assignment o2
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also wholly owned subsidiary of the company, was incorporated to
ac!uire tile manufacturin factory at 7oran and has recorded a pro8t
of Rs. 9%% million for the year. Royal Ceramics *istributors (Pvt) Ltd is a
wholly owned subsidiary of Royal Ceramics Lanka PLC has recorded a
loss of Rs. %14,''' durin the year under review. $his subsidiary
company:s operations were transferred to the parent company durin
midyear ended % st -arch 0''9.
Rocell ;athware Limited, is also a wholly owned subsidiary of the
company, was incorporated to manufacture and sell sanitaryware
products to local and export market, has recorded a loss of Rs. %%
million for the year.
;y the time it expanded its business, it created a brand for its priced as
5Rocell6. $oday this brand name has ood personality and it has
captured 8fty 8ve percent (44<) of the #ri Lankan market and exports
to numerous countries across the lobe. $he market of operation of
the company done throu h the stron distribution network comprises
of ' show rooms and three (' ) warehouse that were located instrate ic area in #ri Lanka. Recently the mana ement decided to open
its show rooms in =orth and east province. / >easibility study is bein
conducted to do it in /mpara, $rincomalee, ;aticallo, "avniya and
3a?na. -ost probably mana ement think the company could explain its
business there with 5@thuru Aasantahaya6 and 5=e enahira
=awodaya6. 7ow they predicted is on their expert knowled e in
analy2in the future economy.
>urther, $he -ana ement o?ered to Ceylon theater for the companies
which producin ceramic tiles, to et controllin power of the -ain
competitor, Lanka $iles PLC, Lanka Aall $iles.
;efore we analy2e the mana ement system, it is re!uired to mention
about the 8nancial situation of the company. $his is because, these
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8nancial 8 ures are the measurements of e?ectiveness & eBciency of
the mana ement practices done by the company.
+ven thou h, the company faced to an economic crisis in the later part
of the 8nancial year 0'%0 0'% , Rocell reported Rs.%.D billion net
pro8ts remarkably, while recorded pro8t of Rs. %.0 billion in
0'%% 0'%0.
In any or ani2ation, plannin is a critical mana ement activity
re ardless of the type of or ani2ation bein mana ed. $his is not
common for pro8t or ani2ation but common for every or ani2ation like
non pro8t or ani2ation, defense forces etc.
$his company has established its vision & mission speci8cally. $hat is
Vision
“ To continue to be the leader in the surfacing industry locally
& to enter and impact the global market. ”
$his vision has said its dream of the future of the business deeply
embedded in the mind of founders.
Mission
“ To o er state of the art surfacing solutions to both the home
and commercial builders with products and services that
transcend the highest quality, ensuring customer satisfaction
by matching all expectation, growing the market by way of
product innovation, thereby enhancing share holders wealth,
developing human resources to excelling latitudes such that
Royal eramics exudes a stance of excellence!
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-ission has clearly said and identi8ed scopes of the business operation
in product and market terms. Its maEor product is providin surfacin
solution. +ven thou h this mission statement talkin about surfacin
solution, in 0'' , the company started its business to provide total
sanitaryware solution to the #ri Lankan customers as a fully own
subsidiary of Royal Ceramics Lanka PLC and under Rocell brand. $hat
company is called Rocell ;athware (Pvt) Ltd. Ahen we analy2e the
vision & mission statement of the mother companyF set up by its
founder, the time has come to chan ed it. $his occurred due to
chan in of the mana ement. #even years a o, the present
mana ement has taken the mandate power havin ac!uired more than
4%< of total shares issued to appoint directors to take direct decision
as their desire. $he new mana ements view is very broader than the
previous. $hey wanted to expand the business within ceramics industry
without limitin it to the tiles.
In other point of view, even thou h this subsidiary is fully own by the
RCL PLC and controlled by the same corporate mana ement, it has aseparate company and have a le al personality. $herefore the Rocell
bath ware Ltd (R;L) has separate vision & mission statement.
