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    EPGP 13C 095 - MSL Case Analysis

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    Sandip Kumar
    Meagal Stelplast produces horns and faces dilemmas about whether to focus on steady orders from OEMs or the replacement market. Their production process is unorganized and produces to customer orders. There are issues with manpower planning, material management, quality consistency, and resistance to new technology. Housing assembly and packaging is the bottleneck. The company could increase capacity and efficiency by shifting to an assembly line process, standardizing work, reducing manual labor, and improving layout, training, material management, and technology usage.

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    EPGP 13C 095 - MSL Case Analysis

    Uploaded by

    Sandip Kumar
    24 views9 pages
    Meagal Stelplast produces horns and faces dilemmas about whether to focus on steady orders from OEMs or the replacement market. Their production process is unorganized and produces to customer orders. There are issues with manpower planning, material management, quality consistency, and resistance to new technology. Housing assembly and packaging is the bottleneck. The company could increase capacity and efficiency by shifting to an assembly line process, standardizing work, reducing manual labor, and improving layout, training, material management, and technology usage.

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    EPGP 13C 095_MSL Case Analysis

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    Meagal Stelplast produces horns and faces dilemmas about whether to focus on steady orders from OEMs or the replacement market. Their production process is unorganized and produces to customer orders. There are issues with manpower planning, material management, quality consistency, and resistance to new technology. Housing assembly and packaging is the bottleneck. The company could increase capacity and efficiency by shifting to an assembly line process, standardizing work, reducing manual labor, and improving layout, training, material management, and technology usage.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    24 views9 pages

    EPGP 13C 095 - MSL Case Analysis

    Uploaded by

    Sandip Kumar
    Meagal Stelplast produces horns and faces dilemmas about whether to focus on steady orders from OEMs or the replacement market. Their production process is unorganized and produces to customer orders. There are issues with manpower planning, material management, quality consistency, and resistance to new technology. Housing assembly and packaging is the bottleneck. The company could increase capacity and efficiency by shifting to an assembly line process, standardizing work, reducing manual labor, and improving layout, training, material management, and technology usage.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    MEAGAL STELPLAST CASE ANALYSIS

    SANDIP KUMAR I EPGP-13C- 095 1


    The Dilemma in Meagan stelplast
    1. Whether they should focus in supplying horns to OEM as they provided a steady order for the
    whole year or continue with the replacement market .
    2. Whether they should expand factory in the available space within the premise or set up a
    dedicated facility for OEM s supply because it requires government accreditation and
    certificate to sell products to OEMs.

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    2
    The Current Practice
    1. Due to uneven demand followed made to order
    2. Old workers were on monthly pay roll while the new worker were paid on piece rate basis
    3. Inventory on an average was maintained for 3000 horns. When the inventory fell below 500,
    order of 3000 horns were placed, while copper was maintained as per requirements.
    4. They offered warranty for 3 Months
    5. For testing there were 2 workers while other 10 were divided on 2 work benches on rotation
    6. First testing was done soon after assembling and the final one after 4 hrs
    7. Practiced manual maintenance of orders, invoices, inventory and BOM

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    3
    •

    Observations
    Issues Descriptions
    Absence of Demand & forecasting The process is unorganized and not well laid out. Production is based on
    customer orders.
    Manpower panning is missing Utilization is not optimal . Everybody does everything
    Material mismanagement, cluttered The assembly parts were haphazardly laid out. This obviously leads to
    and unorganized poor material management and pilferage
    Inconsistency in quality Consistency in the quality of spares delivered by suppliers was
    highlighted as suspect.
    No inventory management Though there are no such space constraints and a healthy demand for
    horns, inventory is not being effectively used to cater to this demand
    Resistance in using new technology the workers are hesitant to change and are not very flexible. A lot of
    improvement can be achieved, if they are made to see the other side
    of the coin and encouraged to adopt change

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    4
    Bottleneck Housing Assembly and Packaging (5 min)

    Batch Size 30 Units

    Working Time ( per day) 9 hr

    Breaks: 30 min (Lunch), 20 min (2 tea breaks)

    Effective Production time/Day 490

    Final Testing performed 4 hours (240 min) after the unit is test ready

    Productive time of final test machine 250

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    5
    Batch Process Calculations
    Descriptions Time Remarks
    • It takes 7 minutes before final assembly starts
    17.00 and 10 minutes for final assembly + stud fitting +
    Cycle time Initial testing

    First batch comes out after packaging: 264.00 • Time till initial testing + waiting time + final
    testing + packaging
    Second batch: 281.00 • First batch time + cycle time
    Total batches in a day: 14.29 • [(effective production time-first batch
    time)/cycle time] +1
    Total no. of batches: 371.65 • 26 days * total batches in a day
    Total unit production (workbench1): 11,149.41 • Total no. of batches * Batch size
    Total unit production (workbench2): 11,149.41 • Total no. of batches * Batch size
    Total production capacity: 22,298.82 • workbench 1 + workbench 2
    Capacity Utilization: 67% • 15000/total production capacity

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    6
    Assembly line process
    Descriptions Time Remarks

    Cycle time: 5.00 • It takes 5 minutes for final assembly &


    packaging

    First batch comes out after packaging: 264.00 • Time till initial testing + waiting time +
    final testing + packaging
    Second batch: 259.00 • First batch time + cycle time

    Total batches in a day 46.20 • [(effective production time-first batch


    time)/cycle time] +1
    Total no. of batches: 1,201.20 • 26 days * total batches in a day
    Total unit production (workbench1): 36,036.00 • Total no. of batches * Batch size

    Total unit production (workbench2): 38,918.88 • Total no. of batches * Batch size * (1 +
    efficiency difference)
    Total production capacity: 74,954.88 • workbench 1 + workbench 2
    Capacity Utilization: 20% • 15000/total production capacity

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    7
    Conclusions
    • Housing Assembly & Packaging is the point of bottle neck.
    • Market demand should be identified first for OEM and replacement market. If the demand is higher
    than the capacity of the plant running batch process then it should be shifted to assembly line
    process to increase its capacity
    • Standardization in wok needs to be brought in, while manual work should be reduced. Pneumatic
    tightening machine should be used to assemble the horns
    • For expansion new works should be hired on per piece basis.
    • Instead of rotation of workforce, it is suggested that one person should be allotted fixed work that
    would increase the efficiency  

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    8
    Recommendations:
    • T​ he layout can be arranged into C layout , this will help in improving efficiency and reduce
    travel time and will further help in solving disconnected worker problem
    • Worker should be given training for using new technology , this would help in increasing the
    utilization of system
    • The available land can be used for increasing the capacity , increase they get OEM contracts.
    • T​ he material management can be improved by giving each worker the no. of parts required for
    the assembly. This would not only improve the material management but also reduce pilferage​.

    MSL CASE ANALYSIS SANDIP KUMAR I EPGP-13C-095


    9

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