Pramanik Containers

and the Bottleneck

Challenge
Presented By:
Aabhas Singhal (BD22060)
Amulya Raj Singh (BD22069)
Atul Anand (BD22073)
Divyanshi Agrawal (BD22077)
Sanket Gupta (BD22079)
Saahil Khanna (BD22099)
Case in Brief
• Business: Aerosol can manufacturing
and printing
• High speed High volume Business
• 4 automated machines to produce 25
cans per minute.
• Printing machine capacity 300 parts per
minute.
• Problems with respect to effective
utilization of manpower
• Ineffective information system and
inventory management.
• Work needs to be done on
management of printing plates
• Expansion problems.
Problems:​
• Improper Management of Workforce​
1. 4 persons are employed just for finding the right plates​
• Inefficient Customer Record Keeping​ Objectives:​​
1. Customer account spread over multiple pages resulting in order getting mixed
up​
Improve the utilization of available resources​​
• Inefficient Printing Plate inventory management​ Enhance the quality​​
1. 5-6 urgent orders every months because of missing orders​
Retaining the customer loyalty​​
2. Plates are hard to locate​
• Lack of discipline and efficiency in employees​ Bringing down the individual “can” cost​​
1. Employees sleeping during work hours​
Reduce the dependency on employees​​
2. Lack of seriousness among workers​
• Insufficient funds for further developments​
1. Limited capacity and profits stagnant for years​
 Options-
SHORT TERM SOLUTIONS PROS
Hire more people to maintain records or find plates faster Saving overtime costs
Maintain regular inflow and outflow of plates Efficient Book keeping
Replace registers with MS-Excel to maintain records Efficient Book keeping
Less workers required to find plates
Separate storage system for frequently used and rest of the plates Faster extraction of frequently used
plates
Discard plates that are not regularly used Faster extraction of frequently used
plates
LONG TERM SOLUTIONS
Installation of RFID plate sorting system Faster extraction of frequently used
plates
Installation of ERP System Efficient Book keeping
Less workers required to find plates
Help in fulfilling long term goal
CONS
Don’t want to spend more
Does not solve long term problems.
Workers are not efficient at record
keeping
New skilled employee
New algorithm required to locate
plates.
Rarely used plates would still remain
unorganized
Wastage of other plates/ increased
cost to make them again
Requires initial investment
Does not fulfil goal of expanding
High initial investment
Skilled labour required
Orders 60 Fabrication Capacity/Day : Cans/hour * Hours/Shift * Shifts/Day *
Machines
Urgent Orders 7 =3000*8*3*4 = 144000

Cost per Plate 7000 Printing Capacity/Day : Cans Printed/hour * Hours/Shift * Shifts/Day
=18000*8*3 = 432000
Impressions 100000
Bottle Neck: Fabrication
Cost per Impression 0.07 Daily Production: 30000 Cans
ERP Cost: 2 crores + Training Cost + Salary of New Skilled Staff
New plates per month (Due to
mismanagement) 49000 New facility cost = 5000(area) * 100(rent) + 10000*6(salaries) =
560000 per month
ERP Cost 20000000
Extra information needed:
Payback Period (in years) 34
Average impression per plate in the current scenario
Cost-benefit analysis considering ERP/New space and new MNC order
 THE PLAN
Short Term:
In the short run, the company could replace registers with excel and
hire one person to maintain records. Then they can separate
frequently used and other plates to make the former easy to find.
They can also make a proper storage system similar to that of
a mailroom or a library where every plate has a dedicated address
which can be registered in excel. This way they can keep a separate
record for every customer and use the search option to find the
location of any plate that they need. Ultimately, they would require
1 employee to maintain excel and 1 employee to find and deposit
the plates.

Long Term:
In the long run ERP system seems to be the best option. It will help
solve the problem of inefficiency as well as help fulfill the goals of
expanding the business. With the short-term Improvements, they
can increase their capacity and acquire new customers like Radiant
Healthcare and increase the revenue and also reduce costs. With the
increased profits they can save up for the ERP system. (Although
they need to look into the amount of tax they have to pay now).
.