Production and Operation Management
Production and Operation Management
Production and Operation Management
Final project
Submitted By:
Zohaib Mehboob(M.com iv)
Submitted To:
Sir Azher Majeed
ACKNOWLEDGEMENT
First of all we are highly thankful to ALLAH Almighty who helpful us to fulfill the assigned
project. Secondly, we dedicate this project to our parents, who guide us on every step during our
student career. They set up to meet every challenge in every walk of life. We are owed to our worthy
and respectful teachers who taught so luminously and bestowed creative effort, mental enhancement
that enables us to fulfill this task. Especially, we are obliged to Sir Azher Majeed who encouraged and
gave us mental robustness to complete this project.
Lastly, we are thankful to the management of MASTER GROUP OF INDUSTRIES who
provide us all the necessary information and helped us for the completion of this project.
Zohaib Mehboob Alam
M.com(iv)
PREFACE
Now a days business is the only legal way to earn money. But business is not an easy job. To maintain
a business is a very difficult job, especially in this competitive world when you find very tough
competition on each step. Now a days manufacturing of a quality product is an easy job but to sell/
market it is a difficult one.
The firm who is using future plans for its product is more successful. Specially when you are trying to
access your target goals. You need to analyses different environment of your business, then it enables
you to compete.Still many people may feel like they do not understand how to analyze their business
operations. To have a better understanding of Business operations, it would be better to look at the
basic concepts and important steps of production and operation management.
The documentation of our project includes different information about a large scale business. That
how it analyze the operations of Master Tiles and ceramics. All necessary steps are discussed briefly
in this project.
Executive summary
Master Tiles was formed in 1995 by sheikh Mehmood iqbal. Master tile is one of the biggest tile
manufacturer in pakistan.Master tiles provides the opportunity to upgrade the life style by
introducing wide range of tiles for the first time in Pakistan with latest Italian technology. Master tile
have a capacity to produce more than 25000 sq/meter tiles per day.
Master captures the 62% of local market share. it manufacture wall and floor tiles at good quality
and affordable prices.
The marble and granite prosing industry is closely related to the development of building materials
the modernization and vitalization of which leads to the progress of the tile industry. in traditional
construction people have always been using chips and marble for floor finishing from last two
decades, but slowly it loses its shine away leaving a dull and rough look.
As the time changing traditional construction styles and finishing materials also changing into
modern construction which saves time and cost factors gives people a readymade finish for a life time.
The tile industry in Pakistan has a big potential in future.Availibility of raw material and also
increasing demand makes it a growing industory.People want to change. This trend shows increase in
demand of tiles. In future seeing the increase in demands local firms trying to expand their
manufacturing capacity. In Pakistan the availability of raw material in area like marble mines, cheap
labor and high demand for quality paved way for growth in the tile industry.
Although master tiles with its latest technology and facilities is leading the market. Many competitor
trying to compete master but have less capacity, they offer less price but the quality is not good as the
master tiles offers.
It's a story of three decades, more than quarter of a century. It's a tale of a dream
realized against all odds. It's a matter of a commitment which really mattered. It's an
account of an uphill task converted into mere peanuts through a clear vision, narrow
focus, sheer dedication, meticulous hard work, consistent belief and constant quest for
excellence.
Starting in 1982 as a small setup with big dreams, high ideals and honest
commitments, Master today, stands as an unprecedented leader in world class wall
and floor tiles, sanitary fittings and plastic accessories along with a host of other high
quality products.
1982:
Launched as company manufacturing and marketing high quality sanitary fittings,
with clarity of concepts, the target at that time was to provide a well coordinated
complete bathroom to our customers.
1987:
Established as the pioneer and market leader in world class sanitary fittings, Master
introduced the concept of matching bathroom accessories in technical collaboration of
England and Germany.
1995:
At a time when the market was flooded with imported wall tiles as the only quality
option, as they called it, Master once again took the lead. Based on the worlds top of
the line Italian technology, Master launched its range of double fast fired wall tiles.
Far superior in quality and aesthetic values than imported ones, Master tiles took the
market by storm and instantly gained a major share of the market.