/ll products made by these three were distributed by its show rooms.
$hese show rooms were located strate ically to expand the market
share. / show room mana er is appointed to each show room with at
least three assistants. =umber of assistant may defer on number of
transactions done by each show room. +ver customer can buy any kind
of tiles and bathware at any time from these show rooms.
=ow we have a !uestion what sort of tile we produce and sales and the
total !uantity of each cate ory. $herefore the company needs to do a
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market analysis. +ach and every month the top mana ement
summoned all key people in the mana ement. $hen they are
!uestioned about their ideas information about the market, customers:
expectations, what competitors do , barriers and diBculties and so on.
$his meetin is called *esi n Review -eetin . In mana ement these
types of meetin fall into the cate ory of #;@ pans. *oin all these
thin company prepares the production plan. It is not a simple task.
>irst it is needed to decide the desi n of the tiles. $herefore to prepare
the ;ased on the company "ision and -ission statement of the
company, mana ement sets its obEectives and strate ies. ;efore we o
throu h the plannin process it is re!uired to explain about the
or ani2ation structure of the company. $hen very easily you can
understand the plannin process of the company.
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Organization Structure
6
CEO RocellBath ware LTD
Chairman
Vice Chairman
MD
Board of Director
!ead of"actor# RBL
!ead of R$L"actor# Com%le&
!ead of RCL"actor# Com%le&
!ead ofTechnical
!ead of 'ale( )dmin
!eadof *T
!ead of)+dit
) t, "actor# Mana-er.$rod+ction
DirectorM-t ( 'ale
) t, $rod+ctionMana-er
M-r$lannin-
M-r /C (R(D
M-r!RM
'howroom M-r
) t,'tore M-r
"actor#)cco+ntant
'ection*nchar-eMillin-
'ection*nchar-e .$oli hin-
'ection*nchar-e. 'ortin-
'ection*nchar-e
. 0iln
'ection*nchar-e. $re
$rod+ctionE&ec+ti e
$rod+ction'+%er i or /C
'+%er i or !R) t
!R) t
'tore0ee%er
'tore0ee%er
/)E&e
'toreE&ec+ti e
!RE&e
'how room) t,
$lannin-E&e.$rod,
$lannin-E&e
Deli er#
$lannin-E&e
E&%ort
)ccOfficer
)ccE&e
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I Eoined Royal Ceramics Lanka Limited >actory located at +heliya oda,
% as a -ana ement $rainee. I was assi ned to Guality Control
*epartment of the factory. ;y % 1, I have been promoted to /sst.
Guality Control -ana er, /s the /sst. Guality Control -ana er, main
task was to desi n development, process Controllin and *ocument
preparation for I#H ''% certi8cation.
$he eneral -ana er assi ned me and another executive oBcers to
prepare a feasibility report on Interbatch Porcelain >actory located at
7orana. Ae have had taken month to prepare the feasibility report.
$he ;oard of *irectors decided to purchase the former Interbatch
Porcelain >actory which was bankrupt, based on the recommendations,
/fter the purchase of RPL (>ormer Interbatch) I assumed duty as
Guality /ssurance and R & * mana er of the Plant.
-ain $ask was to Implement Guality Control #ystem and develop =ew
$iles to compete with Lanka $iles and Hther Importers. *urin the
period, $rainin Pro rammes on $estin and Guality Controllin and
uide lines for Production #ta? were conducted.
In 0'' , $he -ana ement decided to assi n me as the Production
-ana er which was vacant due to promotion of Production -ana er as
the >actory -ana er. /s a new comer to production mana ement, I
had to study function and technical details of all machinery in the
factory which was very diBcult task. 7owever, I could mana e the
Production with the machinery which are havin lot of breakdowns, as
a result, lot of downtime were met. $he top mana ement decided to
up rade the technolo y with modern machinery and knowJhow.
