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MGT314 Report On Operational Plan For SPORSHO Hand-Wash
MGT314 Report On Operational Plan For SPORSHO Hand-Wash
Submitted To
Mr. Mofassel Hossain
Lecturer, Department of Management
North South University
Submitted By
Group 6
Section 3
Name ID
TazrySarker 1611378030
Md. Farhad Hossain 1721607630
NafishaTafannum 1811087030
BoishakhiSuhi 1912279630
Md. Shahriar Khan Tushar 1912442030
Rakibul Islam Rocky 1912534030
NiloySaha 1913083630
Acknowledgement
Mr. Mofassel Hossain, our faculty, is always to be thanked on behalf of the entire team for his
assistance during the semester and for instructing us the fundamental essentials of supply chain
management.We appreciate the consulting hours which sir generously provided us, and we
expect that our contributions are demonstrated throughout this report.
Executive Summery
The whole project is embarked on a latest hand-wash brand SPORSHO, which has been
designed to address the wellbeing concerns of people who have been constantly concerned
regarding their wellbeing and hygiene.Washing our hands is still our initial concern these
days.We attempted to transform this practice into a long-term investment strategy.So, this is
where SPORSHO stepped in.The company strives to become the best on the market by offering
high-quality hand-wash in some kind of a variety of aromas and a proprietary hygiene
technique.Seasonal scents will be included, as well as floral fragrance.Customers would be able
to choose from a comprehensive variety of options.This would continue to boost the company's
brand success.Our versatility, we assume, would be our strategic source of competitive
advantage.Our share of the market will grow as a result of our positioning and product.The
whole report also includes comprehensive documentation concerning our forecast and our
strategy for achieving those goals.Besides that, our growth potential will be entirely dependent
on our projections and would be primarily perishable with a lengthy strategy.SPORSHO's value
assurance squad will be carefully selected because we consider our quality control ought to be
superior to that of competitors.SPORSHO's uniqueness shines through each and every seasoning
and essence, ensuring its efficiency.
Overview of the Business
Flexibility:
Our product is a lot more adaptable.The consumer will be able to use it as needed
because we are providing a raw powder to make hand wash at home.There will be less
opportunities to waste.
Location:
For the time being, we'll focus on a few specific areas as our target market
locations.However, we will undoubtedly extend our business areas.And, hopefully, we'll
be able to do that soon because we're more cost-effective and environmentally sustainable
than the competition.We will try to make our product accessible in every corner of our
country as soon as possible, from city to village.
Limitation
We could not even stay with the team offline due to the disease outbreak.As a result, working on
this project was indeed a unique adventure for everyone.Aside from that, our supplementary
analysis was confined to publications, and we have been unable to explore individual retail
outlets or production facilities that may have assisted us throughout the plan.
Operational Plan
Strategy and Competitiveness
Strategies:
A strategy is an overall plan to accomplish one or more long-term or overall goals under
conditions of uncertainty. It contributes to a company's long-term success. A good strategy is
also advantageous to a new company. Many factors lead to process performance and a
company's ability to outperform its rivals. The most important strategic components are price,
performance, flexibility, brand management, and place. These characteristics are essential for
gaining a competitive advantage. Many of these strategies would be applied in our company's
operations. First of all, since we use a longer-lasting material that lasts five times longer than any
other hand-wash on the market, that's why we are the most affordable choice. Secondly, it's
tough to maintain a high level of quality, but it pays off in the long run. Consumer’s value high-
quality commodities. So, will always make sure that our product is of the highest standard. We
will use the finest materials available to achieve the optimal quality standard. Thirdly, since we
are providing raw powder to make hand wash at home, the user will be able to use it as needed.
Those things will make our product a lot more adaptable. Fourthly, to make it easy to use, we'll
keep the product design simple. Customers will also save money on hand soap for our product
design. Lastly, our target market locations will be targeted to a few specific areas for the time
being. Nevertheless, our business sectors will expand inevitably. And, ideally, we'll be able to do
that soon because we're less expensive and more environmentally friendly than the market. We
will work as efficiently as possible to get our product to every corner of our country.
Competitiveness:
Competition is a core factor in business. Competitive advantages are what makes a company
ahead of its competitors who are providing similar products or services.
Our price would be marginally higher than standard hand-wash on the market, which may
look like a disadvantage for us in competition with others. However, we are the cheapest
option because we have a longer-lasting material that will last five times longer than any
other hand-wash on the market. So, we are hoping that this will keep us ahead in the
competition.
