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North South University

“Production Process and Management of Nirala Ball Soap”


Course: MGT314
Section: 08
Prepared For: Maruf-Ibne Wali
Prepared By:
Name ID
1. George Aldrin Ghosh 1410709030
2. Sakib Ul Alam 141 0370 030
3. Azwad Uz Zaman Morshed 1310189630
4. Mohammad Ehsanul Karim 1330472630
5. Nibrash Hossain 1331147630

Date of Submission: 16th April, 2017


LETTER OF TRANSMITTAL
April 16, 2017
Maruf-IbneWali
Lecturer
Department of Management
School of Business and Economics
North South University

Subject: Submission of report on “Production Process and Management of NIRALA Ball Soap”.

Dear Sir,
Here is the Group report on the “Production Process and Management of NIRALA Ball Soap”
that you asked us to prepare as a part of requirement for our MGT314 course.
In presenting this report, we have put our level best effort to include all the relevant information
and the explanation to make this report informative, vivid and comprehensive.
The report is prepared based on visiting factory, published reports, websites and other related
documents. Through our best sincerity, we have tried to uptake all the related issues in the report
within several limitations. We sincerely hope and believe that these findings will be able to meet
the requirements of the course.

Sir, thank you for believing in us and give us this opportunity. It was an overwhelming
experience to be your students.

Sincerely,
1. George Aldrin Ghosh 141 0709 030
2. Sakib Ul Alam 141 0370 030
3. Nibrash Hossain 133 1147 630
4. Mohammad Ehsanul Karim 133 0472 630
5. Azwad Uz Zaman Morshed 131 0189 630
ACKNOWLEDGEMENT

At first we are very grateful and thankful to the Almighty. We would like to thank our respective

course instructor Mr. Maruf-Ibne Wali Sir for assigning us with such a wonderful opportunity to

work on Lalbagh Chemical & Perfumery Works limited. We gratefully declare that without his

guidelines and suggestions it would not be possible for us to complete this report. We express our

profound indebtedness and gratitude to him, for his valuable advice that helped immensely in

preparing this report. Many of our fellow members and seniors from the company have helped us

a lot by generously supplying comments and information and giving us inspiration to work. We

have collected data from interviewing the Managing Director of the company, Mr. Masud Ahmed

along with published financial report. We have discussed and worked as a group and finally

prepared this report based on their production process.


EXECUTIVE SUMMARY

This report will discuss the evolution of Lalbagh Chemicals And Perfumery Works: how the
company was evolved, established and became one of the prominent companies in the undivided
British India. Firstly, I would like to give thanks to my honorable faculty member Mr. Maruf-
Ibne Wali sir for giving us such opportunity to do research. Without his help and guidance it
would have never been done.

Secondly, I would like to give thanks to my fellow group member Nibrash Hossain, for taking all
those pressure to make proper arrangements for the interview with the Managing Director of
Lalbag Chemicals, Mr. Masud Ahmed. Finally, I would like to name my other group members:
Sakib Ul Alam, Mohammad Ehsanul Karim and Azwad Uz Zaman Morshed for their restless
efforts to make this project.

At the end of this group project we will be able to identify the existing functional layout of the
Lalbagh group and identify their lacking. And based on their lacking on their existing process
map we would be able to give a recommendation on how they can make their existing production
more efficient and reduce the waste. We would be able to implement the tools that we learned on
the class from the Production Management Course and apply some of them to relate with the
actual production.

Regards,
George Aldrin Ghosh
# 141 0709 030
TABLE OF CONTENT
Page no.

1 INTRODUCTION 1

2 INDUSTRY OVERVIEW 2

3 COMPANY OVERVIEW 3

4 EXISTING PROCESS MAP 4

5 RECOMMENDED PROCESS MAP 8

6 RECOMMENDATIONS 9

7 CONCLUSION 12

8 REFERENCES 13

9 LINKS 14
INTRODUCTION

Soap and cosmetics industry is very big in Bangladesh. There are new brands coming practically every

day. Lalbagh chemicals and perfumery is one of the pioneers of soap industry in Bangladesh. They

started out in 1935 in a cottage and still going strong, although competitions are high nowadays. Nirala

ball soap and “Hash Marka” coconut oil are two of their most popular products. In this report, we are

going to go through the entire operation process of production of Nirala ball soap. We are going to

discuss the background of Lalbagh chemicals, their process map, lacking in their operations, their

efficiency, and recommended process map. We will also briefly discuss the overall soap industry and

learn about this industry.