)fter %romotin- to ) t "actor# mana-er $rod+ction * coordinated all de%artment +ch
a +%%lie Mar etin- *T $lanni- and !+man re o+rce al o,
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) %er the deci ion ta en # the o%eration committee meetin- on 2778 * ha e een
tran ferred to Rocell Bathware for i& month to im%lement a etter %rod+ction control
# tem in the %lant a the #ield wa er# low, D+rin- that %eriod M# main ta wa to
+ild a team wor within the e&ec+ti e taff which wa er# diffic+lt a the "actor#
Mana-er and $rod+ction Mana-er of Rocell Bathware were er# e&%erienced officer
from *ndia,
!owe er d+rin- thi %eriod * learnt lot of technical matter while wor in- with the all
the taff incl+din- floor le el wor er ,
)fter ret+rnin- ac to R$L factor# Mana-ement decided to a i-n me a the main
coordinator for im%lementation of ER$ # tem for the -ro+% a * wa the onl# %er on
who had e&%erience all three %rod+ction "acilitie , To %re%are central in entor# # tem
within the -ro+% * had to %re%are codin- tr+ct+re for 9eneral 'toc a well a "ini hed-ood for all three %rod+ction facilitie o a to minimi:e the in entor# co t , On 22 nd
)%ril in 2713 Rocell la+nched oracle a ed ER$ # tem and * had to in ol e all codin-
toc alancin- and cond+ctin- trainin- %ro-ramme for all + er in factorie and
howroom ,
)fter the )+-+ t in 2713 m the mana-ement ha rea i-ned me for R$L $rod+ction
$roce a the efficienc# and achie ement were low d+e to technical rea on ,
$lannin-
$re%aration of Monthl# tar-et for the factor# and detailed tar-et for each %rod+ction line,
$re%aration of $rod+ction tar-et for hift.wi e to minimi:e r+nnin- of machiner# d+rin-
%ea ho+r to red+ce the electricit# con +m%tion for the machiner#,
)nal# e the dail# %rod+ction and /+alit# achie ement in each de%t which effect to final
%rod+ction achie ement , )nal# e the rea on if the de%t doe not meet the tar-et and
ta in- correcti e action for the technical matter and allocation of re;+ired e&%erti e for
effected area, Relea in- of ome machiner# to en-ineerin- de%t to carr# o+t maintenance
wor , )nal# in- the re<ect rate of tile at the %rod+ction line and -+ide rele ant officer
to minimi:e wa ta-e in each ta-e of %rod+ction, Orderin- all %rod+ction con +ma le
which im%ort from *tal# '%ain and China and maintain +fficient toc , *n thi ca e the
chec in- and a%%ro in- of the technical drawin- of %reci e *tem +ch a Die and
=
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Mo+ld i com%+l or# to a oid an# de iation of the %rod+ct , The toc of +ch material
ho+ld e +fficient for at lea t 3 month , $lannin- %rod+ction %roce o a to maintain
minimal chan-e which chan-in- the %rod+ct to e chan-ed, -ain $ask is to
monitorin the Production and Guality /chievement of the >actory.
/part from that, I have responsibility to allocate Eunior executive to
each and every department so as to uplift their knowled e on the
production process and technical matters.
I facilitate my subordinates for their all production related functions
and if necessary, I propose and et approval for some kind of
instruments and machinery which not exceed ''' usd. ;ut, it is
re!uired to prepare the cost bene8t of the instrument or the machinery
which has to buy. #ometimes, materials have to be taken from any
factory within the roup.
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Or-ani:in-
Hnce a year, the $op -ana ement instruct all relevant mana er to
prepare the bud et for forthcomin year. $he Plannin dept prepare
the market demand of tiles and distribute amon the mana ers. -y
responsibility is to prepare the production bud ets for all consumables
considerin the data iven by the Plannin mana er. Ahile preparin
production bud et, annual shut down of the machinery are also
considered, as some essential maintenance works should be
completed. /ll mana ers in the plant are prepare their bud ets as per
the uide lines iven by the mana ement and plannin dept.
