COURSE: OPERATIONS MANAGEMENT

PRESENTED TO: MR. SALMAN EHSAN

2011 MBA-II/SECTION B

Brighto Paints

Asad Ali
Ahmed Jawad
Hamza Basharat
Khurrum Manzoor
Rabiya Wahid
Sidra Ali
 Brighto Paints

Table of Contents
Company Profile ............................................................................................................................. 2

Organizational Structure & Design ................................................................................................. 3

Overview of Visits .......................................................................................................................... 3

Supply of Materials ..................................................................................................................... 3

Production Facility ...................................................................................................................... 3

Storage Facility ........................................................................................................................... 4

Delivery Process ......................................................................................................................... 4

Process Flow Design ....................................................................................................................... 5

Paint Production Process in Detail .............................................................................................. 5

Process Flow Chart ......................................................................................................................... 6

Oil Based Paint Process .............................................................................................................. 6

Water Based Paints Process ........................................................................................................ 7

Machinery & Equipment................................................................................................................. 8

Quality Control Laboratory............................................................................................................. 9

Research & Development Laboratory ............................................................................................ 9

Work Force Management ............................................................................................................. 10

Hiring ........................................................................................................................................ 10

Training ..................................................................................................................................... 10

Compensation & Performance Appraisal ................................................................................. 10

Evaluation ..................................................................................................................................... 11

Recommendations ......................................................................................................................... 11

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 Brighto Paints

Company Profile
Brighto Paints (pvt) limited is one of the largest manufacturers of a wide variety of decorative
paints in Pakistan. Founded by Mr. Riaz Ahmed Sikka, Brighto Paints has been operating since
1973. It has always been a self-financed company by its founder and his four sons, and never
ventured for any loan up to this date. Originally it was just a small shop located in Shahdrah,
Lahore. Mr. Riaz believed that the business must remain within the Khawaja family, therefore,
when the business started to expand, one of the eldest sons, Mr. Ejaz Ahmed Sikka, succeeded
his father after his retirement as chairman of the company in 1979. A humble man by nature, Mr.
Ejaz bent upon the task of organizing the structure of the company and the working hierarchy by
offering positions to his other younger brothers, Mr. Khurram as Director of Production
Department and Mr. Atif as Director of Sales and Marketing department, who joined the
company in 1975. One of the brothers Mr. Naeem-ud-din did not stay in his father's business and
opened up a separate business for himself.

Brighto Paints (Pvt) Ltd was registered as a private limited firm in the year of 2000. It has total
number of employees of 300, of which 200 were employed in Production & Operation
department. The factory is located at Raiwind road, opposite Mumtaz hospital at 8 km from
Thokar Niaz Baig. Brighto paints (pvt) limited are certified by ISO 9001 which proves its quality
beyond doubts. Over 35 years. Brighto paints (pvt) limited, has grown significantly in Pakistan
and today its stands known as “The Paint of 21st Century.

Products

 Brighto Super Emulsion

 Brighto All Weather Exterior Coating (Acrylic Enriched)
 Brighto Red Oxide
 Brighto Wall Emulsion
 Brighto Excellent Plastic Emulsion
 Brighto Matt Finish
 Brighto Under Coat
 Brighto Super Sealer
 Brighto Super Filler
 Brighto All Purpose Synthetic Enamel (with Toners)
 Brighto Aluminium Finish
 Brighto Metallic Enamel
 Brighto Clear Varnish
 Brighto Grey Oil Putty

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 Brighto Paints

Organizational Structure & Design

The organizational Structure of Brighto Paints

CEO

Sales &
Mechanical Production Accounts Administration IT
Marketing

Raw Material Token Operations Finished Goods

Overview of Supply Chain

Supply of Materials
Brighto receives its raw materials for paint manufacturing from local and international suppliers.
According to the management of Brighto, the ratio between the local and international suppliers
is of 50:50. There is not any specific supplier which means that the company always tries to have
its raw materials supplied from the best and cost effective resources. Some raw materials get
delivered daily, some weekly and others monthly. There are separate storage places for raw
materials coming for oil based paints and water based paints. There are separate workers for both
oil based and water based paints who check the supplies, weigh them when it arrives, store them
appropriately and weigh them again when the raw material need to be given to manufacturing
plant for processing. There is no outsourcing done since the whole process moves in one flow
and outsourcing the processing of raw materials would just result in increased costs and it is not
feasible for the company.

