MEGAL STELPLAST

• Course Code : EPGP-11-105

• Course Title : Operations Management
• Instructor : Prof. Sidhartha S. Padhi
• Submitted By : Mr. YOGENDRA SINGH RATHORE
• Roll No : EPGP-11-129
• Section :A
 COMPANY OVERVIEW
• MSL was founded in 1995 by Anil Kishore.
• The manufacturing plant was located in mahipalpur, Delhi.
• The land was owned by the family and there was a lot of
unused space.
• MSL had improved its product and developed a network of
reliable suppliers.
• The Company’s horns were sold through wholesalers and
workshops.
• Selling price for horn was INR 150 and payment were
received within 60 days of supply.
• Average production was 15000 horns/month.
• Out of that 20% were branded as “MSL” and remaining
were manufactured for others
 CURRENT SITUATION
• As mentioned above, a family-owned business
known as MSL is a manufacturer of horns used in
automobiles. The company is seeking for
opportunities to perk up the current operations and
enlarge the company business as well. In addition to
that, the company is facing several issues that
include no brand name, unpredictable demand, non-
availability of information, high warranty returns, lack
of modern methods usage in manufacturing and non-
availability of skilled manpower. In addition to that,
MSL is also considering expanding in other cities of
India as well and for that MSL needs to have the
observance to authoritarian certification.
 CURRENT POLICIES
• MSL generally made its horns to order due to uneven demand.
• New workers were paid on piece rate basis and old workers
were paid on fixed monthly basis
• Inventory was maintain for 3000 horns. When the inventory fell
below 500, Company ordered for 3000 horns were placed.
• Main component copper wire was maintained as per
requirement.
• Offer a warranty for three years.
• Worker arrangement – 2 worker for Testing and 10 workers
divided on 2 workbenches on rotation.
• Plant Working– 26 days a month, 9 hours per day, lunch break
for 30 minutes and 2 tea breaks of 10 minutes each.
• Initial testing immediately, Final Testing will be after 4 hours of
assembly.
• Orders, Invoices, inventory and BOM were manually
maintained.
 FINAL PRODUCT
Total 3 types of items in BOM:
1. Component Items: 31 types (Buy)
2. Assembly items: 3 types of which 1 item (Buy), and
2 items(Make)
3. Final Product: 1 item (Make)
•Buy types items needs capital requirement so it is a
source of inventory.
•Make types items face bottleneck issues
All items also sub-divided into 4 group in given BOM.
1. Hardware
2. Electrical
3. Nuts & Bolts
4. Packing
 Process Flow Diagram
2 min 5 Final
1.1 Coil 3 Housing Assembly (4
1.2 Edge
Winding Assembly Min)
Cleaning
(2Min) (5 Min)

2.2 4
2.1 Burr Company Diaphrag
Cleaning Stamping m
2 Assembly
min (2 Min)
8 Final
9 Testing 7
5 Final
Packaging (Delay 4 Testing
Assembly (4
(5 min) Hrs) (2 (4 Min)
Min)
Min)
Current Manufacturing
Procedure
CALCULATION
 CALCULATION
Bottleneck : Housing Assembly and Packaging (5 min)
Effective Production Time : 490 Min (9X60 – 30 – 2X10)
Final testing performed 4 hours (240 min) after the unit is test
ready.
Production time of final test machine : 250 Min (490 – 240)
Cycle time : 5 min (Bottleneck : Housing Assembly and
Packaging (5 min))
First unit Comes out after packaging : 17 + 240 + 2 + 5 Min
= 264 Min
Second unit : 264 + 5 = 271
 Operation Time
• OPERATION TIME=9*60-50= 490 MINUTES
• GIVEN 3HRS=490+180=670 MINUTES

• CYCLE TIME= 670/108.615 = 6.1685

• MINIMUM WORL STATION = 28/6.1685 = 4.539

• OUTPUT RATE = 670/6.1685 = 108.615

• BALANCE DELAY = 2.8425/5*6.1685 = 350.6792
Thank you