Operations Management

Mgt314

Section: 14

Summer- 2019

REPORT ON THE PRODUCTION PROCESS OF DOOR

AND DOOR FRAMES MADE BY “PARTEX STAR”

GROUP

Submitted To: Raihan Sharif (RsH3)

Department of Management
Group- 3
NAME ID
Md. Serazul Haque Shuvo 1520801630
Rakin Naveed 1510347030
Sakibul Bashar Surid 1511648630
Yasir Arafat Chowdhury 1610047030
Mohammad Ashraful Islam 1612806030
Shawana Chowdhury Holy 1512052030

Date of Submission: 24th August, 2019

 Letter of Transmittal:

August 24, 2019

Raihan Sharif

Lecturer, Department of Management

North South University

Dear Sir,

It is our great pleasure to inform you that we have completed our project which was on

“Production process of door and door frames made by “Partex Star” Group in due time. We tried

heart and soul to do this project with our best possible effort.

We hope that we are able to meet every requirement to finish this project. We are very grateful

for your guidance.

Sincerely,

Md. Serazul Haque Shuvo- 1520801630

Rakin Naveed- 1510347030

Sakibul Bashar Surid- 1511648630

Yasir Arafat Chowdhury- 1610101030

Mohammad Ashraful Islam- 1612806030

Shawana Chowdhury Holy- 1512052030

 Executive summary

Our aim is to finding out the production process of doors and door frames made by “Partex Star”

group, especially their process type and layout, process mapping, inventory management,

forecasting, solutions & recommendation and lastly quality management.

We went to Partex Groups door making factory to get to know all the important details about

their processing issues.

They use the repetitive process for making each type of doors, though we think to some extent

they use continuous as well and their layout is product layout.

Process mapping, forecasting, exponential smoothing and signal tracking all the authentic works

are perfectly maintained by Partex Groups.

Their inventory management system is going perfectly as well because of more investment on

this issue in recent years.

They use six Sigma. With the long-term plan they are getting changed day by day which helped

them hit a new possibility in their quality giving a well performing quality management system.
 Table of Content

Contents Page number

1. Company profile 1-2

2. Analysis of Product 2-3

(Process type & layout)

3. Application of production and 3-5

operation management concept

4. Process Map 5

5. Demand Forecasting 6-8

6. Analysis of quality control issues 8

7. Total Quality Management 8-9

(TQM)

8. Operational Challenges 9-10

9. Recommendation 10

10. Conclusion 11

11. Reference 12

12. Appendix 12-13

 Company Profile
Partex Star Group is one of the biggest Bangladeshi broadened private area enterprises. The

Group, the then Partex Group, began its voyage in 1962, with the torchbearer, Mr. M.A.

Hashem, the originator Chairman of the then Partex Group, a prominent industrialist of the

nation. Partex Star Group possesses and effectively works twenty assembling, administration

and exchanging concerns conveying best qualities to clients through its items and

administrations. Doors and door frames and furniture are their one of the essential existed

organizations. Partex is an agro-based substitute of wood. Through the ceaseless improvement

of generation process, Partex has been delivering its entryways for the last 34years (Door

business set up in 1985). It jellies timber assets and gives a result of brilliant properties, modest

and eco-accommodating uPVC and different assortments of Doors. Particle board and board

made doors have demonstrated to be better in numerous regards than characteristic timber. Of

the entire array of crude materials utilized, none has demonstrated as adaptable as jute stalks,

the parent raw material of Partex Doors and Boards. The Doors are delivered in a cutting edge

and profoundly advanced programmed plant. In structure, Partex is a homogenous leading

group of incredible mechanical quality. The items can withstand every regular change and

furthermore oppose termite and organism assault. Jute stalks are chipped, processed, adapted

and stuck framing a composite serviceable section, which take last state of doors under warmth

and pressure.

Partex Door is fundamentally a substitute of sawn and measured timber and in this manner,

forestalls deforestation, along these lines fortifying the natural equalization. They offer

numerous decisions in Plain, Ply, Veneered and Vinyl sheets of different sizes and mixes for

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use in inside enrichment, furniture, entryway and door jambs, segments, false roofs, retires and

boards for the home, office and business foundation.

Process type and Layout

Process type:

Partex group has very specialized processing system for making their different types of doors.

They use repetitive process to make their door products. They produce 11 types of doors. Most

of them are labor intensive. They have well trained carpenters to make the wooden doors. Some

type of doors is finished using automated machine. Though those machines are used mainly for

making the standard size.