Production Facility
At this facility, there were two plants, oil-based and water based, where huge tanks were used for
mixing the ingredients of paints and automatic filling them in tins and buckets of different
SKU's. They were packed with the help of lifters. The thing that differentiated these two types of

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 Brighto Paints

paints was that in water based paints, it had a slightly different colour of chalky white material.
Less labour was required for this process. The wasted material was also re-used.

Storage Facility
The area for this facility was 185/75 square feet. It was a huge place filled with boxes and
cylinders of paints. We met Mr. Imran Illias who was the store supervisor for the noon shift. He
told us that currently 19 workers were working in the store, which included the shifting of
merchandise i.e. paints from the store into the trucks. Two trucks were stationed just outside the
store gate, and they were loading the paints to deliver them to retailers inside Lahore. He told us
that company had its own four trucks for inside Lahore movement of goods, whereas, for other
cities and areas, a vendor was employed for outsourcing. We found out that the loss of paints in
case of spillage was recycled and re-used. Everyday five trucks, each having a capacity of 25
tons, were loaded and sent to different retailers inside and outside Lahore, depending on the
demand from retailers.

Delivery Process
Once the final product, that is paint, is ready to be shipped off from the storage, the storage
supervisor first looks for an order sheet (purchase order), which is send by Territory sales
manager, with the appropriate account code to identify the customer order. Based on that order
sheet, a delivery challan is issued by storage supervisor. In case of small orders (within city), two
or more delivery challans for two different retailers are gathered and together their merchandise
is loaded onto small Mazda trucks, which reaches retailers who had requested for the
merchandise. Delivery challan is cross checked with stock placed on the trucks and signed
receiving is given by the retailer to the SPO, who usually accompanies trucks. In case of big
orders (usually outside city), the merchandise is loaded on distributor trucks and there they take
the responsibility for delivering the merchandise to retailers. In both the cases mentioned, a gate
pass is issued based on delivery challan, which specifies the details of the amount of
merchandise to be delivered and their respective codes. In case of damage to merchandise, if the
paint leaks from its package then the company is liable for the damage and its pays accordingly,
otherwise vendor trucks are responsible if no damage in packaging is detected during the
unloading of merchandise. Currently, Brighto has one single vendor for vehicles because of
expensive transportation costs. Their delivery is outsourced and no salesperson of the company
accompanies those trucks outside the city. Brighto paints give 35% of their merchandise to
distributors and 65% to retailers.

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 Brighto Paints

Process Flow Design

There are several processes in the production of all forms of paints are as follows:

Storage

Grinding

Mixing

Quality Control

Filling

Packing

Finished Goods Storage

Paint Production Process in Detail

The current Process at Brighto Paints is a “batch shop” as there is a relatively stable line of
products each of which is produced in periodic batches. Modern paint manufacturing involves a
blending process to disperse pigment into a vehicle system. The vehicle system, typically a resin
or a varnish type material, is first charged into a mill with thinner and grinding aids. Pigments
and extenders are added. The mill is then operated until the pigment particles are broken down
and uniformly dispersed to create a grind paste. The grind paste is extended with additional
resins and thinner and dropped into a thin-down tank. There, other materials are added to the
tank to make the finished product. At this point, a sample of the material is brought into the
quality control laboratory and a number of tests are conducted to compare the batch versus the
standard parameters it is designed to meet. Trained technicians evaluate the results and then
make adjustments for color matching and other characteristics such as viscosity and gloss. In

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 Brighto Paints

addition to the normal adjustments made to batches, quality checks are performed throughout the
manufacturing cycle.

There are two basic Types of Product lines

1. Water Based Paints

2. Oil Based Paints
All the processes listed above in the production of paints are both common for water based paint
facility and oil based paint facility.

