MGT 337 Final Work
MGT 337 Final Work
MGT 337 Final Work
An Overview
On
“Meghna Group of Industries”
1|Page
An Overview On
Submitted by
Name University ID Serial No
Md. Tuhin Sarwar 2017-2-10-207 24
Sadia Mojumdar 2016-1-10-154 02
Tanzim Chowdhury 2018-1-10-020 28
Mahjabin Muntahi Panshi 2018-1-10-342 35
Md.Saroare Hossen 2018-2-10-163 38
Musharrat Rashid Mila 2017-2-10-131 20
Letter of Transmittal
19th May 2021
Kaniz Fatima
Senior Lecturer
Dear Ma’am,
With due honor, we wish to inform you that it was a matter of great pleasure as well as learning
to prepare a term paper on Critical Analysis of Production Operation Management of a
particular Company under the course of Production Operations Management. We collect &
studied materials in due time and analysis these & eventually finalize the term paper.
We enjoyed more in preparing this term paper & record new statements. We have worked hard
to prepare this term paper. So, we would highly oblige if the content of the term paper has been
accepted to you.
Though we have put our best efforts, yet it is very likely that the term paper may have some
mistakes & omissions that are unintentional. So, we hope that the term paper will worthy of your
consideration.
Truly Yours,
At the very beginning all praises for almighty Allah for enabling us to complete the term paper
with good and sound health. Then, we would like to take this opportunity to express our gratitude
to our course instructor Kaniz Fatima ma’am (Senior Lecturer, Department of Business
Administration) for his continuous inspiration, supervision, and patience. Without his guidance
and support it would not have been possible to come this far.
We also sit with our group members for several occasions, discussing the ways of making the
term paper rich and sound. Without their help the term paper would have been incomplete. So,
we are cordially grateful to them.
At the last we want to thank that who have played a very important role in preparing of this term
paper Mr. Md Taslim Shahriar who is the Assistant General Manager of Meghna Group of
Industries. He has given us the important information and helped us in preparing this term paper.
Table of Contents
Executive summary......................................................................................................................................................................7
Introduction..................................................................................................................................................................................8
1.1 Objective of the Study............................................................................................................................................................8
1.2 Limitation of the Study...........................................................................................................................................................8
1.3 Methodology...........................................................................................................................................................................9
1.3.1 Primary data source.............................................................................................................................................................9
1.3.2 Secondary data source.........................................................................................................................................................9
2.Literature view.........................................................................................................................................................................10
3.Company overview:.................................................................................................................................................................10
4.Labor Productivity:.................................................................................................................................................................10
5.Machine Productivity:.............................................................................................................................................................11
6.Capital Productivity.................................................................................................................................................................11
7.Improving Productivity...........................................................................................................................................................11
8.Process Strategies....................................................................................................................................................................12
9.Facility Layout.........................................................................................................................................................................13
10.Facility Layout Objective-.....................................................................................................................................................14
11.Product Facility Layout Example -........................................................................................................................................15
12.Product Strategy....................................................................................................................................................................15
13.Scheduling:............................................................................................................................................................................17
14.Forecasting............................................................................................................................................................................17
15.Inventory Management:.........................................................................................................................................................18
16.Objective of Inventory:..........................................................................................................................................................19
17.Enhancing Cash Flow:...........................................................................................................................................................20
18. Minimizing waste.................................................................................................................................................................20
19.Cost cutting............................................................................................................................................................................20
20.Installing better equipment....................................................................................................................................................20
21.MRP (Material Resources Planning).....................................................................................................................................21
22.ERP (Enterprise Resource Planning):...................................................................................................................................21
21.1Activities of Operation:.......................................................................................................................................................21
22.SAP Software Projects:.........................................................................................................................................................22
Recommendation:.......................................................................................................................................................................22
References:.................................................................................................................................................................................22
Executive summary
We have prepared this report on “Meghna Group of Industries”. MGI is one of the largest
Bangladeshi Industrial conglomerates. This industries under this conglomerate include
chemicals, cement, consumer products, real estate, insurance, securities, utilities etc. Meghna
Group of Industries mainly deals with Fast Moving Consumers Goods (FMCG). In this report are
presenting the operation related activities. The main thing a of organization is product or service
that they are selling. We have discussed about the product category in this report. We have also
discussed about the productivity of this organization. In productivity we have focused on raw
materials, labor/staff, capital, energy. We also suggested in the term paper can they improve their
productivity. In the process strategy they are following assembly process strategy. In the facility
layout part, we have mention about their facility layout and how can they improve that. Another
important topic is forecasting. Forecasting means measure the next period demand by using the
past demand data. It is very important for an organization not to make any mistake in forecasting.
We try write about their forecasting method. Inventory management is one of the major areas of
an organization. If an organization manage their inventory well, they can earn more profit.