/ll sectional executives are responsible for smooth function of relevant
dept and they are authori2ed to carry out all maintenance and et
assistance of supportive dept, with my knowled e.
Leadin
Conductin daily production meetin with all sectional in char e,
propose most important points to considered. /nd most of 3unior
+xecutives are new comers to the ceramic industry, in line trainin on
trouble shootin s and demonstrations to identify causes, are beinconducted. >or identi8cation of causes and points in production lines,
they should be calm and close inspection for lon time at a point.
Controllin
>urther, I look after all technical matters even if it is a responsibility of
Guality /ssurance dept (Process Controllin ) as I had an experience in
Guality /ssurance dept on Process Controllin , *esi nin of tiles and
$estin of /ll inspection points.
>urther, /s the Production mana er who experienced in Guality
/ssurance dept, I used to investi ate the causes for the various defects
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which come across while production is oin on even thou h it is a
responsibility of Gauality /ssurance -ana er. >or this, >loor level
workers, 3unior +xecutive and mana ers in relevant department are
participated for identi8cation of causes usin statistical techni!ues
such as pareto dia ram and cause and e?ect dia rams.
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$he 8nancial year of the company starts form /pril and end with
-arch. +ach & every year, in the month of 3anuary, the top
mana ement informs to relevant heads to submit them, their roup
(divisional plan). Ahat they do is, the heads of each division call
his her all mana ers to submit their individual departmental plans.
$hereafter, the mana ers & the head of the division prepare a plan
to ether with. $hen those plans are discussed with all divisional heads
& top mana ement. /t the 8nal sta e, they 8nali2e the plans for the
company. $his plan is called cooperate plan. $his plan consists of
;usiness Plan, Capital +xpenditure Plan and 7uman Resources Plan.
Ae can overlook the above activities in theoretical aspect. $he
ultimate plan the top mana ement produced is the corporate plan.
/fter cooperate plan was prepared they communicate it to the heads of
each division. +ach head of division communicates plans what they
received form to mana ement to their mana ers. >urther I could see
another plan called strate ic business units plan. $hey had prepared a
plan how to compete with low !uality, low cost imported tiles available
in the market. /s you all know, there are so many such sort of tiles are
available in the market. $he most of the customers do not considerthe !uality and the desi n of the tile. $hey still pay their attention to
cost. Conse!uently it a?ects to drop our sales volume drastically.
$herefore the #;@ unit of the company which comprises of senior
mana ers who came from various disciplines is assi ned to prepare
their strate ic plans to face this competition. $hey had decided to
produce a low cost, ood !uality tiles by usin reen basedF waist
powder in the normal production, but can be used to mix with powder
which can be used to produce ood product to certain ratio. Presently
it has been marketed, and now it is on developin sta e of its life
cycle.
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/s the Productuon -ana er, my role is to produce production bud et
for the year with the help of Production +xecutives in each dept. >or
this purpose, analysis of Past Production and yield as well as
consumption of all materials are considered.
/fter the 8nal bud et which have been approved by the $op
-ana ement, Production Plan for each production lines are prepared
to ether with Plannin -ana er. >or this purpose, the Plannin
-ana er analyse the past sales of tiles and sales forecast for some
times for forthcomin month. >or this, my responsibility is to assist
Plannin -ana er to prepare the Production Plan, considerin
constraints in the factory.
/s I early mentioned, the functional plans made by the mana ers its
superiors, they prepare the operational plans to achieve their
obEectives. 7ence they have clearly mentioned the policy, procedures,
pro rams, proEects rules & re ulation. >or instance, we take the
operation plans of production. It says what sort of body material they
should use, technical speci8cationF cycle time, temperature number of
labor, #eries of steps of producin a tile, what sort of thin should bedone & not should be done, the expected cost per tile etc.
$he operational plans can be divided into two as sin le use plan &
standin plans. In this economic recession, our company had to stop
its production. #o that the cost of labor was a burden factor. $hen
mana ement plan to ive them volunteer retirement scheme. It was
used only one time. #ometime it may be used one another time in the
future. $his type of plans called sin le use plan. #tandby plans are the
plan what is explained early. >or example plans that consist of the
procedure of makin tile.
