Abstract

This assignment is focused on the manufacturing process of a company and aim of this report is
to analyze the real encounters of operations management theories for the operations in the
business sector. In order to have a solid background on the above mentioned concept the leading
cosmetic manufacturing company located in BOI zone in pallekale was subjected to our through
observation and discussion. We visited the company premises and gathered relevant data and
information by interviewing the production manager by observing the factory functions. By
analyzing the data gathered it was identified that there were both strengths and weaknesses in
applying the operations management theories by the 4ever skin Natural (pvt) Ltd. The report
concludes with recommendations for the improvement of the process given according to best of
our knowledge.

Acknowledgement

This report is regarding the Group assignment under Operations Management subject which is
done by nine group members of Department of Business Information Systems.

We specially thank Mrs.ChandaniBandara,Chairmen of forever Skin Natural Pvt ltd. And also
chief executive officer, Production manager, and all staff for the kind cooperation gave to us.

We are equally thanking Mrs.Nithya Parameshwara, our lecturer for Operations Management
subject for guiding us for this project.

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Contents
1 Introduction ..................................................................................................................................... 1
2 Company Background ..................................................................................................................... 2
3 Operations Management in practice ................................................................................................. 4
4 Production process of the company .................................................................................................. 5
4.1 Raw Materials .......................................................................................................................... 6
4.2 Blending .................................................................................................................................. 6
4.3 Filling Division ........................................................................................................................ 7
4.4 Labeling Division ...................................................................................................................... 7
4.4.1 Printing Section ................................................................................................................ 8
4.5 Packaging ................................................................................................................................. 9
4.6 Ware House ............................................................................................................................. 9
4.7 Quality management.............................................................................................................. 10
5 Recommendation ........................................................................................................................... 10
6 Conclusion .................................................................................................................................... 11
 1 Introduction

Company which we selected to analyze has a sounds background in Cosmetics industry in Sri
Lanka which is a reputed company within Sri Lanka. The proprietor of the company was the
most inspiring fact of the company. Forever was founded in the year 2006 by Mrs. Chandhani
Bandara, one of Sri Lanka's leading hair and beauty experts, 4rever is now one of Sri Lanka's
largest herbal based cosmetics manufacturers. Backed by a strong and dedicated management
team of professionals, 4rever was able to grow exponentially within a span of only six years.
Currently, 4rever covers island wide distribution working seamlessly with its sales team with a
product portfolio of over 70 products; 4rever has now entered the international markets in Asia
and Europe by introducing its own brand “4rever Skin Naturals". With its state of the art
production facility, it now offers OEM facilities to any persons or companies looking to get their
cosmetics requirements manufactured under their own brand name. 4rever hopes to expand its
product range even further, bringing about its new range of color based cosmetics products in the
future.

4rever has now grown into a group of companies consisting of its own Salon Chains across the
island, SPASs and its own slimming tea brand “Dioli”. Also, The Hair and Beauty Institute
offers recognized local, UK (City & Guilds) and Australian (Reach for Australia) qualifications
with courses tailor made to suit students or beauty enthusiasts alike.

Forever uses only 100% natural herbal ingredients, making it one of the healthiest, safest
cosmetic herbal brands around. 4rever is committed to using only the best natural ingredients.
The company sources all its natural ingredients locally and only from certified spice gardens and
out growers.forever Skin Naturals (Pvt.) Ltd, the fastest growing herbal skin care organization, is
constantly in the lookout to increase its global presence

Vision

We need to be “the best oriented cosmetics producer in Sri Lanka”. In becoming so, we must
make our place well known and recognized not only with the quality of products/services we
offer to customers/community but also with the quality of services provided to our staff

Mission

To be the most admired herbal based cosmetics manufacturer in next ten years lotion

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 2 Company Background

Forever Skin naturals (pvt) Ltd is a Manufacturing organization which is the birthplace for a
wide variety of beauty products. Currently the pilots of the company are Mrs. Chandani
Bandara(chairman) and Mr. Priyantha Abeyrathne(CEO)

The production plant which was received the BOI status in year 2010 is located at the BOI zone,
Pallekele. The production plant is powered by ultra modern production facilities which can be
used to manufacture several batches of more than 10000 tubes of beauty creams.