2000:
Master tiles were such a tremendous hit in the market, to meet the increasing
demands, production capacities had to be tripled in the year 2000. Same year, Master
added up worlds best plant and acquired best recipes for in house production of tiles
raw materials including frits and colors. These advanced recipes in frits and colors
resulted in giving an entire new look to the product appearance, quality and finish.
Adding endless possibilities to the imagination of our valued customers, Master
introduced a range of decorative tiles including strips, trims, motives, panels and
mosaics.
To facilitate the customers in better applications and maximizing their benefit, Master
provided its own brand of quality grout and adhesives.
2005:
Master Granite Tiles!
Bringing a true revolution in the tile industry, this was the year when Master proudly
introduced Granite tiles, which were by their quality standards, second to none in the
world. The years that followed witnessed an innovative approach setting new
benchmarks in product quality, range spread, availability through a wider network and
a bundle of value added services like customer awareness and guidance campaigns,
unmatched after sales service and complaint handling.
2010: Customer Focus:
At turn of the decade, Customer orientation remains the key word in all our plans and
executions. Reaching at the doorstep of our customers, wherever they are, we are
making sure we are closer to their needs, aspirations, affordability and after sales
expectations.
Vision
Masters vision is to lead the market with innovations in product development to
improve the quality of life and lifestyle of its customers. With timely adaptations to
rapidly developing technologies and meaningful investment in human resource
training, Master will strive to maintain the differentiation edge through provision of
unmatched products and services to its customers at a competitive price.
Understanding the needs of the business as a whole, its strategic direction, and identifying initiatives
that will allow a business to meet those strategic goals.
PRODUCTION SITE:
G.T. Road Kamoke, Pakistan
In other cities services are provided through showrooms and distribution network in following cities:
Cities
Distributors Name
Gujranwala
Lahore
Rawalpindi
Karachi
Multan
Islamabad
Peshawar
Hyderabad
Gujrat
Narowal
Sharja tiles
H.M Sons
Shakeel trading corporation
Magoon trading company
Decent traders
Magoon trading co.
Magoon trading company
Zohaib ali and co.
BBC Traders
Faisal Trader
Jehlum
Mirpur
Okara
Shekhupura
Ali Trader
Khan Traders
Okara Trader
Magoon sons
Organization organoram
Board of directors
CEO
General Manager
finance
Production
Plant
Manager
manager
G.M
Sales&marketing
Marketing
IT Manager
Advertising
Manager
Manager
G.M Admin
Manager
Sales Manager
Area Sale
administration
Manager
Management structure
Chief Executive Officer:
Sheikh Mehmood Iqbal
Directors:
Sheikh Muhammad Asgher
Sheikh Muhammad Akbar
Mr. Sheikh Javaid Iqbal
Mr. sheikh Pervaiz Iqbal
Mr. Sheikh mehmood iqbal
Mr Sheikh Nasir Iqbal
Mr. Skeikh Maqsood Iqbal
Business Advisors:
Legal advisor Firm:
Principal Bankers:
Allied bank
KASB bank
National Bank limited
Saudi pak commercial bank
Askari bank
Dubai Islamic bank
1: Floor Tiles
12*12 Matt Glazed
12*12 stonee granite
16*16 Matt Glazed
16*16 granite polished
24*24 Matt Glazed
24*24 Granite polished
24*36 granite polished
2: Wall Tiles
Will putting four workers on a task that takes 14 hours cost lessthan renting a machine that can do
the same task with one worker in6 hours?
If you change the first shift from an 8 AM start to a 10 AM start, can they handle the early evening
rush so you don't have to hire an extra person for the second shift?
ORGANIZING:
Now the organization has a plan, it has to make it happen.
Is everything ready ahead of their group so the right stuff will get to their group at the right time?
Is their group prepared to do its part of the plan?
Is the downstream organization ready for what their groupwill deliver and when it will arrive?
Are the workers trained?
Are they motivated?
Do they have the equipment they need?
Are there spare parts available for the equipment.
Has purchasing ordered the material?
Is it the right stuff?
Will it get here on the appropriate schedule?
Do the work make sure everything needed toexecute the plan is ready to go, or will bewhen it is needed.
Check back to make surethat everyone understands their role and theimportance of their role to the
overall success.
Leading:
Now flip the "ON" switch. Tell people what they need to do.
They know which section is working well?
Which piece and when?
They know when to come in?
What to start?
When to stop again?