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In the plannin process, you may think that the company has not
followed the plannin process. ;ut plannin process has been used
exactly as it is. Ahen individual departmental plans come form
bottom to top, the top mana ement prioriti2es their obEectives. 7avin
selected the best ways to achieve the obEectives and they make the
action plans. Ahat lower level mana er did is puttin plans into
action. If you o throu h the above detail it clearly shows how
plannin process is oin on.
/s I early explained it clearly shows or ani2ational chart of the roup.
$herefore here I speci8cally explain about the or ani2ation structure &
the or ani2ation chart of Royal Ceramics Lanka PLCF the mother
company. $here are seven elements are re!uired to discuss with
or ani2ational structure. $he maEor Eob of the company is producin
ood !uality tile of a lower cost & distribute to the customer with
pro8t. Hne employee can not produce a tile completely. $herefore the
maEor Eob are re!uired to divide into small & simple Eob in which each
worker can speciali2ed and havin them perform such simpli8ed Eobs
repetitively and continuously.
*ivision of labor and work speciali2ation
%. Producin a $ile
a. Collect raw materials
i. Aei hin Raw material
ii. -ixin raw material
iii. Loadin Raw -aterial
b. Preparin Powder
i. Aei hin -aterials & Loadin ;all -ills
ii. Hperatin ;all -ills and unloadin slip
iii. Hperatin #pray *rier and loadin to silos
iv. Powder -ixin
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c. ;uildin a Raw tile
i. Hperatin Press -achine
ii. Hperatin "ertical 7ori2ontal drier
d. /pplyin la2e
i. Hperatin la2in /pplication -achine
ii. Hperatin printin -achine
iii. Hperatin Loader ;ed -achine
e. >irin Kiln burnin tiles
i. Inspection of feedin point
ii. Hperate the Panel ;oard of Kiln
iii. Inspection of tile out point
iv. $ile loadin
f. #ortin ood $iles
i. $ile Loadin to the #ortin Line
ii. Guality checkin
iii. #ortin $iles
iv. Hperatin #tacker -achinev. Packa in
vi. @nloadin to palette
. la2e -akin
i. la2e Preparation
If we take the task producin tile, it is divided into at least seven tasks.
/ssume that we take powder preparation. $his Eob can not be done by
one employee. It is also divided into further four ( ) Eobs as wei hin
materials and loadin ball mills, Hperatin ;all mills and unloadin ,
operatin the spray drier and loadin powder to silos and Powder
mixin . $his Eob is a collection of few task and duties. $hen employees
are assi ned to each Eob. Likewise all the above sub tasks that is
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twenty three are assi ned twenty three employees to cover the duty.
$his is a continuous production system. $herefore each Eob is assi ned
four employees to cover up ei ht hour three shift per day and to cover
the day o?. Ahen those employees do the same Eob over and over
a ain continuously they take work speciali2ation. Ahen we consider
these seven maEor tasks and sub tasks as a whole it is called as the
Production *epartment. ;asically, the base of departmentali2ation is
functional basis. Hn the functional basis the other departments are
Plannin *epartment, Guality /ssurance & Guality Control *epartment,
7uman Resource *epartment and >inance *epartment.
$he third element is chain of command. $he or ani2ational chart
clearly shows the se!uential arran ement of position on the basis of
level of authority. It is unbroken line of the authority that extends from
top of the or ani2ation to the lowest level clarifyin who reports to
whom. Its need to say that, even thou h there is a chain of command,
most probably the lower level oBcer directly report to a top or senior
mana er. #ome time to the mana in director. >or example the 7R
mana er has the power politics to by pass his all immediate superiorsand to report to -*.
In mana ement the number of subordinates who report to a mana er
is called span of mana ement. In each and every department, there is
a mana er. /ccordin to the number of position, the span of control
may defer one department to the other.
