MEAGAL STELPLAST CASE ANALYSIS

SANDIP KUMAR I EPGP-13C- 095 1

 The Dilemma in Meagan stelplast
1. Whether they should focus in supplying horns to OEM as they provided a steady order for the
whole year or continue with the replacement market .
2. Whether they should expand factory in the available space within the premise or set up a
dedicated facility for OEM s supply because it requires government accreditation and
certificate to sell products to OEMs.

MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095

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 The Current Practice
1. Due to uneven demand followed made to order
2. Old workers were on monthly pay roll while the new worker were paid on piece rate basis
3. Inventory on an average was maintained for 3000 horns. When the inventory fell below 500,
order of 3000 horns were placed, while copper was maintained as per requirements.
4. They offered warranty for 3 Months
5. For testing there were 2 workers while other 10 were divided on 2 work benches on rotation
6. First testing was done soon after assembling and the final one after 4 hrs
7. Practiced manual maintenance of orders, invoices, inventory and BOM

MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095

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•
Issues
Absence of Demand & forecasting
Manpower panning is missing
Material mismanagement, cluttered
and unorganized
Inconsistency in quality
No inventory management
Resistance in using new technology
MSL CASE ANALYSIS
Observations
Descriptions
The process is unorganized and not well laid out. Production is based on
customer orders.
Utilization is not optimal . Everybody does everything
The assembly parts were haphazardly laid out. This obviously leads to
poor material management and pilferage
Consistency in the quality of spares delivered by suppliers was
highlighted as suspect.
Though there are no such space constraints and a healthy demand for
horns, inventory is not being effectively used to cater to this demand
the workers are hesitant to change and are not very flexible. A lot of
improvement can be achieved, if they are made to see the other side
of the coin and encouraged to adopt change
SANDIP KUMAR I EPGP-13C-095
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Bottleneck Housing Assembly and Packaging (5 min)

Batch Size 30 Units

Working Time ( per day) 9 hr

Breaks: 30 min (Lunch), 20 min (2 tea breaks)

Effective Production time/Day 490

Final Testing performed 4 hours (240 min) after the unit is test ready

Productive time of final test machine 250

MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095

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 Batch Process Calculations
Descriptions Time Remarks
• It takes 7 minutes before final assembly starts
17.00 and 10 minutes for final assembly + stud fitting +
Cycle time Initial testing

First batch comes out after packaging: 264.00 • Time till initial testing + waiting time + final
testing + packaging
Second batch: 281.00 • First batch time + cycle time
Total batches in a day: 14.29 • [(effective production time-first batch
time)/cycle time] +1
Total no. of batches: 371.65 • 26 days * total batches in a day
Total unit production (workbench1): 11,149.41 • Total no. of batches * Batch size
Total unit production (workbench2): 11,149.41 • Total no. of batches * Batch size
Total production capacity: 22,298.82 • workbench 1 + workbench 2
Capacity Utilization: 67% • 15000/total production capacity

MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095

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 Assembly line process
Descriptions Time Remarks

Cycle time: 5.00 • It takes 5 minutes for final assembly &

packaging

First batch comes out after packaging: 264.00 • Time till initial testing + waiting time +
final testing + packaging
Second batch: 259.00 • First batch time + cycle time

Total batches in a day 46.20 • [(effective production time-first batch

time)/cycle time] +1
Total no. of batches: 1,201.20 • 26 days * total batches in a day
Total unit production (workbench1): 36,036.00 • Total no. of batches * Batch size

Total unit production (workbench2): 38,918.88 • Total no. of batches * Batch size * (1 +
efficiency difference)
Total production capacity: 74,954.88 • workbench 1 + workbench 2
Capacity Utilization: 20% • 15000/total production capacity

MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095

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 Conclusions
• Housing Assembly & Packaging is the point of bottle neck.
• Market demand should be identified first for OEM and replacement market. If the demand is higher
than the capacity of the plant running batch process then it should be shifted to assembly line
process to increase its capacity
• Standardization in wok needs to be brought in, while manual work should be reduced. Pneumatic
tightening machine should be used to assemble the horns
• For expansion new works should be hired on per piece basis.
• Instead of rotation of workforce, it is suggested that one person should be allotted fixed work that
would increase the efficiency  

MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095

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 Recommendations:
• T​ he layout can be arranged into C layout , this will help in improving efficiency and reduce
travel time and will further help in solving disconnected worker problem
• Worker should be given training for using new technology , this would help in increasing the
utilization of system
• The available land can be used for increasing the capacity , increase they get OEM contracts.
• T​ he material management can be improved by giving each worker the no. of parts required for
the assembly. This would not only improve the material management but also reduce pilferage​.

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