Process Flow Chart

Oil Based Paint Process

Storage of Raw Material

FIFO inventory evaluation Method 15-20 minutes to Weigh & lift to the grinder 3 workers & one supervisor

Grinding
It takes 90 minutes to grind 300 Galons (capacity - 4 Red, Green, Blue & Yellow Pigments
It has two workers
machines)

Mixing

one supervisor , 3 workers takes one hour for 800 gallons capacity 800 gallons & 8 machines (4 backup)

Lab checks

2 workers 15 minutes process time 3 hours 45 minutes drying (matching colours) time

Tagging & assembling of cans

10 minutes same labour of filling assembles and tags the empty cans of paints

Filling and packing

Filling, sealing, carton and pilot (5-men job) one supervisor & 6 workers 25 cans per minute are packed

Cleaning

15 minutes if same pigment is to be processed 45 minutes if different pigment is to be processed

Storage in Finished Goods Inventory

Shifted via lifter worker is the same pilot lifter in Filling process Process time 1 minute

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 Brighto Paints

Water Based Paints Process

Storage of Raw Material

FIFO inventory evaluation Method 45 minutes to Weigh & lift to the grinder 7 workers & one Floor manager

Grinding & mixing

It takes 2 hours to process 1100 galons of paint It has one floor manager, 7 workers Red, Green, Blue, white & Yellow Pigments

Lab checks
2 workers 15 minutes process time

Tagging & assembling of cans

10 minutes and same workers of packing process are involved in the process

Filling and packing

Filling, sealing, carton and pilot (5- 1 hour 30 minutes process packing Red, Green, Blue, white & Yellow
It has one floor manager, 7 workers
men job) time Pigments seperate machines

Cleaning
15 minutes if same pigment is to be processed 45 minutes if different pigment is to be processed

Storage in Finished Goods Inventory

Shifted via lifter worker is the same pilot lifter in Filling process Process time 1 minute

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 Brighto Paints

Machinery & Equipment

There are several machines and equipment which are used both in the oil based and water based
paint facility are stated as follows.

S. No. Title Quantity Capacity

1 Weighing Machine (Small + Large) 10 + 4 Irrelevant

2 Microscopes 4 Irrelevant

3 Centrifuges 2 Irrelevant

4 Dyers 3 Irrelevant

5 Viscometers 6 Irrelevant

6 Colour Matching 10 Irrelevant

7 Crypto meters 8 Irrelevant

8 PH Meters 6 Irrelevant

9 Owen 4 Irrelevant

10 Scrubs Testers 6 Irrelevant

11 Incubator 4 Irrelevant

12 Applicators 4 Irrelevant

13 Mixing Machines 7 800-600 Gallons

14 Grinding Machines 11 1400-400 Gallons

15 Filling Machines 12 Various Sizes

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 Brighto Paints

Quality Control Laboratory

There is a quality control laboratory in between the oil based and the water based plant which is
responsible for measuring and checking the standard of paint that is being produced at the
facility. There are two people working in the lab in one shift and two people in the second shift.
The Lab in charge takes the sample of paint when it is ready before filling and packing. For oil
based it takes around 4 hours for the colours to match and clear the product for filling while in
water based it takes about 15 minutes. The standards set by the R&D department are that the
RPM is set at 125 and PH values of should be in between 7-9. The further production is seized
until the quality control department checks and approves the quality of paint which is taken as a
sample from the total batch of paint produced.

Research & Development Laboratory

The R&D department at Brighto Paints mainly deals in four basic areas namely:

1. New Product Development

2. Setting Quality Standards
3. Competitor Quality & Product Analysis
4. Random Quality Control Checks
Quality control and R&D checks at various steps of production in the plant

After R&D
Before
Raw Loading Mixing surprise
Delivering
Material into (both checks
to
Check Machines water & Oil after
customers
based) packing

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 Brighto Paints

The R&D takes the market analysis input from the Marketing and sales department and study the
current trends and demands of the market. They use the data to make such product which are
desired by the customer.

Work Force Management

Hiring

The Hiring Process is more of a conventional and traditional approach is followed to hire new
staff. There are not as such formal procedures followed to hire individuals but still the manager
of concerned department takes the interview and the CEO consults with the manager to make the
compensation package. Most of the Labour comes from Shahdra, as it was the place where the
old plant was situated and the people working in the company go as far as 3 generations and have
been in the company for over 35 years. The new employee or labour force is hired usually
through referrals and those who are relatives of the current working labour or employees are
preferred. Brighto is not an equal opportunity employer as there is not a single woman in the
company.