Do you have the right number of workers in each department?
Have you arranged the sections?
Controlling:
Now that organization has everything moving, it hasto keep an eye on things.
Make sure everything is going according to the plan.
When it isn't going according to plan, they need tostep in and adjust the plan
Problems will come up. Someone will get sick. A partwon't be delivered on time. That is why
they developeda contingency plan in the first place. The manager, haveto be always aware of what's
going on so he / she canmake the required adjustments.
Continuous improvements in various management areas based on the principles of the good corporate governance ,
compliance with related legislation,regulations and code of conduct are central to the management policy of Master Tiles
Departments
Abrasive staff
Color staff
Mono staff
Tiles staff
Grinding worker
Grinding worker
Mono worker
Tiles worker
Frit worker
No. of Employees
2
7
81
137
169
20
307
517
31
10
11
Abrasive worker
Sialkot showroom
Total
36
43
1350
2: Raw Material
Ceramics are defined as a class of inorganic, nonmetallic solids that are subjected to high
Temperature in manufacture and/or use. The most common ceramics are composed of oxides, carbides, and
nitrides. Silicides, borides, phosphides, tellurides, and selenides also are used to produce ceramics. Ceramic
processing generally involves high temperatures, and the resulting materials are heat resistant or refractory.
The raw material mixture for the production of Mater ceramic tiles is prepared from a number of
components:
clay,
Dolomite silt
And coalized granite.
The clay exploited from the factory mine is arranged in lots and, after having been left outside for a certain
time, it is transported in trucks to a roofed over storeroom.
The remaining components for the raw material mixture (Dolomite silt and coalized
granite) are transported to the storehouse in bulk. The material is stored in a roofed over
space in boxes or silos.
Equipped with most sophisticated plant and machinery based on future technologies
from the world's top six Italian companies, Master Granite production facility is so
advanced, unique and innovative, it allows highest levels of manufacturing achievable
today in the ceramic industry.
Ranging from gigantic continuous feeding mills to use of robotics from material
handling, the facility is based on futuristic state of the art system. This facilitates
production of a product so sound technically and aesthetically, it is being experienced for
the first time by the world.
Capital structure:
Authorized Capita :
Paid up Capital:
Incorporate Date:
Authorized Capital Shares:
Paid up Capital Shares:
Authorized Per Value
Paid up Per Value
Manufacturing F
250000000
200000000
1/2/1992
2500000
2000000
100
100
1: Quality management
ISO 9001:2008
Implemented
To bring excellence in our products and services.
We believe that quality adds value and we are determined to serve our valuable
customers with highest quality products in order to provide best value for their money.
Continuous improvement in various management areas based on the principles of good
corporate governance, compliance with related legislation, regulations and code of
conduct are central to our quality policy.
(i)
Customer satisfaction:
Master tiles provides pure satisfaction to their customers by providing services and
fulfilling their required quality standard
They analyze customer satisfaction by observing market and taking reviews of the
customers.
Serviceability
(iii)
(iv)
Special features
Products of master tiles and ceramics have the following special features
which makes the customer to choose the products of master :
slip resistance
non-conductive
Tiles dont fade up in the light of sun.
Stain resistant and do not absorb stains or any kind of
moisture.
available in a wide variety of sizes, shapes, colors, designs
and
Meet the health requirements.
Awards
Master's product and service quality has been acknowledged time and again at different
local and international, public and private forums. The latest in a long list is Brand of
the Year Award 2009. Master has been awarded in Tiles as well as Sanitary Fittings
category.
3: Research&developmernt
Quality of the end product at Master, However, is even better than these top world companies. This is
primarily because of access to better quality raw materials here in Pakistan. Secondly, Master have installed
a combination of all the latest Italian technologies, being put to work together for the first time anywhere in
the world.
Top Management of Master serves as a resource, mentor, and guide to develop quality management
systems, provide quality training, and evaluate implementation & effectiveness through process evaluations,
surveillances, internal audits, and review of nonconformities, corrective actions, customer complaints,
customer satisfaction and/or dissatisfaction data.
Quality management policies defining responsibilities for the development, implementation, maintenance,
and management of the system are clearly defined. Well defined policies, quality objectives and system
process requirements are in place for basic quality-related processes.
