Individual Assignment No 1
Case Analysis Report
On
‘Primanik Containers and bottleneck’
Submitted by
Executive Summary
The case describes an inventory management conundrum in a customer centric manufacturing firm, Primanik Containers.A fresh B School Graduate (Family Managed Business) ,Piyush Mehta, tries to tackle the problem as he learns about his father,Mr Bansilal Mehta’s, enterprise. He tries to find the bottleneck in the firm’s functioning and identifies the printing department as the one. He investigates and finds that the firm is underperforming mainly due to the absence of timely availability of raw material. He finds that the problem further results in additional costs on human resource, raw material and storage and also overtime expenses.
SITUATION ANALYSIS
Primanik containers is a family owned manufacturing firm started by Bansilal Mehta in 1977 after an informal meeting with the then purchasing director of ABC Pharma. ABC Pharma had a supply problem and Bansilal was quick to sense the need and hence formed Primanik to address ABC’s supply problem. Thirty three years down the line ABC (along with others) is still a loyal client of Primanik containers and still gets its manufacturing outsourced from them. The firm’s maximum orders still come from its long term special customers indicating the customer centric approach that the firm adheres to. To complete these orders the company uses four automatic machines for manufacturing aerosol cans according to the dimensions entered and a high output(300 parts per minute) printing machine which could complete a ‘three shift work’ in one shift.
Piyush Mehta is Bansilal’s only son and is a fresh B school graduate in Family managed business (FMB) from a well reputed institute. He decides to put his education into practise by analysing the order flows. He finds that the printing sector is a bottleneck.
Piyush