Professional Documents
Culture Documents
KPC
KPC
MGT 314.12
SUBMITTED TO:
Yurika Uematsu Bhuiyan
Lecturer, Department of Management
North South University
Submitted By
Group:Merchant & Co
Name ID
page
1 Executive Summary 3
5 Process map 11
8 Operational problems 13
10 Appendix 16
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1. Executive Summary
KPC Industry designs disposable paper cups that are 100% bio degradable. Company is
specialized and engaged in food service packaging. Current range of major products includes
disposable paper cup & plate in various sizes which are used for both hot and cold beverages
At present, the company is engaged in the manufacture and supply of disposable paper cups &
plates for serving beverages. The size range varies from 80ml to 350ml for cup and 7 inch to 10
Goal
The world of smart disposable paper cups. KPC Industry designs disposable paper cups that are
attractive outside and of the highest quality inside. The exception is to sustain the earth with eco-
friendly materials.
Capacity
KPC have a production capacity of 5 million to 10 million cups & plates monthly and can assure
that any large requirements can be catered to. KPC herewith commit that we are in a position to
cater to an entire yearly consumption of a major international food division and provide excellent
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2. Brief description of the business
Other than these they also have a line of few products which is produced upon demands or
special orders.
Paper Bowl
Paper Plate
Muffin Cup
Tulip Cup
Food Box
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3. Analysis of the existing production and/or operations strategies
Quality:
Dimension Example
Reliability Hygienic.
Comfort in handling.
Perceived Quality Base used is 100% food grade with food grade poly lamination.
Price: Business is based on custom order system depending on order size and other variables
prices vary. But overall the order cost is affordable for mid to top level potential customers.
Time: Depending on order size and other variables delivery time may vary. On the other hand,
top notch Japanese manufacturing machine, work of efficient trained employee and well-
maintained management system allows KPC industry to keep delivery time as minimum as
possible.
Flexibility: As the business runs on custom smart disposable cups & plates, KPC industries are
very much flexible in terms of ordering their items. Flexibility of KPC industries is not limited
only to custom design but also delivery time, additional feature and many more.
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Products: The firm is currently involved in producing and supplying disposable paper cups &
plates to serve drinks. The size range for cup ranges from 80ml to 350ml and for plate presently
Process Selection: The type of process KPC uses is “Batch”. Here, each day production is
considered as a batch. Each day can KPC produces 14300 paper cups and 7200 paper bowls
Volume: KPC has machineries that are able to produce high volume of finished goods. They
have modern technology that is sufficient to produce according to the clientele’s demand. They
have capacity to produce 686400 paper cups and 345600 Paper bowls annually.
Variety: KPC have 6 different product lines in the disposable paper product category which
Flexibility: The flexibility available in KPC is very high. The machinery they use is enough for
Layout Type: KPC follows the process layout. As the process type is “Batch” the functional
layout can handle varied processing requirements. The industry is situated in Purbachal, Dhaka.
As they are located vacant side of the city, they have ample space. The factory is well structured
and has enough facilities. They have an entrance gate which is covered with full security. After
entering the gate, we went straight to the admin located on the 1st floor of the facility. At the
right side they have parking for their delivery trucks. From there to little distance they have
their main administration building where they do their every works from production to storage
and all. The building has two side north side and south side. In the south side they have Admin
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and HR department. In the north side they basically have their operations and all. Before
starting the production, they send the raw materials to the quality management department
which is situated on the 1st floor. Right after the quality check they send the products on the
first floor where they have machineries department and paper products are produced over there.
After production the a few samples from each batch is sent to for durability testing. And after
that they put them on the delivery trucks and deliver through their distribution channel.
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Volume: Currently they receive regular orders from Nestle, Pepsi, BRB, United Hospital and
many more. These consumer goods requires mass volume of these paper cups that KPC
produces.. This suggests that the process is repeated and continuous/standardized and so, the
volume is high.
Variety- The product range is limited as they only make paper cups and plates. Recently they
have been trying to make square paper bowls. This suggests that they follow mass processes.
Variation- They offer different shapes and sizes for their cups according to the design preferred
by the clients. They have plates with various colors and now are trying to make square cups as
well. This suggests that they have a steady demand as people are becoming environmentally
Veracity- KPC Industries factory and the head office is always open to visit for companies that
want to have a look at the facility before ordering products and want to specify their
requirements personally. They can even inspect the sample to determine overall quality or even
Performance objectives
Current
New
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Quality- They use biodegradable material for producing their products which is now the most
required by many organizations. They try to maintain the quality by ensuring good quality raw
materials and proper employee management. This reduces mistakes but, those do happen.
Dependability- KPC is well known for its time maintenance, they deliver on time as their
processes have overall stability. They also maintain the conditioned cost at which they started
making the products. These products are durable until used and serve well as they are
biodegradable.
Flexibility- KPC has variations among their products but only has cup and plate as varieties.