Sometimes because of poor inventory management organization facing loss and lose the
customer. We have discussed in detail the inventory management. ERP and MRP system of any
organization control the whole activities of the organization. So, it is very vital to use very strong
and user-friendly systems. So that organization may not face any lacking in future. On the other
hand, if they use user friendly system then the employees will not face any difficulty while using
it. Besides that, also cover the important topics such as scheduling, product strategy. At every
topic we try to be mentioned how can they improve in that section. We try to cover every
possible topic of operation production management.
Introduction
- academic lectures
- Different Books Related to production operation management
-Observing the rules and formats
-Class Lecture Notes
-interview
3.Company overview:
Fresh Cement Mills Ltd, the Meghna Group's first manufacturing unit, is one of the country's largest
cement producers, delivering nearly 1 million metric tons per year. The Fresh Cement Mills Ltd is an
accredited company by the International Standard Organization (ISO 9001: 2008) that manufactures
goods for both domestic and international markets. Between 1995 and 1996, the firm was listed on the
Dhaka and Chittagong Stock Exchanges, the country's two stock exchanges.
4.Labor Productivity:
The aim of this article is to investigate productivity determinants and their relationships with cement
industry productivity. In Bangladesh, to be precise. From the literature, fifty-six essential productivity
variables were established. A relative significance index value of 0.4 was used as a cut-off point for
ranking factors in descending order. Principal component regression was used to aggregate the
remaining 37 variables into five strongly predictive factors. Finally, a structural equation model was
created to show how the defined principal components and productivity are linked.
The top five significant factors were found to be effective raw material usage, management ability,
inspiration, a lack of skilled labor, and skill-enhancing preparation. Process efficiency, marketing and
supply chain, management and technical factors, human and safety factors, and government and
political factors were discovered to be the most important determinants of productivity. Finally, it was
discovered that the known principal determinants have a positive effect on the competitiveness of
Bangladesh's cement industries.
5.Machine Productivity:
Cement Manufacturing Process Machine for Making Cement Manufacturing Facility. The raw material
for the cement production operation is my machinery. Area of application: It is widely used in the
cement, metallurgy, and chemical industries, among other things. Obtain details; GLOBAL
ENGINEERING INC. CEMENT PLANT POWER Cement plant equipment’s producer and, Cement
Plant Equipment’s; Cement Plant Machines; Cement Plant Equipment’s; Cement Plant Machines;
Cement Plant Equipment’s; Cement Plant Machines; Cement Plant Equipment’s; Cement Plant
Machines; Cement Plant Equipment’s; Cement Plant Machines; Cement Plant Cement factory
machinery and equipment are portable, Process Equipment for Cement Plants What devices are used in
the cement industry? Manikgarh is a city in Rajasthan, India. Process, Process, Quality, and Production
Process for Cement. Powdered coal is the primary raw material for the line-burning fire.
6.Capital Productivity
We can calculate capital productivity in two ways. Here we will follow units of output per dollar
input. Investment of capital is a broad calculation by itself, but for the calculation we tried to
understand total invested capital for a product. They said that, for producing 2500 units of product,
they invest around $13,800. So, here capital productivity is = 13800/2500 = $5.52 per unit.
7.Improving Productivity
Every business wants to make its productivity high because higher productivity brings higher margin
in a business. Increment in productivity level, reduce production cost. So, company can make more
profit using same amount of capital.
Here are some ways, that they have taken to improve their productivity. So, here capital productivity is
= 13800/2500 = $5.52 per unit.
8.Process Strategies
A process entails the utilization of an organization's resources to provide something of value. There can
be no service or product without a process, and no process can exist without at least one service or
product. One recurring issue in process management is supply chain processes. Decisions about how to
provide services or make products for external customers or suppliers are made in business processes.
Many different choices are available in selecting human resources, equipment, outsourced services,
materials, workflows, and methods that transform inputs into outputs.
Process Strategies choice is demand driven. The two key questions in process selection are:
1. How much variety will the process need to be able to handle?
2. How much volume will the process need to be able to handle?
Answers to these questions will serve as a guide selecting appropriate process strategies. Volume
and variety are inversely related. A higher level of one means a lower the other.
There are various Process Types. Among which Meghna group of industries follows - Repetitive or
assembly line or mess production process type. This process technology is best suited for a limited
number of standardized products produced in large quantities. Meghna Industries chose this process
because they produce a large volume of standard goods. And worker skill is generally not required. One
worker or laborer does not need to be skilled in multiple areas. Because their production process is
standardized, their current process strategies are successful. The Meghna group of industries focuses on
volume rather than variety. Special purpose equipment is used for a variety of tasks throughout the
operation management. The level of skill required for these jobs is low. Example of Process Strategies –
9.Facility Layout
It is critical for an organization to pay close attention to facility layout to have an effective and efficient
manufacturing unit. The layout of a facility is the arrangement of various aspects of manufacturing in an
appropriate manner to achieve the desired production results. The layout of a facility considers available
space, the final product, the safety of users and the facility, and the ease of operations.
