For office use:

Grade

Communication for Managers

Case Assignment No. 1/2
Case Analysis Report on
Pramanik Containers and the
Bottleneck Challenge

Submitted by:
Name: Visharad Kumar Agarwal
Roll No: 161267
Section: B
Batch: MBA FT (2016-2018)

Institute of Management, Nirma University

Date of Submission:23/08/2016

UNDERTAKING

To Whom It May Concern:

I, Visharad Kumar Agarwal hereby declare that this assignment is my original work and is
not copied from anyone / anywhere. If found similar to other sources, I shall take complete
responsibility of the action, taken thereof by, CFM Team.
Signature :
Name

VISHARAD KUMAR AGARWAL

Roll No.

161267

Section

Batch

MBA FT (2016-2018)

Date

23.08.2016

Pramanik Containers and the Bottleneck Challenge

DIAGNOSTIC REPORT

SITUATIONAL ANALYSIS
Pramanik Containers Pvt. Ltd. (Pramanik) was an aerosol manufacturing company
established by Bansilal in 1977. Its a business to business company and one of its loyal
customers was ABC Pharma. Pramanik's was known for its product quality and fast service
and along with Bansilal's business understanding helped the organization to make a good
position in the market. The business operation is divided into fabrication and printing
process. It had 4 automatic fabrication machines with a capacity of 1,44,000 cans per day
with a three 8 hours shift, on the other hand printing machine can produce 1,44,000 cans in
only an 8 hour shift. In 2009 Pramanik enrolled a business turnover of Rs. 310 million. Its
significant customers were cosmetics, perfume and pharma organizations. A large portion of
these organizations had a changing item run and Pramanik handled a good amount of orders
from these organizations was. Pramaniks customer base was around 100 out of which 15
were regular and made up around 80 percent for the whole revenue.
In 2010 Bansals son Piyush Mehta a recent family business post graduate joined Pramanik.
On the very first day he encountered a bottleneck in the printing department of the company.
By talking to Rakesh an account assistant Piyush came to know about that the company was
making new plates even for the repeated orders due to the mismanagement in the manual
registry process and storage of printing plates inventory, which resulted into huge time &
productivity loss in finding the required plate from the inventory for the reuse. This plate hunt
also resulted into the overtime cost of the employees and ultimately the company got
compelled to make a new plate that in itself costs 7000 per piece. In the end he collected
some suggestions like the ERP system which the other top competitors were also using,
acquirement of a warehouse and addition of employees.
After seeing all this, Piyush went to his father and showed his high consideration towards
these inefficient operations and also condemned the over dependency on the printer head
Shanker who also showed an unacceptable organizational behaviour to him. But Bansilal had
a different point of view, he never saw the problem with that much severity and also had an
conventional approach towards the working operations of the company. He was also a smart
businessman as he used to evade taxes by making his personal expenses from the companys
money. Piyush convinced his father to let him handle the situation but with a condition that
he would not invest any further amount.

Problem Statement
No regulated inventory and improper received order management

Objectives

To increase productivity
Minimization of cost incurred
Systematic entry of orders received
To systematically regulate the inventory management

Options
1) Installing an ERP system
2) Addition of more employees
3) Computerised data storage for systematic input of orders received and inventory stock
monitor.
4) Improving the inventory storage by proper labelling of plate numbers on their storage
racks or boxes and dividing the storage space by product specific categories.

Evaluation of options
1) ERP stands for Enterprise Resource Planning system which integrates all the various
processes of the company. This can make the collection, observation and managing of
data more easy and systematic.
2) More employees will enhance the man power of the company and can appoint
specific person for registering effectively and more employees for finding plates.
3) Computerised data methods like excel sheets can be used to systematically input the
received orders categorically and will make the search easier of inventory.
4) By proper labelling, tagging and allocating storage space product category wise can
make the search of printing plates much easier and faster.

Decision
Objectives
Objective 1
Objective 2
Objective 3
Objective 4

Option 1

Option 2

Option 3

Option 4

From the above option-objective matrix I would choose option 3 i.e. computerised data
storage for systematic input of orders received and inventory stock monitor as most
appropriate and feasible to attain maximum objectives. As it is more future oriented and
would be a long term profit making step as it will make the process much faster, easier and
efficient. It will also enable the workers to have productive utilization of their time and will
also lead to the end of overtime costs and also not incur too much cost.

Action Plan
The action plan would include

The proper installation of systems with keeping in mind the required computer
specification for future.
Installation of required software
Training of employees
Required furniture installation
It also includes the data backup process whether online or offline.

Contingency Plan
For contingency plan, option 4 i.e. improving the inventory storage by proper labelling of
plate numbers on their storage racks or boxes and dividing the storage space by product
specific categories would be most feasible as will not add much cost and will result into
achievement of 3 objectives.

Executive Summary
Pramanik Containers Pvt. Ltd. was an aerosol manufacturing company founded by Bansilal.
Bansilals son i.e. Piyush Mehta who was a recent family business post graduate joined
Paramanik and found that there was some problem in printing department. By talking to
employees he came to know about the cause i.e. improper order registration and inventory
management. After that he took the charge of resolving this problem.
The most preferable option for him is to install computerised data storage for systematic input
of orders received and inventory stock monitor.