Cosmetics

Laboratories, Inc.
A Case Study
Analysis
Group 3
Vanessa Baoyan
Jean Alabata
Arcily Alonzo
Jackivi Aperocho
Janith deconlay
 Executive Summary
Cynthia Ramos, serving as the Assistant for Production Planning and
Control at Cosmetics Laboratories, Inc. (CLI), was preparing to
present her first report to the company's management. After a
thorough examination in her initial month, she discovered a
recurring problem: significant delays in the powder compounding
process, resulting in an operational output of only 42% of the
standard. Initially, the production supervisor blamed the delays on
the quality control department, which, in turn, pointed back to
production. Now, after an additional month of thorough
investigation, Cynthia Ramos has compiled a report with factual
findings, insightful analysis, and practical recommendations. This
report not only outlines the complexities of the challenges but also
proposes actionable strategies to improve operational efficiency and
tackle the underlying issues in CLI's production processes.
Cosmetics Laboratories, Inc. Case Study Analysis
01 Introduction

02 The Problem

03 Facts of the Case

Contents 04 Analysis

05 Recommendation

06 Conclusion
01 INTRODUCTION
The Company
CLI operates as a wholly-owned subsidiary under
the umbrella of Pharma Marketing Corporation, a
reputable entity in the industry. Established two
decades ago, CLI obtained licensing to
manufacture both domestic and international
cosmetic brands. Presently, its manufacturing
portfolio encompasses four international brands
alongside ten domestic ones, each comprising a
diverse range of products with multiple color
variations per item. Projections indicate that CLI
is poised to generate a gross value totaling P87
million, yielding a net income of P6 million post-
taxation.
The Organization
The Manufacturing Process

Supplier Raw Materials Compounding

Filling &
Finishing

Warehouse

Quality
Quality Control
Control
02
THE
PROBLEM
1. Matching colors to the master
sample is challenging.
2. The analysis process takes too long.
3. Compounding and delivery are
delayed.
4. The Production Supervisor has too
much paperwork.
5. There are minor disputes among
supervisors.
03
FACTS OF THE
CASE
Production Data (January-October)
Production Data (January-October)
Production Data (January-October)
Production Data (January-October)
Production Data (January-October)
04
ANALYSIS
SWOT ANALYSIS Strengths
• Established quality control,

S
• Loyal customer base
Threats
• Capable management
• Outdated machinery poses a
• Dedicated workforce
threat.
• High-demand products.
• New competitors with modern
equipment could gain market

W
share.
• Supervisor conflicts may
escalate, posing future risks if
unresolved.

Weaknesses

T •
•

•
Outdated equipment
Inconsistency in master sample
color
Production based on current
Opportunities
orders
• Consider investing in new machines • Lack of permanent

•
to enhance efficiency and
attracting additional customers to
optimize productivity
Promoting one of the supervisors to
O •
manufacturing manager
Excessive paperwork for the
production supervisor.
the role of Manufacturing Manager.
PESTEL Analysis

P E
Politics Economy
Regulations and Compliance Sustainability Practices
Political Stability Environmental Regulations

L
Legal Social
Intellectual Property Protection
Regulatory Compliance S Consumer Preferences and
Demographics
Labor Relations and Workplace Culture

Environment Technology

E T
Market Trends and Economic Manufacturing Technology and
Indicators Innovation
Taxation and Cost Management Research and Development
05
RECOMMENDATION
Problem 1 Validating the Formula
The technician, under the Compounding
Supervisor's direction, will carefully record
the types and amounts of pigments used in
the original formula. Detailed records will
track every step and how long it takes, so
the quality control team can check each
batch thoroughly before approving it. Then,
a revised formula will be created for future
batches of the same product. This cycle will
continue until the refining process is
finished.
Problem 2 Minimizing Prolonged Analysis

Lab Technician is mandated to promptly

handle the production sample upon its
submission for sampling. In cases of
necessity, the department is authorized to
recruit additional technicians as needed.

The prioritization of product testing over

material testing is emphasized, unless
explicitly waived by the Manufacturing
Manager at her discretion.
 Optimization of Lab Testing
Problem 3
The Compounding Technician should only
submit a sample if they're at least 90%
certain it will pass the test. To track lab
tests, it's suggested to use a QC analysis
sheet. The Production Technician will note
the time the sample was given, and the QC
Technician will record the time the test
results are submitted.
 Using Computer-based Inventory System
Problem 4
This change will lessen the time the
Production Supervisor spends calculating
material needs. Now, these calculations will
happen yearly for budgeting, every six
months for ordering, monthly for delivery
planning, and daily for requisition
processing.
 Team Building Activity and Workshops
Problem 5
To tackle and minimize conflicts between
supervisors and workers, it's suggested to
hold team-building workshops once or twice
a year. These workshops aim to build trust,
teamwork, and professionalism among
employees, improving overall team
performance and productivity.
Recommend
Investment in New Machineries
ation by the
Group CLI can improve its production by getting
new machinery. This will help reduce delays
caused by problems with color matching and
analysis, especially for products going to
international markets. Also, it can attract
more customers and boost sales and profits.
Even though buying new machines might
cost a lot at first, the benefits in the long
run make it worth it.
06
CONCLUSION
Despite having strong quality control and a loyal customer base, CLI
faces challenges due to outdated machinery and internal conflicts.
However, by focusing on upgrading technology, encouraging
innovation, and following the outlined compounding procedure, CLI
can tackle its weaknesses, improve productivity, and stay
competitive. Additionally, holding teambuilding workshops to build a
positive workplace culture is crucial for teamwork and efficiency.

It's also important for CLI to meet regulatory standards, prioritize

product testing, and use the recommended QC analysis sheet in
production. These steps ensure consistency and safety in CLI's
products, building trust with consumers and enhancing its
reputation in the cosmetics industry.

By implementing these strategies, CLI can seize growth

opportunities, handle competition from new entrants, and set itself
up for long-term success in the cosmetics market.
Thank
You!