Page 1
INDUSTRY OVERVIEW

In the old days, only a handful of local cosmetics company were in Bangladesh. Whenever we thought

about cosmetics, it was always foreign products. But in last 15 years, cosmetics and toiletries industry

in Bangladesh has been flourishing. In the late nineties, our local companies used to dominate 40

percent of the market, whereas now they hold 60 percent. This is a rapid growth. In last 15 years, local

brands have turned the industry into vital money spinning area. It generated a turnover of

approximately 150 billion taka. The key players in our industry are Unilever, Square, Keya, Kohinoor,

etc. according to a study; over 35 million households have made this market so lucrative. Thousands of

opportunities lie in cosmetics and toiletries industry of Bangladesh.

Page 2
COMPANY OVERVIEW
Lalbagh Chemicals and Perfumery Works is one of the prominent factories established by the Bengalis

in the undivided British India. The company was established by Hazi Abdul Khaleque back in 1935. At

the beginning the company was established in Lalbagh, the older part of the Dhaka City, from which

the company was formed named as Lalbagh Chemicals. In the beginning of it’s era the main operations

of the company was to import the coconut oil from Sri Lanka and then put it in bottled container to sell

it to the consumer. The operations were very simple and easy.

The company moved from Lalbagh to Tejgaon Industrial Area in 1961. At that time their basic product

was two items – (a) Pure coconut oil — Swan Brand which was later on introduced as হহাঁসহ হমার্হা নাররিকরল

তেল in Bengali, (b) Perfumed Hair Oil which was introduced as হগন্ধরিাজহ হনাররিকরলহ তেল in Bengali. Due

to the political ups and downs the company had seen so many changes in business over the time at that

time Lalbagh Chemicals And Perfumery Works was a leading company in East Pakistan under the then

Pakistani Govt.

Lalbagh Chemicals first introduced soap in their product category in 1966. It was one of the biggest

decisions ever taken by the management boards. Back in the past their soap was made in a non

mechanized way, which had excess caustic soda due to the use of tallow. Currently the company has

adopted technology where the level of moister inside a soap bar is controlled with computerized

automated machinates and tested in a lab before putting them for packaging.

Mr. Masud Ahmed took over the responsibilities of the company after his father Hazi Abdul Khaleque

passed away in 1976. Since then it is run by him who works as the Managing Director of the company.

Page 3
EXISTING PROCESS MAP

Page 4
Process map is a diagram that portrays a clear understanding of the process of a producing good. Lalbagh
Chemical produces their coconut oil and soap through several procedures. We are showing the process map of their
Nirala Ball Soap. They follow several steps to produce their soap. Through the process map, we are showing the
flow of processes of their different activities.

• Collecting the raw materials: After having a production target they start collecting the raw

materials. The raw materials for their soap are tallow (fat rendered from beef & mutton), palm

oil, and caustic soda (sodium hydroxide). They collect tallow from local suppliers. They collect

palm oil from the local suppliers of Chittagong in their steel containers and brings into their

production unit in Tejgaon, Dhaka.

• Bringing raw materials into production: At the beginning of the production they put the

mixture of tallow and palm oil into a big melting kettle for boiling. From the melting tank the

mixture is transported into a steam machine where vapor is sprayed. After boiling there, the

mixture is transported to a crusher for filtering. In the filtering process, the unwanted elements

from the mixture are removed.

• Mixing color and perfume: From the crusher, the outputs are manually transported into a big

feed tank. Into the feed tank the mixture is liquidized and color and perfume are mixed with the

liquid soap.

• Adjusting moisture of the soap: Then the liquid soap is transported into a vacuum dryer

through a pipe. There they adjust and achieve proper level of moisture of the soap. They get

powder of soap from the vacuum dryer.

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• Making soap noodles: Powder soap is frozen into -20 degree Celsius and they get the soap

noodles.

• Cutting into soap bars: Then the soap noodles are transported into an Italian 3step cutting

machine. There the soap noodles are mixed at first and then the machine give those the shapes

of soap bar. Every soap bars are same in size and quantity. The machine can automatically

measure the size and quantity.

Figure: 3 step cutting machine.

• Conditioning of the soap bars: Then the soap bars are transported into another machine where

the soap bars are dried and conditioned for stamping and packaging. This machine ensures that

the shape of the soaps are not damaged while stamping and packaging.