It we take production department, the span of mana ement of
production mana er is six. $hose are production executiveJ ;all -illin ,
production executiveJpressin , production executive kiln, production
executive sortin , production executive la2e makin & production
executive polishin plant
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$he hi hest authority of the company was iven to the -*. 7e is
unable to supervise inspect & makin all day to day business
operations. Ahat he has done, is he dele ated his authority to the
heads of division. *ele ation is the act of assi nin formal authority
and responsibility for completion of speci8c activities to subordinates.
$he head of division assume he is head of RCL factory complex, has
dele ated his authority to his mana ers. =ot total authority but to
most extend. $hen the functional mana ers dele ate it to their /sst.
-ana ers, executives & supervisors so on. $hey dele ate authority to
their senior char e hand, char e hand, production operator to some
extend. /ll the above Eobs are standardi2ed. >urther all the position
of the or ani2ation have been well coordinated to achieve its
obEectivesF to produced ood !uality tile at a lower costF keep it
customers: hand very e?ectively. $his coordination can be seen
vertically as well as hori2ontally too. $he or ani2ation structure of the
or ani2ation falls into 7ybrid system. Ahile each position are reportin
to their immediate supervisor they have report their functional heads.
+specially it can be seen in 7R, >inance department.
$he 7R -ana er and the >actory accountant should report to head of
RCL >actory and should report to head of each functional heads. $he
production department of the company is very similar to a vertical
structure.
Ahen we consider the leadership of the or ani2ation, it seems that it:s
very closer to transactional leadership. It involves an exchan e
relationship between mana ers and followers in the direction of
established oals by clarifyin role and task environments.
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$he mana ement of the or ani2ation has clearly identi8ed unsatis8ed
needs of the employees. 7ere I would like to analy2e, how company
motivate employees throu h satisfyin employees: needs. $he Rocell
always pay their attention to maintain ood salary for the employees.
$he mana ement wants to uplift their standard of livin . #o those
employees ive their maximum contribution to the mana ement. "ery
recently the company si ned a collective a reement for the three
years with its employee trade union. /t the very be innin of the
discussion between mana ement & mother trade union, the top
mana ement interfere the discussion and ave ever hi hest increment
for the employee when we compare with all other company in #ri
Lankan manufacturin industry. $he intention of the mana ement was
the employee should have a reasonable salary to ful8ll their basic
needs. In addition to that, the company has introduced them an
incentive scheme. $hey can earn money apart from their salary. It is
paid for the yield earned by collectively by them. /s the safety needs,
the company, has iven employees an insurance scheme while
employees are comin to the workin place & on home after 8nished
their work. +mployees have been iven hi h Eob security. Recently wecould see a ood example. In last few months, company closed its sub
units. +ven thou h it was closed, the employees: services were not
terminatedF they were o?ered another Eob in another place. >urther
when we o throu h the employee turnover of the company it ac!uires
2ero (') in last few months. It clearly says that employees do not leave
the company and they satisfy with the bene8ts of the company.
/nnually the shop Moor & sta? employees were iven annual trip. It
was iven in this year too even the company had a 8nancial crisis.
+ach and every year the sales team was iven separate rand party in
appreciation of their service to enhance the sales. /ll the sta?
employees were iven rand dinner party in a 8ve star hotel. $hose
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are called rewards that are iven to satisfy the social needs of the
employees
/ll employees of the or ani2ation have opportunity to come up to the
top level of their career. =o restriction. It they work up to the
mana ement expectation, they are promoted to the upper level havin
considered the available vacancies. $hen assi n responsibilities &
dele ation of authority. >urther each and every employee has been
provided company uniforms too.