Apart from being a leader in its line of products in Pakistan with availability in all cities and towns
throughout the country, Master is taking the export markets by storm with overwhelming response from
overseas customers.
When it comes to quality in a global context, Master has got a dual advantage as compared to any other
producer in the world. Master operates the worlds latest Italian plant and equipment under the supervision
of leading Italian professionals. The real edge comes from the unique quality of raw materials, which in
their properties, are unmatched anywhere else in the world. This exclusive combination results in a product
which is second to none. That is why, customers all across the globe having access to Master products
choose them as their first preference. The unconditional trust which our products enjoy in Pakistan market is
rapidly expanding beyond borders.
Currently, Master is exporting its products to United Kingdom and Afghanistan directly and indirectly to
many European, Middle Eastern, Asian and African markets. As a matter of policy, we are out to explore
newer markets around the globe. Queries for orders or joint ventures for any part of the world are warmly
welcomed.
MARKETING STRATEGY
Master has old marketing strategies. There are some problems in their marketing strategies as they are not
using the modern standards but through their strategies. company is making more and more profit.
Marketing strategy of Master industry is based upon their strong dealership network. Company has lot of
benefits of this network. its helps in improvement of the existing product. Company enjoys a great level of
good will in the mind of customers and has been emerged as a brand name in the market.
Other marketing strategies:
1. Know about the customer demand
2. Packing of the product is also according to the standard
3. Providing better benefits to the dealers
4. Well experienced marketing team
5. Well oriented supplies
6. Knowledge about market conditions
7: Technological operations
Master is Equipped with most sophisticated plant and machinery based on future technologies from the
worlds top six Italian companies, Master Granite production facility is so advance, unique and innovative,
it allows highest levels of manufacturing achievable today in the ceramic industry.
Ranging from gigantic continuous feeding mills to use of robotics for material handling, the facility is based
on futuristic state of the art systems. This facilitates production of a product so sound technically and
aesthetically, it is being experienced for the first time by the world.
It all beings with damp grinding of clays and other raw materials, the process are carried out in the first of
its kind Continuous Ball Mills. Raw material is fed into these mills at one end to get slip from the other. The
slip is separately treated in accordance with the end product requirement. The process continues either to
produce Le Porcelain range or Granite.
As per questionnaire:
(1) Does technology allows products to be made cheaply and better quality?
Ans: Technology in tiles industry does not change very quickly. in master tiles they use their Italian
manufacturing plants for producing good quality products at affordable prices. This is their
competitive advantage.
(2) Does technology offers consumers and business more innovative products?
Ans: master tiles use their new technological plant to produce more innovative products. Master
produce new styles with lot of colors and they produce more innovative products.
(3) Does technology provides a new way to communicate with customers?
Ans: technology changes in the media industry in Pakistan allow the companies to adopt the new
ways of communication with consumers. Now there are new and advanced medium for
communicating the message like digital signboards and now advertisement can be done through new
cable channels. These new local cable channel are watched everywhere. So we can say that new
technology offers new and effective ways of communication.
Wet method
Forming
Extrusion (plastic forming)
Glazing and
decoratingFiring
Second
Slip casting
Sorting
and packing
Storage
Firing
Drying
In which clay and other compositional constituents are mixed and comminuted
By mechanical means without use of water.
2: wet methods
In which clay and other compositional constituents are mixed with water for grinding or milling in rotating
mills or ball mills. The resulting suspension the needs to go through thermal process in order to remove
water again and be converted in semi-dry raw material.
Forming or molding
Most current products are made by semi-dry pressing or by extrusion .the slip casting process is innate to
manufacture of sanitary ware, table ware, and ceramic product of complex geometry. In case of ceramic
tiles it is used only in making border trims and other decorative elements.
Semi dry pressing:
The raw materials, in the form of small hollow spheres with moisture content of 5-7% or in the form of
solid grains with a controlled particle size distribution, are subjected to mechanical pressing, which provides
the ceramic tile with its definitive shape by application of a uniform pressure. That uniformity of the
pressed raw material also allows the body to dry uniformly and avoids the defects that originate in differing
behavior of the material during the drying and subsequent firing processes.
The master has implemented the new generation of high performance presses. whose most important
innovation has involved the diversified ,stepped feed of different raw matrials,achieving decoration effects
in the ceramic body.