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• Stamping: Then a stamping machine stamps the brand name and other labels and tags into the

soap bars.

• Packaging: After stamping the soaps go through an automated packaging machine. The

machine automatically packs each of the soap.

• Cartoning: After packaging, the soaps are put into cartons by the labors of the company.

• Storing the cartons: Then the cartons are stored into the warehouse of Lalbagh Chemicals.

• Shipping: From the warehouse the cartons of soaps are shipped

into local distributors sprayed across the country. For shipping Lalbagh Chemicals uses their

own vehicles.

Page 7
RECOMMENDED PROCESS MAP

Page 8
RECOMMENDATIONS

• Use of JIT System: Lalbag Chemicals And Perfumery Works store the finished products in a

warehouse after the products are being produced. If they produce their goods before hand and

transport it to the distributors they can easily reduce the extra cost of maintaining a large

volume in the inventory.

• Lean Six Sigma Approach: After the goods are produced they do not compare it with the input

of the raw materials with the output of the finished goods. When they compare the input

materials with the output finished goods they will be able to find out the amount of waste on

each batch produced.

• Using the waste materials: After the goods are produced they don't use the raw metrials as a

2nd step input for the raw materials. As a result the incur a total loss on the waste materials.

When they will use the waste products as an input to produce more of their finished goods then

they will be able to minimize the waste and maximize the profit.

• Use of a flat functional layout: Their entire production house is build using the floors of the

building. So, once a process is completed they need to carry it down to a separate floor to begin

the next process which increases the inefficiency and lose of time.

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• Checking the quality of raw materials: They import their raw materials from the suppliers in

India and Sri Lanka. In order to maintain the quality of the finished goods they need to do a

regular checking on the quality of raw materials.

• In house packaging: Lalbag Chemicals And Perfumery Works sometimes have to stop their

production only because they need to rely on a 3rd party for their packaging materials.

Recommendation would be to build a separate in house packaging production plant so that they

can reduce the extra cost of packaging raw materials.

• Employing Skilled Personnel: Lalbag Chemicals don’t use an efficient personnel management

system as a result most of their employees who work on the line position have no skill with

education. Recommendation should be employing skilled personnel and managing them

adequately in order to reduce the waste.

• TQM Approach: The most critical problem to the development of Lalbag Chemicals is they

don't focus on their customer but they only focus on the product and the production. As a result

most of their products are outdated and not dynamic to the current trends. In order to maintain a

good quality Lalbag Chemicals should foucs on the customer demand, what is the trend in the

market and according to the trend they should focus on their production and try to improve it

continuously.

• Motivating The Employees: Lalbag Chemicals don’t provide any kind of extra pay for the

hard working employees as a result most of their production is falling behind. Even if a hard

working dedicating employee has the capability to run an extra mile he loses his patience due to

having no rewards.

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• Hygine Factors: Most of the production units are operated under unhealthy conditions. Which

affects the productivity of the employee. Recommendation is to introduce more ventilation and

conditioning in the production units so that employees don't get frustrated with excessive heat

which emits from the production.

• Hiring Specialize Worker: This is a great approach to employ an expertise and evaluate the

productivity. Lalbag Chemicals don’t appoint any specialize expatriates to develop their

existing production units.

• Providing Extra Facilities to Employees: Providing extra facilities such as medical benefits,

paternal leave and retirement pension plans would motivate the employees more to dedicate

themselves in work.

• Implementing the ERP system: ERP, is a large-scale software program designed for modern

businesses, both large and small. Lalbag Chemicals should implement the ERP system to make

their production more efficient.

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`CONCLUSION

Nirala ball soap is the oldest soap company in Bangladesh. But now in recent times, its popularity has

decreased over the time due to lack of proper management, marketing

and attractiveness. Nirala ball soap wastages a lot of time in between

sections of the production and its production system is also complex. A

lot of new soap companies are emerging nowadays. In this competitive

world, we should not waste time as time is money. Also the process map

should be the best one which will cost the least. So in order to meet the

demand of this changing world companies should focus on making the

cost low as possible keeping the desired quality. Only then it will be

beneficial to the company, to the customers and also to the nation.

Figure: Nirala Ball Soap.

Page 12
REFERENCE

Page 13
LINKS:

http://print.thefinancialexpress-bd.com/2015/08/21/104800

http://jbbc.co.jp/wp-content/uploads/2014/08/A-Report-on-Cosmetics-Toiletries-Industry-of-
bangladesh.pdf

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