Ahat ever the thin s it should have limitation and close supervision
and control. >or example, assume that we are allowin the employees
to do their Eobs without any supervision. $he people never do their Eob
as expected. $herefore supervision is re!uired. #upervision is also
considered as controllin techni!ues in mana ement. Ahat is
controllin N Controllin is the process of monitorin activities to ensure
they are bein accomplished as planned and of correctin any
si ni8cant deviation. It can not be separated form plannin and both
are interconnected. ;oth of them start with be innin of any process. $he top mana ement holds a meetin called operation committee
meetin at the very be innin of each and every month. /t that
meetin it is re!uired to review what we did in the last month. $he
mana ers have to present their performance in the presence of top
mana ement (-* & *irectors). $hey compare the last month
performance with their set plans. If any deviation, the mana ers have
to ive their corrective action not to repeat it once a ain or to over
come to situation. $he other controllin part is done by the !uality
assurance and !uality control department (G/ & GC *ept). $hey
clearly say how the manufacturin process should be done. Aith the
intention to standardi2e all the thin s done by the company, the G/ &
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GC department writ down the policies and procedures of the followin
areas.
o Procedure for -ana ement Review
o Procedure for Contract Review
o Procedure for contract review for show Room
o Procedure for *esi n Control
o Procedure for *ocument =umberin
o Procedure for *ocument and *ata Controllin
o Procedure for #ubcontractor +valuation
o Procedure for Identi8cation and $raceability
o Procedure for chan e of *ocument
o Procedure for Control and standard
o Procedure for #ub Contractor Re istration
o Procedure for Preparation of purchase order or contracts
o Procedure for Process Control
o Procedure for Production Control
o Procedure for -aintenance of Plant and -achinery
o Procedure for Incomin material Inspection
o Procedure for Inspection and test #tatus
o Procedure for Corrective and preventive action
o Procedure for the control of =onconformin Product
o Procedure for handlin Customer Complaints
o Procedure for #hippin
o
Procedure for Packa ino Procedure for handlin
o Procedure for delivery in +xport
o Procedure for *elivery for locale sales
o Procedure for stora e
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o Procedure for 7andlin Guality records
o Procedure for Internal !uality +nvironment /udit
o Procedure for provision of $rainin , /wareness and Competence
o Procedure for servicin Customer
o Procedure for statistical $echni!ues
Ahen you o throu h the above procedure you can understand clearly
how company controls all the area of the company. If any deviation is
found, company takes immediate actions to make it correct.
>urther the company uses the 8nancial & non 8nancial controllin
techni!ues. $he 8nancial techni!ues that company uses are 8nancial
audit, 8nancial bud et which is prepared annually, break even analysis,
8nancial statements, and 8nancial ratio analysis. #upervision, !uality
control & inventory control, performance evaluation and employin
security personals are the non 8nancial techni!ues that are used by
the company as its controllin system.
$he 7uman Resources Policy of the company is to attract most suitably
!uali8ed people, retain them and maintain most contented work force
in the or ani2ation. /ll the 7R practices such as Recruitments,
#election and Induction, Performance +valuation, $rainin and
*evelopment, #alary /dministration, *isciplinary /dministration,
rievances 7andlin , +mployee motion are done by the company.
#pecially, it essential to say that Rocell maintains a ood industrialrelationship with its +mployees: $rade @nion. It represents ninety
percent of the shop Moor employees. @nder Rocell roup, there are
three branch trade unions re istered separately but work collectively
as one mother $rade @nion. $hat is Inter Company $rade @nion.
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Ceramic industry is ever chan in day by day new desi n & new
technolo y come to the industry. @sin this new technolo y, the
company produces hi h !uality tiles at a lower cost. -onali2a, =aveen
Ceramics & Lanka tiles are the maEor competitor of Rocell. $he
-onali2a, which is imported from China, is ac!uirin the #ri Lankan
hi her income level of the country. =aveen Ceramics imports di?erent
types of tiles to #ri Lanka from China at a lower cost. Lanka tiles
produces tile as mass production at a lower cost even thou h it doesn:t
have more desi n.