An efficient facility layout ensures a smooth and consistent flow of production material, equipment, and
manpower at the lowest possible cost. The physical allocation of space for economic activity in the
plant is referred to as facility layout. As a result, the primary goal of facility layout planning is to create
an efficient workflow that will increase the productivity of both equipment and workers.
10.Facility Layout Objective-
A model facility layout should be capable of providing an ideal relationship between raw materials,
equipment, manpower, and final product at the lowest possible cost in a safe and comfortable
environment. The following goals can be met by an efficient and effective facility layout:
To ensure the optimal uses of available space, resources, and manpower to produce the intended
good at a minimum cost.
To reduce movement of worker’s raw materials and equipment.
To increase effectively and efficiency of production.
To promote safety of plant as well as its worker.
Increase the production capacity of the organization.
Various facility layouts are used by various organizations and businesses depending on their needs.
Meghna Industries follows Product Facility Layout – design to efficiently produce a specific product.
They separate the production of raw materials from the final product. They have advanced sections that
produce raw materials. The mixing and structure are handled by the under section. The final touchup is
done by another section to produce a finished product. The final section inspects the product quality and
prepares it for inventory storage and safe product delivery to the buyer. Meghna maintains separate
warehouses for raw material and finished goods inventory.
11.Product Facility Layout Example -
12.Product Strategy
Product strategy defines what a product should accomplish and how it will benefit the organization.
Product strategy describes how the product will benefit the business; it describes the problem that the
product will solve as well as the impact it will have on customers and the company.
Meghna Cement Mills Limited covers the local market by assigning distributors to specific sales areas.
The company's goal is to cover the entire Bangladesh market. The factory is in Mongla, Bagerhat,
beside the Pashur River. The company must bear significant transportation costs for the distance, which
must ultimately be factored into the price of the cement bag. Despite the claim of high quality, this will
result in the customer's loss. Furthermore, because of the long distance and time, the packaging of the
cement is harmed, resulting in an increased number of waste products.
Meghna Cement Mills Limited follows some rules to distribute their products. They follow: –
1. Channels
2. Coverage
3. Assortments
4. Locations
5. Inventory
6. Transportation
7. Logistics
Meghna has its own carefully selected distribution network that covers the entire country's market. The
country is being reached at every possible point. It bridges the significant time, place, and possession
gaps that exist between goods and services and those who would use them. The distribution channel for
King Brand Cement is as follows:
King Brand Cement divided their entire market into two zones: East Zone and West Zone. The East
zone includes Dhaka, Gazipur, Mymensingh, Bhairob, Jamalpur, Chandpur, and other cities, while the
West zone includes Faridpur, Rajshahi, Kustia, Khulna, and Barishal.
13.Scheduling:
Scheduling is defined as "the specification of when and where each operation required to manufacture
the product is to be performed." It is also defined as the determination of the times at which each event
or operation comprising a procedure should begin and end.
The Meghna group of industries always abides by the company's rules and regulations. Scheduling is
essentially a short-term execution plan of a production planning model. They schedule is an assignment
problem that specifies which activities must be performed and how the factory's resources should be
used to meet the plan's requirements Detailed scheduling is essentially the problem of allocating
machines to competing jobs over time while keeping constraints in mind. The scheduling principle is to
plan the sequence of work so that production can be systematically arranged toward the end goal of
completing all products by the due date. A proper scheduling plan can drive the forecast to predict
completion dates for each released part and provide data for deciding what to work on next.
14.Forecasting
Understanding and anticipating market needs is the first step in effective distribution and manufacturing
management. Forecasting is the process of predicting future sales demand based on past sales demand.
Implementing a forecasting system allows you to quickly assess current market trends and sales,
allowing you to make informed decisions about your operations.
Meghna group of industries always follow forecasting method, and they got many advantages such as:
Customer orders.
Inventory.
Delivery of goods.
Workload.
Capacity requirements.
Warehouse space.
Labor.
Equipment.
Budgets.
Development of new products.
Work force requirements.
15.Inventory Management:
Inventory is defined as those stocks used to support production, such as raw material and Work in
Process, supporting activities, such as maintenance, repair, and operating supplies, and finally Customer
Service in the form of finished goods and spare parts. There are three types of Inventory, Raw material,
work in process good, finished goods.
Meghna Group of Industries (MGI) is a one of the largest Bangladeshi industrial conglomerates.
They make Plan and develop Standard Operation Procedures (SOP) of store/warehouse management.