Their main raw material for making the doors is timber. Thy collect those materials from

various sources. Mainly it comes from the hilly tracks of Bangladesh.

After collecting those raw materials their carpenters and labors make the ultimate slid, uPVC

and other types of doors. They use jute straw for making the boards which are used to in the

middle of the doors. They import veneer woods to make the thin frames of the doors.

Some machines are used to design the doors.

Just after collecting the timbers, the timbers are being gone through chemical treatment, drier

plant, dying treatment which make those doors to last long.

Process layout:

Partex is best at their creation procedure as they have all around prepared labor, experts and

progressed mechanical machines. Their generation once in a while intrudes. They produce mass

measure of items with least imperfections. Explanation behind their low intruded on generation

procedure are:

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• Output: as the procedure is smooth it can deliver high volume inside sensible time.

• Cost: as the machines are very much kept up and work is all around prepared, it creates less

faulty items. It spares cost.

• Utilization: their gear and procedure are sorted out in with the end goal that it uses greatest.

Their arranged treatment of products makes them most extreme utilizable.

• Standardization: work is institutionalized to the point that it encourages creation to increment.

They pursue item design. "In assembling building, an item format alludes to a creation

framework where the work stations and hardware are situated along the line of generation,

similarly as with mechanical production systems."

Application of Production and Operation Management Concepts

Inventory Management:

Inventory management means management of inventory. “Inventory management is a

systematic approach to obtain, store, and profit from non-capital assets (What is inventory

management?, 2019). “The right stock, at the right levels, in the right place, at the right time,

and at the right cost.” ("Chapter 9 Managing Inventory in the Supply Chain")

Partex group produces variety of Doors. They usually hold their finish goods for 12-15 days.

They use Universal Bar Code to keep track of finish goods. Universal Bar Code is not used for

raw materials but they keep record manually. They generally hold raw materials for 35 days.

They only use perpetual inventory system. We think they should use ORACLE, so that

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managers can track both raw materials and finished goods properly. It will also help them to

analyze the number of raw materials used and the number of finished goods produced.

Partex makes moderate number of Doors with moderate assortment. Their

Holding Cost, H =650646354.00, Cost, S= 554073602.00, Demand, D= 226212.00-unit Usage,

U= 226212.00/240.00=943.00 Doors/day, Production, P= 1000 Doors for every day

• Economic creation amount =2595.00 unit

• I (max) = 148.00 Doors;

• I (normal) = 74.00 Doors

• Total Cost= 9.64*10^10 TK (2016-2017)

• CT = 02.75 Days

• Run Time= 02.60 Days

•The all-out expense for Door is 09.64.00*10.00^10.00=96400000000 TK.

• Net pay is 01.47*10.00^11.00=964000000000.00 tk.

Unmistakably they are making profit.

Partex follows just in time inventory system. They don’t have to maintain a complete big

warehouse to store the raw materials, their suppliers directly deliver the raw material Timber by

themselves to the Door making factory of Partex. In this way they need to hold maximum of 12

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days to receive the raw materials. Their raw materials are 1s processed by machine to design

and then the carpenters make the doors. Before that the doors are treated by chemical plants. In

this way they can manage their inventory very well without getting much of defects in the

timbers. They also have their own distribution channels. By those they deliver the finished

goods to their own show room and corporate and Govt. clients. So, they manage a maximum of

40 days of holding inventory.

Process Map

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 Demand Forecasting

Forecasting is utilized to anticipate the interest for some future dates. It is utilized to express

the future estimation of a variable like interest. This apparatus is utilized to compute the

required spending plan for the generation. The Partex group’s demand forecast calculation

using exponential smoothing method and tracking signal calculation are shown below:

Exponential smoothing

Partex group generally forecast demand of the product based on previous order, exponential is

also used by them.

Actual demand of Doors is used in exponential smoothing calculation.

Here, (α=.10)

Forecasting demand for 5 years

Actual Forecasted
Period
Demand(unit) Demand
2014 394782 0
2015 354254 387802
2016 399500 390728
2017 452424 391604
2018 488176 397685

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Tracking signal

Tracking signal is used by Partex Door to forecast and monitor the forecasted data so that

it does not fluctuate with the actual in larger values

The data is represented here

Actual Tracking
Period Forecast Error ∑[Error] MAD
Demand Signal
2014 394782 0 0 0 0 0
2015 354254 387802 -33548 33548 33548 1
2016 399500 390728 8772 42320 24650 1.7
2017 452424 391604 60820 103140 66648 1.5
2018 488176 397685 90491 193631 100140 1.9

Here we showed the chart for tracking signal data

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The chart tells us that the real information changes in more noteworthy qualities with

conjecture. Now and again it shows determined interest was lower than real and now and then

it shows anticipated interest was higher than the genuine.