Figure 1:Map , BOI Zone Pallekele Figure 2:Production Plant

Production Line of the company is very attractive which is able to attract large range of
customers who seeks for beauty products. Some of the products of the company is

• Face Wash (7) • Gels (4)

• Cleansers (3) • Cream & Lotions (7)
• Skin Toners (3) • Manicure & Pedicure (2)
• Face Scrubs, Masks & Packs (11) • Body Wash
• Fairness Creams (6)
In addition to above products the latest green tea brand of their own and the Dioli aloe vera cool
drink are at the very beginning of their life cycles.

Figure 4: Green tea Figure 3:Dioli aloe Vera drink

AWARDS

• Ayurvedic Registration Certificate

• ISO 9001; 2008 certificate
• GMP Certificate
• Star Award 2011 (Best Performing Entrepreneurs- Central Province)
• Women entrepreneurs of the year 2011
• Star Award 2012 (Best Performing Entrepreneurs –central Province
 3 Operations Management in practice

In forever they have applied some certain procedures and methodologies in manufacturing
process. Manufacturing process is done according to the methodologies of batch processing.
They have used batch processing as their process flow structure to reduce initial capital outlay
(the cost of setting up the machines) because a single production line can be used to produce
several products.

The location of the factory has been selected wisely to overcome the difficulties of collecting
raw materials and they have located their factory in the BOI zone thus they have able to reduce
overhead cost.

Forever currently following total quality management as a method of managing the quality
throughout entire organization. They follow following principals to maintain TQM.

.
❖ Top management of forever continuously providing leadership for quality.
❖ There is a proper communication flow throughout the organization to maintain quality.
❖ Quality is defined by customer and forever first priority is given to customer. They
provide products that required by customer. And they only use healthy natural materials
to protect customers from side effects
❖ Employees of all level are responsible for quality
❖ Forever strategic plan has prepared by focusing quality.
❖ All function of organization focus on continuous quality improvement.
❖ Use statistical quality control methods to control quality.
❖ Implement training programs about quality
 4 Production process of the company

Even though they have number of products in product line each products have same production
process. Only materials are changed. Production process contain blending, filling, labeling, and
packaging. Quality department take sample from each process. If the sample unable to face the
quality criteria have to reproduce.
4.1 Raw Materials

“4REVER”, one of the best in the world when it comes to herbal beauty products, uses 100%
natural active herbals in all the products like Extracts of Gotukola, White Sandalwood, licorice,
Aloe Vera, Venivel, Margosa, Cuscus (Savendara) which were used in ayurveda over thousands
of years for beautification and longevity

4.2 Blending

They use several formulas for blending purpose. They maintain specific formulas for each and
every product. Their products have independent demand. Based on their demand estimation, they
calculate raw material requirement. And they maintain different quantity vassals. As example
1000kg, 2000kg. Based on raw materials bulk they select vassals. They use different UV purify
waters. And also they use homogeneous machines. In this section they use two main machines.
After blending they transfer mixture to a huge vassal. To maintain quality, quality assurance
department take sample to check the quality. If the mixture is in within the parameters they give
quality tag. And they keep mixture in a vassal until they used for the filling.
4.3 Filling Division

They have half manually machines for the filling, in here they manually load the tubes to the
machine & auto fill manufactured product in to the tubs. Then it seal & cuts unnecessary parts of
the tubs by machine & get filling tubs out of the machine.

As an example if they fill 100ml to the bottle they input that data to the filling machine and
according to a time the manufactured products are filling to the bottles. Speed of the filling
depends on the experience of the worker who operates the filling machine. To check the quality
of filling section, quality control department takes samples for quality control process.

4.4 Labeling Division

Input of this section is filed bottles and tubes that transferred from the filling division without
labeling. As a quality control method they use transfer notes according to the ISO documentation
when transferring products from filling department to labeling department. In here they follow
ISO as well as the GNP also.

E.g.:

According to the GNP,

When we enter to the labeling division we must bind our hair
We must remove the shoes and etc.

To indicate that the products are semi-finished products they use yellow colour tag. Though they
are filled products they are not finished goods. Therefore to ensure that the products are hold
product they use such a kind of tag. There are two labels in the product as front label and back
label. These labels are manually loaded to the products.
4.4.1 Printing Section

Price, expire date, manufacturing date, batch no , Product ID and other details relevant to the
products are printed by using semi manually machine that called as coding machine. Two
workers are worked with coding machine to check whether the coding has happen properly.

