T.I.M.E.

EUROPEAN SUMMER SCHOOL 2012

CORPORATE SOCIAL RESPONSIBILITY RESTRUCTURING THE ORION GARMENT AT THULHIRIYA INDIVIDUAL ASSIGNMENT BY

GAYAN RANTHARU ATTANAYAKE (OUSL)

1. What do I do at first?
As a consultant to the organization, initially, I will study the whole process of the company. Then plot a floor chart for easy understanding of the process. This will help to understand the critical areas which give high impact to the operation. Meantime, I will discuss with the each department for identification the Departmental Job Description especially with the HR department. It can be seen a huge malfunction of the EPF and ETF. This will lead to sudden close down of the factory by the Sri Lanka government due to short coming of Labor ordinance. So, immediate action has to be taken to settle the matter. Improve the hygienic requirement to the factory employees is much more important. I will set up a plan to improve the factory setup as per the Sri Lankas industrial regulations. Waste emission from the factory to the environment is a key factor while counting the efficiency of an organization. Its clearly seen that there are lot of waste has been dumped to environment which causes to spoil the neighborhood and the smoke emission cause to pollute the air. It is seen that there is a huge gap between the management and the workers. So, the low level employees were unable to communicate their issues to the higher level. This will cause to make a riot between employer and employee. Action has to be implemented on good communication within the organization. The work-load arrangement is not properly done in this organization. This is due to lack of forecasting by the supervisors. The workers will suffer by this in both mentally and physically. Considering the all above factors, it can be understood that even company is running and earn income, higher overhead has to be born on wastage and political support. These direct and indirect overhead can be easily minimized and help the employee by increasing their salary will be very much effective in both side Page 1 of 3

2. What do I do next? Considering those above factors, an action plan will be implemented. So, one team will be formed to start the factory restructuring program. This restructuring has to be done without any hiring of firing. Following members will be constituted with this team; Department Human Resources Finance Production ( Management) Quality Factory ( Employee) Operations ( Management) Short Name HR FIN PRD QTY FAC OPR No. of People 1 2 1 1 5 1 ( Engineering / Safety) person

Action Plan will be implemented as follows; No. What 1 Settling of EPF and ETF issue 2 Find out the salary structure of other companies and planning for salary adjustment 3 Improve the hygienic of the employee 4 Analyze the production process from start to end and identify the critical point where the higher waste occurrence and improve the yield 5 Re arrange the factory operating layout and improve the ergonomics to the employee 6 Extend the lunch room as per the BOI regulations 7 Waste material recycling and removal to proper locations 8 Control of toxic smoke emission 9 Costing and budgeting 10 Analyzing the budget and payback period 11 Training arrangement to employee ( Both Growth and Development of the people), personality development , career development, etc Who HR HR / FIN HR PRD OPR / FAC / PRD HR / OPR PRD/FAC /OPR PRD / FAC FIN FIN HR/ FIN When Immediately Within 1 month Immediately Immediately Within 1 month for proposal Within 1 month for proposal Immediately

After discussing with the team about all above, each action point must be in separate project. Each project schedule will be gathered and put in to Master Project. These project scheduling can be done with Ms. Project. By executing the master plan as per the schedule, most of the critical issues will be solved. Frequent monitoring has to be kept to improve the moral of the employee towards their job responsibilities. Changing the attitudes of the people is much more important. This will enhance the correlation between the Top level and the middle level.

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Mean time following advance methodologies can be implemented to push the company from another step ahead. Waste water treatment Energy audit and minimize the energy wastages (capacity bank, etc.) Environmental Protection License ISO standards Safety award Annual get to gather Insurance scheme to the employee Production incentives for achieving targets Competitive OT incentives Welfare society Health campaign for employee and neighborhood Employee training matrix for year Energy saving and Energy harvesting Building Management System (BMS)

I have visited some main garment industries in Sri Lanka such as Brandix, MAS, Cortould Tread. I experienced that these industries following the similar approach to enhance their production process. It took minimum 1 year to them for the conversion. I am sure this action plan will help to enhance this garment up to next level with a CSR company

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