They are flexible to the point of variations among cups and plates. The machine only produces
50 units per minute, which is an ideal situation. They cannot increase the production speed at
will if there is a change in order. Also, they can only produce one order at a time as they only
have 1 machine for each process. So the inventory increases and so does the cost.
Speed- Since KPC is a small company, they can only produce one order at a time. Though they
are getting orders but, if other competitors come up with the same biodegradable materials for
this business, KPC would lose market. Therefore, speed must be increased along with efficiency
of workers.
Cost- The cost of KPC’s operations is seen to be a bit higher. This is because of the raw
materials being imported. These materials are biodegradable and because of low exposure, they
have to spend more awareness. Due to their lack of speed and flexibility, the cost is high. This
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To solve this issue, they can take steps to collect those raw materials from the home country, buy
machines, train employees and find a bigger space. That way, they can produce more in less
amount of time and achieve economies of scale which will ultimately lower the cost.
KPC QC team maintains a desired level of quality in a product or service. They check various
factors that affect the quality of the product. Their Quality control team aims at prevention of
defects at the source, relies on effective feedback system and corrective action procedure. They
use the industrial management technique by means of which product of uniform acceptable
quality is manufactured. They audit the entire collection of activities which ensures that the
To improve the companies income by making the production more acceptable to the
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5. Process map
Process map of KPC is a typical small corporation mapping where activities usually start from
ordering the raw material to finished goods of the products.
Order of raw
material
Check
every
100 cups
Delivery of
finished goods
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6. Analysis of quality control issues
3 different processes are performed in which all the tasks have quality assurance tests.
Employees’ recruitment and training: Quality assurances are done manually by each employee
within their stations. Each worker have to go few weeks of training in order to do this job.
1. After print every single sheet of paper are checked for defects.
2. After cutting is done, every 100 individual work in progress materials are checked for defects.
3. They have individual 8 machines to shape the papers into paper cups which are automated.
And quality check is done by the employee on each 100 finished goods.
Forecasting based on client preference is fundamentally deciding the piece of the paper cups that
their clients habitually request the most. By figuring out which products are their clients' requests
more than different requests or the product empower them to process essential of those forehand
and by accurately anticipating the interest they can supply or deal all the more productively
making more benefit. For Example a decent number of worldwide brands, for example, Nestle,
Pepsi, Dano just as neighborhood presumed organizations like Pran, Hospital, Megna Group,
Ispahani Group and Igloo Ice cream are utilizing our products.
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On the other hand they also use simple moving average method for estimating dependent on past
information which resembles they midpoints number of ongoing real qualities refreshed as new
qualities and currently there is a demand for only 8million pieces of paper cups against the
demand of 60 million pieces of plastics cups across the country annually and for that generation
cost is higher than the plastic on the grounds that eco-friendly cup stays low it costs Tk1.50 per
piece where a comparable size plastic cup costs Tk0.90 at retail level. Once in a while it's so hard
to take orders from client by remaining that cost and these as a result of high obligation charge
and if government pull back the obligation expense for condition they can get a tremendous
8. Operational problems
Forecasting problem: KPC’s production is mainly based on orders so forecasting is hardly the
option for then. Waiting line problem: Raw material, Work in progress is maintained in
accordance to their order they have to the line distribution is not an option for them.
Managing overheads: In accordance to their orders the company runs in accordance. When they
have orders to deliver they stay open in nights.
Monitoring performance: Every employee is trained and left of their own thus resulting a week
monitoring. Capacity: They have a large capacity space which is the problem. Storage are not
well maintained.
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9. Recommendations for improvements
Optimizing Production: KPC Paper Cup Company is currently capable of producing 1 crore 50
lac cups and plates monthly but after analyzing the demand forecast, the assumption of
enhancing production is clearly visible; So, the company can improve expertise and systematic
Human Resource: Quality human resource is a valuable asset to the company. So by hiring
expert employees and workers is essential. Though KPC already has a good team of workers and
employees running all the operation but more efficient in production and IT expert will be
required for the company’s better performance. This will take the company into its benchmark
goods, higher inventory cost and dissatisfaction towards the clients, As KPC is only focused on
their business of paper cup and plates it will be better for them to select an expert third party
distribution channel.
Promotion: As it is a B2B product, so the intense promotion among mass people is not required.
But it is important for KPC to convey the message regarding their products, offers, and facilities
towards their potential clients. As the business has an upper hand due to their 100% eco-friendly
product, this could be their value proposition and CSR to attract clients.
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Optimizing IT: A good support in information technology is a high requirement for KPC. They
have the transactions, orders, raw materials, salaries and wages and so on. So, an efficient IT
system can do all of these at once. Manual management can often lead to mismanagement and
mistakes which can cause great loss. Though the expenditure of setting up an advanced IT
system is high, but once it is setup it will provide service for a long run.
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Appendix:
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