Training

There is a regular semi-annual training program for labour to avoid the work hazards and proper
training is given concerning the fire extinguishing and avoiding fire causing events. For any new
employee, he is supposed to work under the supervisor for a month and work with the staff for 2
more months before he is given the actual task or assigned an actual job. So this results in on the
job training and job rotation also takes place which gives him experience in working in different
departments of the company.

Compensation & Performance Appraisal

No formal performance appraisal system is followed but yet people are compensated by giving
bonuses and annual raises on the discretion of the CEO’s decision which is influenced by the
formal meeting that takes place every 2 months. This meeting is done with the managers and
supervisors at the plant to keep the operations as smooth as possible and the labour being the
most important part of it are discussed and the future compensation and performance appraisal is
done. The CEO is responsible to decide upon the increment in base salaries and other benefits
which the company may or may not be giving to its employees and labour in the year and holds
the right to change them at his will. Senior managers who mostly are the relatives of the owner
or his close friends are compensated on the amount of sales made by the company plus their base
salary decided in the group meeting of senior management.

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 Brighto Paints

Evaluation
Production process at Brighto is a not a lengthy process yet its technical and requires expertise.
Without proper training it’s difficult to perform any task that’s why company prefers intensive
on the job training. Production operation at Brighto is divided into two sub parts one is water
based and second is oil based. Water based production is easy and takes less time while oil based
is not that simple and takes more time than water based production. All the machinery used in
production is locally made so it is easily available and cheap. This makes replacement cost very
low. If we look at the overall capacity of the plant we found that grinding is the major bottle neck
for oil based manufacturing. In oil based processing grinding takes 4.5 hours to grind 800 gallons
of paint material while mixing this takes 1 hour. So for a continuous production---peak season---
mixing has to wait for almost 3 hours for the next batch to grind. Moreover mixing has a double
capacity i.e. for every one grinding machine there are two mixing machines.

Quality checking lab also takes a very long time to test paint. At present no machines are used to
dry pain to it takes almost 4 hrs to dry single coat of paint and quality control department has to
apply 4 coats so for testing a whole day is needed. This can b reduces by using machine dryers.

Staff at bright paint is not highly educated as company has ‘seith culture’ so they don’t prefer
highly educated employees because they charge high salary. At present company has no
chemical engineer. Company should add educated staff as it will increase efficiency of the
system and it might increase R&D progress rate. Brighto should have at least a plant manager
with management education background.

Recommendations
As the company will grow in future years, it is necessary for the company to remove its
bottleneck and make it as much productive as possible. There is only one grinding machine
available in oil based processing plant which takes 4.5 hrs. if company increases the capacity of
grinding by installing more machines then it can meet the increasing demand of future with more
efficiency and effectiveness.

Quality checking laboratory is not very efficient and prompt in checking the quality of paint
while it’s moving through the whole process especially for the oil based paint. Company should
install some automated procedure of quality checking rather than manual checking which takes
more than 4 hours since oil based paint doesn’t dry very quickly. Even in 4 hours oil based paint
would not dry completely especially in winter season so this whole process of quality check
hinders the flow of manufacturing process.

Working conditions and lack of appropriate staff are also one of the weaknesses in Brighto that
need to be corrected. Working conditions are very inadequate for the worker. They are constantly

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 Brighto Paints

exposed to harmful chemicals and there are no protective measures to ensure their health and
safety. This is one of the reasons of the high turnover rate at Brighto. New employees have a
hard time adjusting in such difficult working conditions. Most of the staff employed at Brighto is
uneducated or below matriculation. By employing educated and trained individuals Brighto can
increase its productivity further. Workers are promoted to higher managerial positions without
any adequate managerial training. Because of this fact, they take an extra amount of time in
learning how to manage their team and be productive in a short span of time without making
massive errors in production.

The strategy for coming years must be to improve operations in all spheres of activity. Brighto
needs to invest heavily in staff development and infrastructure. To support its ambitious
marketing and sales thrust, it needs to invest in the new state-of-the-art manufacturing facility.
These improvements will provide Brighto Paints an additional edge over competition, and an
enhanced ability to service its valued customers

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