$o face to these challen es the company should facilitate to its all
members to learn the chan es in the lobal industry and need to
transform what they learnt continuously. $en years a o the la2e was
applied to the tiles by spray machine. ;ut in present it is done by velar
machine. It is a new technolo y and apply la2e evenly on the surface
of the tile. /s another example, in the past, the company used the
multiJrole technolo y to print di?erent types of tiles desi n. $ime to
time it has been chan ed, and multiJrole was converted to rotoJcolour.=ow it is bein converted nanoJtechnolo y. It is the newest technolo y
used by hi h state of the art factory to produce tiles. =ow we will see
what Rocell did. $hey send hi h caliber technical & en ineerin people
and employee who had most experience in the 8eld to Italy & China
who produced world best tile, to learn these new technolo ies.
$hereafter the mana ement summon the production operators and
other employees and educate them and top mana ement top
mana ement too. =ow it can be identi8ed as or ani2ational learnin .
$hen #enor technician who participated trainin & education pro ram
and the technical experts who attended to overseas trainin , all
to ether transform this knowled e to each and every employees. Like
wise this is common to ac!uirin new mana ement techni!ues. >or
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instance it is #ixJsi ma concept in the production. $herefore Rocell can
be seen as a learnin or ani2ation. $he stren th of the human
resources of the Rocell is the weapon to complete with its competitors.
In addition to that, recently, Rocell open a concept centre in =awala to
its sanitary ware product. It educates people how to use sanitary ware,
what are the import factors. In the other hand the company educated
its material supplier, how to identify ood !uality material, how it
should be excavated properly etc.
If we analy2e the knowled e, it can be identi8ed clearly as explicit &
implicit knowled e.
$he explicit knowled e have been articulated & documented. $hese
are production manual, technical speci8cation, 7R manuals,
accountin polices & procedures etc. In the factory context the implicit
knowled e is the critical factor. I would like to point out a marvelous
thin here. Ahen we developed a new tile desi n, a new technician
came from Italy. $hat technician was sent by one chemical supplies to
educate us how their chemicals are used. $hen the company alsolaunched its new production desi n in the 8rst time. It the second run
the Rocell technicians could use water instead of that chemical by
chan in the body content. Conse!uently company could reduce the
cost of the tile drastically. $hat is how company used tacit knowled e.
#ome machine operators are also same. #ome time the press machine
made by #/C-I can not be repaired by the technician sent by the
producer. ;ut the one technician of our company was able to make it
correct. Likewise several examples can be pointed out. $his knowled e
become as the power. Power is not somethin that is ac!uired, sei2ed
or shared, somethin one holds on to or allows to slip away. $hen
power creates knowled e.
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>inally I would like to explain somethin more about how mana ement
practices systemic thinkin . >ive years a o the mana ement was
chan ed to new era as I early mention because the top mana ement
do not believe anythin without scienti8c truth. If the middle
mana ement su est to top mana ement about somethin they do
not accept it. $hey need whole information with the reality and the
truth. $herefore I feel that it is enli htenment of western thinkin .
It is explained early the company faced to a 8nancial crisis few months
a o. /s a result of that the middle mana ement ave proposal to
maximi2e contribution of their department. $hey presented their
proposal in the presence of all other senior mana ers. $hose pals had
clearly analy2ed the situation or the problem in their point of view. ;ut
the top mana ement did not accept those proposals to implement at
that sta e. $hey took this problem as a whole and found solution.
Ahat they did was, they decided to close production line for two
months until the stocked built up was moved. $he company had faced
to cash Mow problem and millions of rupees had been utili2ed on
unsold inventory. Ahen I analy2e the above matter it seems that whatmiddle mana ement did was reductionism. $hey analy2ed their small
part ave proposals but $op -ana ement took it as a whole. Its looks
like 7olism.
/t last but not least, when the company operates its business it does
not says the technical word to the work done. Ahen analy2ed the
situation it clearly shows the theoretical back round.
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Reference
)nn+al Re%ort Ro#al ceramic Lan a $LC 2778
Certo ',C, ( Certo ',T, >2776?, @Modern Mana-ementA 17 th edition $rentice.!all
*ndia,
/+alit# Man+al Ro#al Ceramic Lan a $LC 2778