In here they enter the appropriate data to the coding machine and by using high voltage
techniques they print the data in the bottles and tubes.

If there any error in printing they use special liquid to erase that printed data and this is done in
manually. After that those products are put to the coding process again.

Then they do the final checking for the all finished goods whether they are in expected condition.
In the finial checking they check many areas such as,

If there any bottle damage

If there any lid damage
If there any printing mistake (whether they are printed correctly or not)
If there any label damages or mistakes

They do their all activities according to the working instruction and each and every division
working instructions are displayed in the walls in their divisions. This is done according to the
ISO certification. There are step by step instructions in the each activity of the process.
4.5 Packaging

In here they use primary package and secondary package to do the packaging.

E.g.:

Bottle Primary Package

Box (that the bottles are stored) Secondary Package

When they deliver the products to the local market, they use special box called corrugated box to
store finished goods. This box is manufactured by using special boards and that board has three
layers. It is design by using three hard papers. Paper called corrugated layer is covered by other
two hard papers. Bind them all together finally they make the box. Therefore it is called as three-
ply corrugated box.

After they store final product to those corrugated box they attached sticker called Outer Carden
to that box including the details of product, product ID, Batch no, what is the pack size, expire
date, code and etc.

Before this finished products deliver to the market, there also they attached special tag in green
colour that display QC OK. These tag indicate that finished goods are suitable to use by the
customers.

4.6 Ware House

As they are ISO 9001-2008 followers they should use the ISO requirements in every condition.
According to that in the ware houses they used plastic panel to the floor areas to avoid the
damages to product when those are in the floor areas. When we enter to the stores there should
be ability to identify each and every product separately according to the ISO requirements.
Therefore they used well-mannered stored system in the ware houses.

Not only that there also some requirements when they store the products in the ware houses.
Apropos to the product stacking rule they can’t stack more than 6 boxes for the one line. Because
if they load lots of box to one line it may badly effect to the box which is in below the line. The
box in below should able to tolerate the pressure and weight that comes from the above boxes. If
not may harm to below box and the products in that box. This product stacking rule is change
according to the kind of product and it is depend on,
 • Weight of the products
• No of products in the box
• The type of the container (whether it is tube or bottle)

According to the ISO there are parameters to packing stacking and every activity in the factory.

4.7 Quality management

According to chairmen of 4ever Company quality is not only customer satisfaction but also
maximize the customer satisfaction without any side effects. Since they work in a cosmetics
industry customer satisfaction may be become fair within short period. But chairmen of 4ever
think quality is not only become fair within short period but also become fair without any side
effects. And also management of 4ever think quality must satisfy both actual and perceived
needs. And also they consider quality as an order winner. To achieve quality management of the
4evr company is following TQM. They use quality as a one of the competing priorities. Two
foal goals of following TQM are to ensure, careful design of the product of the service and the
organizations systems consistently produce the design.

5 Recommendation

• They maintain their containers store in the upstairs of the factory and all the
production process are done in the down stair of the factory .Therefore if they are
able to establish and maintain their container store in the down stair as well they may
able to save their cost and time both in more efficiency manner.

• Already they have job rotation procedure in the company. In this situation
employees haven’t long time experience as well as the unable to specialize any
production sector. But specialization may be a considerable contribution for
efficiency of some production line.

• Instead of using higher on of labors to the production process they can increase no of
machine to reduce the delay and cost of the process.
 6 Conclusion

4ever is a well-known brand name in cosmetics industry. And it is a labour intensive company.
They follow cost, quality, and flexibility to compete with competitors. They highly focus on the
quality of their products.

Their product line is face wash, cream, nail polish, and remover. In addition to this they produce
green tea by diversification their product line to reduce their market risk. They export cosmetics
to foreign countries as well.

When we analyzing their plant we were able to identify that they are following TQM. And they
follow fish born theory and also they follow PDCA cycle.

And also they follow ISO 9001-2000, GMP. And currently they are planning to get ISO14000.
To achieve ISO 14000 they are planning to implement waste management system.

According to the issues that we identify in the factory we would like to give some suggestions as,
we can give maintain suggestions box to identify quality problems from workers, use more
machines for production.

References
• Web page- http://4everskinnaturals.lk
• Hill, Terry, Manufacturing strategy: Homewood, III, Irwin, 1989.