Analysis of quality control issues:

Partex Group is one of the most driving assembling organizations in Bangladesh and their

quality administration has one of the top most needs to the organization. Along these lines, to

guarantee their quality standard. Their everything representatives will give their persistent

exertion for improving their items quality. So Total Quality Management, cost of assembling,

quality in assembling, accessibility of assembling materials, the items topographical objective

market is what they considering for their quality control (Quality policy, 2019).

Total quality management (TQM):

Total Quality management is a continuous method by which the management as well as

employees of a particular organization to ensure long term customer loyalty and customer

satisfaction. TQM helps to identify no productive activities as well as wastage of production

and times. It aims at improving productivity as well as reduction of cost. So, to control the

products quality Partex Group follows the overall activities of TQM.

Partex’s effective TQM:

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 commitment

Availability of manufacturing materials:

Partex collect their raw materials directly from their suppliers, they have plenty of suppliers who

are divided based on region like Hill tracks. Jessore, Jhinaidah etc. if one region fails to supply

then others are there to fill the scarcity.

Operational Challenges

Partex have some kind of operational problems that distort the production. Like

Lack of skilled labor: sometimes the carpenters are not so skilled to design the recommended

doors

Natural Calamities: When flood hits the country, Partex falls into scarcity of raw materials

because at that time timbers are not so available.

Maintaining the plants: they have to maintain their chemical and drier plants with lots of costs

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Product development: Partex has to compete with 4 or 5 giant furniture making company ion

Bangladesh. So, they have to make sure to come up with new and developed doors frequently to

cope up with the competitors.

Recommendation

Partex offers the better nature of item than their client. By and large they don't get any kind of

objection about their item from buyers. In any case, one thing that they can improve is the issue

of broken Doors. Finding a broke Door in a flawless parcel is definitely not a decent buy for any

client. In this way, our conclusion is before disseminating the item in market, they should check

each group of items they produce in multi day. Besides they should focus on some different areas

also. For example,

gauge dependent on their units of

creation. On that point, we propose that they ought to pursue Linear Trend Equation. In the event

that they pursue Linear Trend Equation the level of blunder will be a base.

oors Powder by controlling the in general expense of

Partex

the Perpetual Inventory System which

just keeps the record of completed items. For this situation, we propose them to use ORACLE

tracking software. This software can monitor their finished merchandise alongside crude

materials which is an additional advantage for them.

execute Total Quality Management (TQM) to guarantee standard quality item.

Moreover, they have actualized Six Sigma also. However, we think they ought to create all the

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more requesting and testing methodologies on quality administration which will assist them with

facing and defeat the troublesome circumstances of market.

And lastly, they should have enough skilled labor to carry on the operation and production.

Conclusion

Among every one of the results of Partex Group, we have picked Doors for this report. Partex

Doors are staggeringly mainstream and famous excellence cleanser. By directing this report, we

have demonstrated the examination of the entire supply chain procedure of Partex Group with

their procedure design, process type, stock administration, process mapping, quality control

issues, operational issue and request anticipating. For better understanding we have joined some

scientific parts to affirm their accuracy in work. The demand forecast of Partex doors varies with

high points and low points and at some point, it is over assessed and in some cases, it is under

evaluated. They plan their work ahead of time which encourages them to work with

dependability. Over the prior years, Partex have utilized long haul plan to help their quality and

for the advancement of their organization. This arrangement helped them to set another

benchmark in their quality and guaranteed a superior achieving Quality administration

framework. They have a profoundly refreshed stock administration framework. Their

administrator can check any data counting stock, just inside a couple of moments by a little snap.

To guarantee the most extreme quality item reliably, they keep up at each period of the creation.

Control system including crude material testing, bundling, marking, in-process quality control,

testing of completed item, strength observing and documentation is kept up also. Partex look

after all these capacities to accomplish their objectives and to set a superior market position

among the Competitors.

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 References

Quality policy. (2019, August 2nd). Retrieved from Partex Star Group:
https://partexstargroup.com/corporate/quality-policy/

What is inventory management? (2019, August 1st). Retrieved from tradegecko: www.tradegecko.com

Appendix

Exponential Smoothing Calculation

Ft = Ft-1 + α (At-1 - Ft-1)

=394781+0.1*(354253-394781) = 390728.2

Md. Anisuzzaman Talukdar, Deputy General Manager (HR & Admin)

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