Quality plays an essential role in the run of the competition. We will try our level best to
keep the quality level at the top peak. We will use the best materials to meet the quality
we are looking for. This might cost us a little bit more than others, but we will not
compromise about quality. And we hope this will pay off. People will surely value the
quality.
When it comes to flexibility, we're way more flexible than others. Our product is
different but more adaptable than others. Whereas usually, all the other hand-wash comes
in liquid form and a bottle to, we are providing raw powder to make hand-wash as per
consumer needs. Which we think will give us a competitive advantage.
We will keep the product design straightforward than our competitors. The reason behind
our simple product design is to reduce unnecessary use/waste of hand-wash. As already
mentioned, our hand-wash is in powder form. So, consumers can use it as per need. There
will be no risk of children's wasting the whole bottle of hand-wash at a time.
People are more concerned about their health and environment now. We will use eco-
friendly material which will not harm our environment as well as the user.
The health-conscious people are also going to like our product than any other air cooler
of any other company. This is because we all know the electric air cooler plays a terrible
impact on our health. But our product doesn't have any side effects.
Location always plays an essential role in the run of the competition. A good place can
reduce transportation and many other costs.
The market is full of competitors. But we believe we can beat them with our quality. Quality can
make a difference between our competitors and us. All we need now is to maintain our standard
and move forward.
Demand Forecasting:
Purpose of Forecasting: We are doing the demand forecasting to know the estimated
production unit for SPORSHO handwash throughout a year.
Time Horizon: Forecasting can be done for one year to 5 years and more than 5 years.
But for the long-term forecast, the accuracy rate becomes lower. That is why we are
doing a forecast for only 1 year along with our seasonal growth and decline.
Obtaining and Analyzing Data: For startup businesses, there always have a lacking of
previous data. So, this is going to be tough for getting data. Though we used search
engines for gathering some data and the sources are cited in the reference section. We
will apply a qualitative method to precisely judge our data for the forecasting of
SPORSHO handwash. We are hoping to make the best forecast for our one operation
year along with this all data and method.
Forecasting Technic: As we are a newcomer to the market, we don't have that much
previous data about this current market. So, for doing forecasting, we will use the
qualitative method. For some general information like the population and the market
growth of the handwash sector, we will use accurate data by using the search engine,
google.
The Forecast: Based on an article of Dhaka Tribune, about 40% of people in Bangladesh
know about handwashing with water and soap or any handwash. (Dhaka Tribune, 2020).
Bangladesh’s current population is 166,051,909, based on that, we can estimate that our
market size stands at 166,051,909 × 40% = 66,420,763 people (Worldometer, 2021). This
value is not to be taken literally, as it assumes that a family needs a minimum tow
handwash packets in a month. We have conducted a consumer survey on 30 people to
understand how many handwash a family buys in a year.
Here 16th and 18th values, 10 and 45, is a clear outline and will be excluded from the sample
size. Now our new sample size is 28, and our sample data is
15 23 17 20 20 29 24 18 19 26 21 22 18 28 23 30 19 20
18 15 17 22 15 28 18 27 18 19
Accurate: How accurate our forecast is; it cannot be determined because we have not
been provided any actual data to compare with. So, this can be measured only when the
project/work starts and we will adjust our techniques to provide the best accuracy we can.
Meaningful Units: Our forecast will count the forecast in terms of units of handwash.
Reliability: The forecast will fix based on the realistic approach to the real-expected
market values and statistics as possible. Through this, it can be a reliable approximation
of future demand.
Written: The forecast will be in written form to preserve the result and it should be
available for each manager and coordinator.
Easy to Read: The forecast must be easy to read and understand. All the sectors, points
and analysis will be displayed simply and make the chart graphics familiar and
understandable.
Capacity Planning:
As we are a manufacturing company, we will depend on the forecast of demand. This will
explain the need for our product in the market, and we will produce according to that demand.
As we are a new company, currently we won't be having mass production at a time. But we will
surely increase the production level as demand increases. Then we will go for a long-term plan.
Machine and Technology: Though we are a manufacturing company, we have to import
our base machinery. But the design of the product will be done by us according to our
plan. We will use the best technology to print our logo and designs. We will use social
media for marketing our product. We will build a website which will carry information
about us and our product. We will make sure we use the best machinery and technology
to get the best results to differentiate us from others.
Space and Time: We have a plan to expand our business at every corner of our country.
