling
of goods Packaging Warehousing transportation Inventory and Customer service.
All middle men in distribution perform these functions and they assure putting the product with
in an arms length of customer desire and demand. Opinion about showrooms decoration
positive impact.

Current Issues in operation management

They have specialized engineer for Out sourcing

Global supplies:

Walton pursues its 21st century vision of becoming a true universal digital brand
through innovative design, latest technology and proper customer satisfaction. Walton
set its vision to take a place among the top electronics, automobiles, and
telecommunication Industries in the world by 2015. The products of the company have
acquired a significant local market share and are also exporting to different countries
in the world like United Arab Emirates, Myanmar, Sudan, Qatar etc. And we are
prepared for huge market access to Australia, Singapore, Poland, Romania, Ethiopia,
Saudi Arabia, South Africa, Oman, Kuwait, Yemen, Bhutan, Nepal, Bahrain, Nigeria
and Ghana. Their major overseas distributors are:

Table 3.8. Global supplies

Australia United Arab Emirates (U.A.E)

GBTC Australia 13 brechin court, Greenvale mohd. Maqbol general trading (1l.c) 117-
vic-3059, Australia. Tel: 0061 393 335 183 236, al murar, Deira f-314 (3rd floor) United
mobile no. : +0061 410 262 731,0061 415 Arab Emirates mobile: +971 50 884 5306,55
506 805 649658

Qatar North Sudan

Nasser bin Saad trad, cont. Est. C.r. No. nageer engineering enterprises 60, street, taif
23175 p.o box no. 23695 Doha, Qatar tel: khartoum, North Sudan tel: 0024 9912 392
0097 4482 0029 336

Singapore Myanmar
Tanmoy enterprise25/27 lembu road, hero international entp ltd.No. 186/188,
Singaporemobile: ground floor, pansodan t/ship,Yangon,
+6598 620 665, +6582 372 Myanmar. Tel: 0095 1388 438, 391575

India Ghana
bothra international p.o: Mankachal dist: Ahmed kabir ltd. P.o: box: af 1747Accra,
Dhubri, Assam. Tel: 0091 9435 015 652 Ghana tel: 00233 263 945 965

CHAPTER 4: ANALYSIS AND FINDINGS

4.1. COMPETITIVE ANALYSIS
In the field of home appliances such as television, refrigerator, freezer, air-condition etc. Some
of Waltons competitors are:

Competitor

Television
Refrigerator Air-condition

LG - LG
SONY LG GENERAL
SINGER - GREE
SAMSUNG - SAMSUNG
PANASONIC WHIRPOOL -

Fig 4.1. Competitive Analysis

Most of these brands have been in this market for a long time. But none of them were able to
match the market growth of Walton in the last 3 years. Although LG-Butterfly is the no.1 home
appliances brand in the country, Walton is catching up fast. Walton has started manufacturing
major parts for the assembly of motorcycle. Right now they hold nearly 8% of the market share.
Its competitors are:

BAJAJ HERO HONDA DAYUN TVS SINGER BUTTERFLY ZALLIN

4.2. FINANCIAL ANALYSIS AND FINDINGS

Summary of the Financial Report of Walton of the year 2016:
 Table 4.2.1.: Financial analysis of Walton HIL

Particulars Amount Tk.

Total Sales 2,553,024,782.10
Cost of Goods Sold 2,414,093,716.05
Gross Profit 305,852,566.6
Operating Profit 99,636,450.2
Net Profit 26,530,733.5

Table 4.2.2.: Estimated costs for manufacturing Walton products:

Description Cost (US $)

Costs of plant equipment modification 2,260,000

Product redesign, prototype development and testing 500,000

Safety system for testing and verification 250,000

Training 20,000

Installation and commissioning 169,500

Civil construction and other miscellaneous 50,000

Contingency 324,950

Total 3,574,450

Co-financing 1,000,000

Total fund requested 2,574,450

Walton strategy is to continue to exercise strong discipline over their operating costs and capital
expenditure to achieve improves efficiency and productivity in their operations and leverages
their existing capacity. They have also plan to reduce their operation and maintenances expense
by, among other things, using solar power, controlling service agreement pricing and lobbying
to reduce the other tax. Thats why they are using as
 continuously grow manufacturer base

focusing on high value customer

Achieve capital and operational efficiencies to improve profit margins and cash flow
generation.

Increased Brand Awareness and reinforce brand values.

Increased revenue from news services

Continue to expand their comprehensive distribution product.

Standard quality certificates including ISO 9001:2008 & ISO 14001:2004

Walton service network is the countrys only ISO 9001:2008 Standard Certified after sales
service network.

CHAPTER 5: RECOMMENDATION
I recommend the following steps:
1) Price can be reduced to attract the customers mostly.

2) More advertising campaign should be taken to attract the customers.

3) Number of showrooms should be increased.

4) Credit facilities could give to the dealer in some cases.

5) Set up a control R & D department to make R & D activities more cost-effective & fruitful.

6)Product quality should be increased.

7) Should have in house advertising agency.

8) After sales services facilities should be prompt &with care.

9) Strengthen channel of distribution.

10) Can diversify in other domestic products to gain economics of scale.

12) Setting up a strong image.

13) Can improve promotional activities. (Consumer promotion, trade promotion)

CHAPTER 6: REFERENCE
1. http://www.waltonbd.com/?route=information/information&information_id=4
2. https://www.slideshare.net/nahiduzzaman/walton-clasic
3. https://en.wikipedia.org/wiki/Walton_Group
4. http://thenewnationbd.com/newsdetails.aspx?newsid=39903
5. http://mail.banglanews24.com.bd/English/detailsnews.php?nssl=0a2fbc3a7639168c9
e918f557d1802ac&nttl=2012042134758
6. http://www.thedailystar.net/newDesign/news-details.php?nid=147229
7. "Walton brings revolutionary change in manufacturing hi-tech products: Azad"
(http://www.theindependentbd.com/business/finance/99024-walton-brings-
revolutionary-change-in-manufacturing-hi-tech-products-azad.html)
8. "FBCCI for budgetary support to high-tech product makers"
(http://www.thefinancialexpress-bd.com/more.php?news_id=122868&date=2012-
03-10);
9. "Walton will be global brand by 2015: Its MD reiterates in exclusive interview with
daily sun" (http://www.daily-sun.com/details_yes_29-01-2012_Walton-will-be-
global-brand-by-2015_40_1_3_1_29.html);
10. "Bangladesh electronics giant Walton enters GCC market"
http://gulfnews.com/business/aviation/bangladesh-electronics-giant-walton-
entersgcc-market-1.990514