Extrusion:
After raw material preparation, a plastic class mass is obtained by homogeneous mixing In the water. The
resulting clay has a moisture content of 14-20%, the body being pressed in a cylinder, through a die that
provides the tile with its final geometry.
The facility used to press clay forward, including the mould or die and the cutter hat cuts individual pieces
of the same size from the exiting column of clay. the resulting individual tile is termed as extruded tile.
Drying
All forming processes need to incorporate water in order to be able to take advantages of the clays
plasticity. The water is removed before the firing process.
Master has implemented drying equipment that combines great productivity and uniformity in the operation
devoted to water removal from ceramics. Drying uniformity which is absolutely essential to avoid tile
breakage and deformation, is achieved by appropriate management of the hot air flow and physical
separation of the tiles for uniform water removal through the ceramic tile cross section and surface.
The pressed tiles are automatically placed in a double canal horizontal drying room. The tiles
are dried by gradual heating. The drying time depends on the type of tile (for flooring or wall
lining) in other words, on the humidity content of the raw tiles.
In the glazing preparation process, the raw material is ground irregularly in a drum ball
mill .The glazing is sifted and emptied in a pool, filled in tubs and transported to the
glazing unit.
After leaving the drying room, the tiles travel on a conveying belt along the glazing line
and a layer of engobe is applied on them followed by a layer of glazing.
The tiles pass under the sieve for impressing paste or rotating roller that applies the
decoration sample. In the end, the tiles are delivered to box cars and then transported to the
ovens.
Business expansion
Location of the master site is directly related to the future plans, if the expansion is made,
the establishment of new plants will be possible to make. They dont need to struggle again
for new setup. Thats the reason of the importance or their loacation.the most recent
example of this importance is establishment of master clothing with the master ball points.
Location of master also provides the easy access to roads and transportation facilities.
Availability of factors
Factors of production are the resources available for the production of goods, at current
location Master have the easy access to these factors. the most easy access is to labor from
nearby villages or towns, available at adequate labor rates. The other resources like fuel,
gas etc is also easily available.
Community considerations:
i)
Quality of life:
Master is providing high quality of life to the community by making the worlds
most qualified products in ceramics. at their nearby market area. Easily accessible at
normal rates.
ii)
Services:
Master provides the services to their customer which are required by the, like after
sale services, conceptual guidance etc.
iii)
Inventory management
Arshad Mehmood
SWOT Analysis
Internal:
Strengths
Worlds most advanced technology is being used.
Work Delivery Scheme
High Quality
Wide Range of products
Service
Highly professional and skilled foreign employees
Fast communication between departments
Always try to improve their production quality
Good dealership network all over the Pakistan.
They can produce large range of designs, styles and colors which is one of the major strength.
Weaknesses
External
Opportunities:
Expansion into the World Market
Retail Partnerships
Internet shopping
Further exploiting the Tile sector
Make own chain of regional Stores
One of the big opportunities for Master Tiles is the growing rate of construction, which increase the
demand for tiles.
Govt. reduced the tax on exports of the tiles and also increasing demand in foreign market provides
an opportunity for Master Tiles to increase its sales by exporting its tiles.
Threats
Some local companies are coming to Granite Industry
Overseas groups entering the market (Chinas Dumping )
Manufacturers are still seeking to legally slow down the penetration of own brands
Other factors
Political factors:
The political factors have a huge influence upon the regulations of the business. In
Pakistan, political environment is not stable. It is very dynamic which affects the business
industries .government policies are changed during regular intervals of time. This political
instability affects the tile industry also. In case of master tiles, when the incident of
Benazir Bhuttos death happen. Then during that time their material was destroyed by
political workers. Their vehicles were destroyed when they were on the road for
distributing the final product. So due to this political incident Master Tiles beard a
financial loss. Government has some rules and regulations for the environment pollution.
Master Tiles claims that they do not pollute the environment during the manufacturing
process of tiles. the wastage is managed in sophisticated manner that it does not pollute the
environment.
Master Tiles is the first tile manufacturer in Pakistan which submits the application to
nation tariff commission against the dumping of Chinese tile manufacturer. The result was
that government imposed anti dumping duties on Chinese tiles which also shows that
government wants to promote and save its local tile industry.