But for the time being, now we will focus on some specific target areas. We will start
operating from our factory at saver and a corporate office at Mirpur. All the corporate and
local deals regarding sales and retail will be done from our head office. After six months,
we have a plan to open a warehouse outside Dhaka. We will maintain the proper
humidity needed to keep our product and materials safe. With the best quality, eco-
friendly, and environmentally sustainable development, we hope to reach our nearest
target very soon.
Human Factor: To ensure the best quality, we will recruit skilled people for every
department of our company. Skill is highly needed at the management team since we are
just beginning. Things will be tough, and we don't want to take any risk. If things aren't
managed properly, we can be in problem. Our IT team will make the best design for us.
With skilled workers and management, we hope things will not be complicated for us.
Uses of digital machinery will already make it easier for our workers.
Process Selection and Facility Layout:
Manufacturing Process:
For a manufacturing company, process selection is one of the most important tasks. Process
selection plays a key role because everything is decided here. How the production will run, time,
schedule, and everything is decided in a process selection. Usually, companies use the forecast to
figure out the volume they need to produce then select the process. But as we are new and we
don't, we will make that according to our capability of machinery, workers and raw material for
the beginning. We are producing hand-wash, and we don't have anyplan to add any new variation
soon. So, keeping those things in mind, we will select the "Repetitive process" for now. We will
increase the volume of production as the demand increases.
Manufacturing Process Diagram:
At First, we will collect raw materials like SLES, perfume, pearl powder, whitener salt to
make the hand-wash powder.
Then, we will use organic ingredients like neem and aloe vera, which will enrich the
quality of our hand-wash.
Using our digital machinery, we will mix every material according to the exact volume.
We will check the alkali level before we finalize the raw hand-wash for packaging.
We will maintain the alkali level so that our hand-wash doesn't cause any harm to the
skin even if people use it on their face.
Once we are satisfied with the quality, we will give the green signal to our production
team for the following process.
Our designing team will prepare the best design for the jar and the packet.
We will use eco-friendly fresh plastic for making the jar and packet.
We will also reuse plastic waste to reduce the trash from nature.
Lastly, packaging with eco-friendly bags and labeling with our brand name.
Facility Layout:
Facility layout is the arrangement of the different manufacturing processes according to an
appropriate manner. It helps a company to reach its desired target. The selection of an optimum
layout makes a significant impact on cost and output. In the long run, the necessity of an
appropriate layout is essential for a manufacturing company.
There are four different facility layouts generally used for any production –
1. Product Layout
2. Process Layout
3. Fixed-Position Layout
4. Combination Layout
From these models above, we will select “Product Layout” for our company as we select
‘Repetitive Process” for our production. In this, there will be raw materials at the beginning, and
at the end, there will be packed goods as output. The process starts with collecting raw materials.
Machinery is placed according to the sequence. Production begins by Putting those materials into
the first machine, and in the end, it comes out as a fully packed product.
A practical facility layout has some objectives. It
Minimize material handling
Elimination of bottlenecks
Shorter production cycles
Reduce production delays
Improve Quality control
Makes efficient utilization of labor
Improve employee morale
We hope to meet these objectives using this concept of facility layout. These will help us reduce
the production cost, and we will be able to sell our product at the minimal rate possible.
To reduce our manufacturing costs, we must strategically monitor our staff and
infrastructure and ensure that we have the finest skilled employees and the safest
appliances.
We would ensure certain that our goods are well-packaged to avoid harm throughout
shipping and therefore. Since manufacturing in Bangladesh is made with plastic jars, we
can use conventional wrappings to minimize waste while also reducing freight harm by a
large range.
In an era of environment friendly products, slightly elevated goods are heavily prized. As a
result, we have to have a skilled labor as well as elevated resources to make sure that our
consumers receive the finest goods available. Anything other than that, our company will suffer
damage as a result of quality defects, along with maintenance costs as obligations, and
profitability will inevitably decline. As a result, our relative worth will be affected.
Inventory Management:
Inventory Categories:
Raw Material:To make the Hand Wash, we used a variety of raw materials. The following are
some of the required materials: cocamide dea surfactant, anionic surfactant, dye, fragrance and
Glycerin is used to prevent dryness.
Work in Process:Sporsho …………………………………………???????
Finished Goods: Powder form of hand wash is considered as the finished good of Sporsho Hand
Wash. There are several types of categories like as antibacterial, Skin friendly and Different
Flavor of handwash.
Pipeline Inventory: Sporsho does not yet have its own transport system because it is a relatively
new manufacturing company in the industry. When they go to direct procurement to buy the
supplies, though, they rent vehicles for the day. Sporsho also pay the vendors' distribution and
transportation costs while Sporsho buy from the dealers. In this transit Raw Material is used as
pipeline inventory.