Meghna Group of Industries perform the following task to do a proper Inventory Management:
1) Coordinate and supervise day-to-day activities of store department.
2) Maintain Strong coordination with the team and user departments.
3) Monitor and generate all kinds of reports including slow moving & dead items
4) Identify outdated/damaged products and inform proper authority for replacement.
5) Ensure proper cleaning up & hygiene inside the store.
16.Objective of Inventory:
Preventing Dead Stock or Perishability: With an optimal inventory level, the chances of wastage in the
form of goods spoilage or dead stock.
Optimizing Storage Cost: It reduces the chances of maintaining excessive stock, even the requirements
are pre-determined, which ultimately cuts done the unnecessary warehousing costs.
Maintaining Sufficient Stock: Now, the production department need not worry about the shortage of
raw material or goods because of its constant supply.
Inventory has a significant impact on the cash flow of the company. With effective inventory
management, the organization can ensure sufficient liquid cash to enhance its operational efficiency.
Reducing the Inventories’ Cost Value: When there is a constant purchase of goods or stock, the
organization can ask for discounts and other benefits to decrease the purchase price.
19.Cost cutting
It is always better to reduce cost of production. If the company can manage to buy raw materials at a
low cost, then their production cost will be automatically lower. Meghna Group also cut of waste
material and extra staff from business.
Most of the Meghna Group's industrial units have been awarded ISO9001; 2000 certification for their
uncompromising product consistency and good management policies. To satisfy its power needs, the
Group has its own Power Plant with a capacity of 60 MW. The group has built Unique Power Plant
Ltd.-I, a 28 MW power plant designed by the world-renowned Rolls-Royce Marine AS to meet its own
power needs as well as to supply REB and neighboring industries. United Sugar Mills Ltd., the newest
member of the Meghna Group, has a daily sugar production capacity of 1000 MT.
Quick Moving Consumer Goods (FMCG) is one of Bangladesh's largest and fastest growing industries.
Fast Moving Consumer Goods (FMCG) are low-involvement items that are used on a regular basis. The
FMCG industry has been experiencing a competitive business environment in recent years. Formerly
famous brands have gone out of business in some cases or are surviving as a middle ground between
market leaders and low-cost rivals, partially due to the difficulty of tracking customer brand
preferences. Consumers can change their minds after deciding on a particular brand at the time of
purchase.
Becoming the country's leading industrial conglomerate, striving to make Bangladesh self-sufficient in
the production of a variety of consumer and industrial goods MGI also aspires to be a market leader in
terms of product quality and customer loyalty by offering affordable prices and services.
Enterprise Resource Planning is more updated than Material Resource planning combines the
computerized functions of all division and back of the firm. A company cannot handle one specific area
rather they manage Marketing, HR, Finance, and many more significant areas so for doing these areas
work more conveniently company would rely on software and technological devices. So Meghna group
of industries usual activity are done in short time due to oversimplify all significant areas by using ERP.
21.1Activities of Operation:
1.Plan and build store/warehouse management Standard Operating Procedures (SOP).
2.Coordinate and supervise the store department's day-to-day operations.
3.Maintain excellent communication with the rest of the team as well as the customer departments.
4.Monitor and generate all kinds of reports including slow moving & dead items
5.Identify goods that are out of date or damaged and report them to the appropriate authority for
replacement.
6.Ensure that the store is kept safe and sanitary.
7.Prepared to face a store department audit and inventory on a weekly, half-yearly, or annual basis.
8.Monitor store ledger and keep it updated all time
1.As per demand and approval notice, generate Local PR, Import PR, Service PR, and Assets PR in
SAP.
2.Both types of PR and release functions can be edited and deleted.
3.To make a Purchase Order, such as a Spot PO, a Local PO, or a PO Return.
4.Both types of PO and escape functions can be edited and deleted.
5.To finish GRN in SAP.
6.To produce an invoice in SAP,
7.SAP Stock Analysis Summary
Recommendation:
Meghna group industries mainly contribute to our GDP we have been seeing that this company are
doing a great role in our country and fulfill our countries people major demand recently we have been
seen that Meghna group of industries purchased 200 million Tk pump oil in the devastating situation of
covid 19 time when our country was full lockdown and they did a tremendous work towards the people
of our country this is the tremendous work on that time so we have been seen that Meghna group always
compete with Abul Khair group in our country an we all know that Abul Khair group is far way
compare to Meghna group so if Meghna group has to reach number one position among all other
companies then they have to managing inventory management sector much more sophisticated way.
References:
4.https://en.wikipedia.org/wiki/Meghna_Group_of_Industries
5.https://www.thedailystar.net/business/news/meghna-group-launches-two-
6.oceangoing-vessels-2058461
7.https://www.assignmentpoint.com/business/marketing-business/products-and-
subsidiaries-of-meghna-group-of-industries.html
.