Inventory Counting System:
We are not maintaining inventory records on a daily basis. We would use the periodic inventory
system to count our inventories because we intend to purchase and sell finished products and raw
materials on either a weekly or monthly basis. Besides, we don't typically have large quantities
of inventory on hand at a certain time. Based on the rise in profitability, we can use either the
FIFO or LIFO methods.
Lead Time Calculation:
For the production process, Sporsho keeps raw materials on stock for 60 days. We normally
place new raw material orders 14 days before they run out.
Economic Order Quantity (EOQ):
The key ingredient required to make our Hand wash is cocamide dea surfactant and an anionic
surfactant. We will buy these key materials from our regular supplier. We'll use the Economic
Order quantity model because we're not making the supply in-house. From our forecasting we
assumed that
RFID:
We'll be using RFID tag to maintain record of things. We will decrease workplace fraud and
petty theft issues by undertaking this step for using RFID. Furthermore, it would allow us having
better brief regarding current assets and assistance in the sourcing of manufactured goods.
Environmental Friendliness:
SPORSHO is a hand-washing brand that was created to resolve the personal hygiene necessities
of people.Our major concern has always been handwashing.Our hand-wash will be in the form of
a powder that can be combined with water and then applied.The package and container will be
made by us as well.Environmentally friendly products will be used to make recycled containers
and packets.We would use goods that are both healthy for customers and the environment.We
will use recycled materials, which will reduce plastic waste.
To begin with, the organic materials used to produce these cleansers develop them much simpler
to dump of, as the organic proteins and nutrients dissolve away fast as they pass through the
wash basin, avoiding water contamination.No contaminants or herbicides and fungicides are
used in the production of the materials that should go into natural washing powder, minimizing
soil pollution that could endanger potential plants or livestock. Using greener techniques reduces
degradation in our entities and the environment, as well as limiting the impact on ozone
depletion and global environmental issues by minimizing smog-causing synthetic substances.
Many green products even come in recycled content, which helps to reduce contamination.As
consumer demand for green goods grows, more businesses are forced to follow eco sustainable
standards when delivering green products.As a result, there is less toxic pollution in the water
and air, resulting in a better climate for plants and animals.Furthermore, we are able to enjoy a
healthier environment.
3R’s Application:
Reduce:
It's quite well known; the above industry generates a significant amount of trash due to its
manufacturing itself.Apart from choosing eco safe manufacturing for the goods itself, we will
first concentrate on yet other aspect of waste reduction: manufacturing emissions.We would
implement a brand-new concept of using recycled packaging rather than just toxic plastic jars.
Reuse:
Individuals are inclined to have to get latest products which are in trend now because new trends
shift so rapidly.As a result, they therefore keep the already bought item in their possession and
rarely use it, or they discard it.To address, thismatters we will implement an ecologically
responsible scheme named "Nature's Touch" that will accept bottles and packets from customers
who wish to dispose of them.
Recycle:
To make a handwash bottle, we keep two things in mind that the jars and packets of the product
are totally made from environmentally friendly materials. This will be safe for both consumers
and nature equally. So, we use recyclable plastic material to make jars and products, so that we
can collect and recycle the used bottles of people, we can collect and recycle them. Also, we will
collect much plastic waste from the environment that can be used as raw material. In this way,
environmental pollution can be minimized.
(Powder Packet) (Powder turns into Liquid)
Conclusion:
Hand-washing soap is a widely available commodity.However, our hand-wash, SPORSHO, will
be the pioneer on the marketplace to be available in powder form with additional features.The
planet is currently experiencing a difficult time due to the covid-19 pandemic.Hand washing has
evolved into more than just a ritual to do before feeding.Handwashing has become increasingly
common around the world.Many unidentified companies produce hand wash without following
safety precautions or using additives that are hazardous to our health.Maintaining the
circumstance and all of these factors into account, we agreed to step in and use our original
thoughts to convert this activity into a long-term investment program.We are the first company
on the industry that can offer basic so many services at such a low cost.We've chosen sustainable
materials to produce a skin-friendly hand wash.In order to assure that every household in our
country uses hand-wash, we driven prices low and added long-term available services, making it
ultimately less than the cost.
We choose to aspire to creating a stronger, healthier, and safer world for the communities around
each other, by becoming the most reliable and consistent and progressive cleaning and sanitizing
product manufacturer in our country, and thus become the most serviceable and visionary
cleaning and sanitizing product manufacturer in our area.We are dedicated to making the planet a
safer and more healthy environment.