Operations Method of RFL Plastic Limited

Operations Method of RFL Plastic Limited

ABSTRACT

Operations management (OM) is the business function that plans, organizes, coordinates, and

controls the resources needed to produce a company’s goods and services. Operations

management is a management function. It involves managing people, equipment, technology,

information, and many other resources. Operations management is the central core function of

every company. This is true whether the company is large or small, provides a physical good or a

service, and is for profit or not for profit. Every company has an operations management

function. The report is on “Operations Method of RFL Plastic Limited”. So our report was

conducted on the Order and Operations Processing System of RFL Plastic Product in

Bangladesh. RFL Plastic is a well-reputed manufacturer of plastic packages and products of

different sizes, colors and thickness. The objective of this report is to asses the existing Ordering

process, Company’s Bill of Material (BOM), Master Production Schedule (MPS) and Material

requirements planning (MRP) to find out better alternatives for the company, so that it can

satisfy more customers in future. The data collected for this report are both primary (Personal

interview) and secondary (Company Website). Past records of the company as well as new

information also analyzed to make this report. In case of a Plastic Product manufacturer

company there are different stages to complete the whole order processing system. Basically the

whole operation can be briefly described, which have five different steps, such as Designing,

Mixing, Boiling, Printing and Packing.

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1. Introduction

1.1 Origin of the Report:

Our instructor, Prof. Muhammad Mahboob Ali, Ph.D., assigned us a report, which is a partial

requirement of fulfills the course MBA-512 “Operations Management” The report is on

“Operations Method of RFL Plastic Limited”. Thus, our report was conducted on Order

Processing System Method of RFL Plastic Ltd.

1.2 Purpose of the Report:

The purpose of this report is to asses the existing order, the Company's Bill of materials (BOM),

Master Production Schedule (MPS), and to find better alternatives for the company, so that it can

satisfy more customers in the future.

1.3 Scope of the Report:

The report contains a brief discussion of the various activities of the company and its distribution

process, their existing production process. In connection with certain restrictions, here in this

report, only the order processing system and its activities is discussed.

1.4 Methodology:

The Data collected for this report, both primary and secondary. Past records of the company

were analyzed as well as direct interviews were conducted to collect more information.

1.5 Limitations:

Time and Distance constraints were the main encumbrances for this report. It was not possible

for us to cover all production segments of the company as the time was short. There were also

problems of collecting the primary data from the source. For above mentioned reasons we had to

come up with some arbitrary data.

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2. Organization Overview:

2.1 Background of the company:

RFL Plastics, a subsidiary of RFL Industries is the largest manufacturer of indoor and outdoor

plastic products for domestic and export markets. Our 600,000 square feet (55,700 square

meters) modern plastic manufacturing facility is located 30 miles (50 km) East of Dhaka (capital

of Bangladesh) and went into production in 2003. The factory is fully equipped with state of the

art injection molding, vacuum forming and blow molding machines with a conversion capacity

of over 3,300 tons (3,000 MT) of resin per month. RFL currently utilizes 500 production molds

and an in-house mold repair shop.

RFL Plastic Limited has 3,000 member strong customers centric organization dedicated to

supplying standard or customized plastic products globally. RFL Plastic can take pride in their

work and strive to exceed customer expectation with their quality and responsiveness. They

always welcome the opportunity to become customer’s manufacturing partner of choice.

RFL Plastics Limited commenced its operation in 2003. The vision of the company is to make

molded household products and furniture made of plastics of decorative design at an affordable

price. The company's product ranges include household items like table ware, kitchen ware,

cleaning accessories, storage containers, multipurpose ware, baby ware, hangers and furniture

items like Arm Chair, Armless Chair, Table, Stool etc. Due to its perceived superior quality,

innovative design and varying ranges, RFL has already been established as most preferred brand

in plastic category in Bangladesh. With the expansion of its product line and capacity,

the RFL products are now being exported in various countries around the globe.

Through vigorous selection and evaluation process, best quality food grade plastics are used as

raw materials for manufacturing. The factory is located at Ghorashal, Narshingdhi and is

equipped with 70 plus injection molding machine. Around 3000 workers under the supervision

of more than 100 technical experts put their effort to give the shape of the consumer demands.

Each process line of manufacturing goes through stringent quality control process and checked

against slightest of non conformance. The company has its own R&D laboratory which explores

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about product and design innovations that can meet both expressed and unexpressed consumer

demand.

2.2 Products:

The industry is well equipped with China, Taiwanese and Thai Technology to produce high

quality flexible plastic products such as Hanger & Garments Accessories (Moving Shirt Hanger,

wall Hanger), Food Storage Products (Food Storage Box), Household Utilities (Mug, Super

Bucket), Washroom Accessories (Square Soap Case), Beverage Products (Glass Stand, Design

Glass), Utility & Cleaning Products (Laundry Basket), Furniture (Arm Chair, Table, Stool) etc.

Covering the wide range of packaging, pouches, tubes, garment and films of HDPE (High

Density Polyethylene), LDPE (Low Density Polyethylene), PP (Polypropylene), LLDPE (Linear

Low Density Polyethylene) and their mixes based packing materials round the clock and satisfies

almost all sort of the industry. It can produce up to 8 (Eight) colors and deliver its products

within a very short span of time with a total installed production capacity of 3,000 MT per

annum. The capacity utilization of the industry is over 95%.The industry has the started with an

installed capacity to produce 3,300 tons of plastic flexible of different sizes, colors and thickness

and now increasing their capacity to meet the growing demand.

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Picture-2.2.1: Different types of RFL Plastic Products

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2.3 Polly balls Category:

HDPE is defined by a density of greater or equal to 0.941 g/cm3. HDPE has a low degree of

branching and thus stronger intermolecular forces and tensile strength. HDPE is used in products

and packaging such as milk jugs, detergent bottles, margarine tubs, garbage containers and water

pipes. One third of all toys are manufactured from HDPE

LDPE is defined by a density range of 0.910–0.940 g/cm3. LDPE has a high degree of short and

long chain branching. LDPE is used for both rigid containers and plastic film applications such

as plastic bags and film wrap.

LLDPE is defined by a density range of 0.915–0.925 g/cm3. LLDPE is a substantially linear

polymer with significant numbers of short branches. It has Lower thickness compared to LDPE.

Agricultural films, saran wrap, and bubble wrap, to multilayer and composite films.

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Picture -2.3.1: Different types of Polly balls

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HDPE (High Density Polyethylene) balls

LDPE (Low Density Polyethylene) balls

PP (Polypropylene) balls

LLDPE (Linear Low Density Polyethylene) balls


2.4 Style & Design:

RFL Plastic Ltd. is expert in making different dices for different items. The company gets those

designs from its buyers, suppliers according to their specifications and they have strong R&D

laboratory, which explores about product and design innovations to meet peoples demand. They

have 70 plus injection molding machine to produce those product. These includes such as Arm

Chair, Armless Chair, Table, Stool and so on.

2.5 Machines:

RFL Plastic limited use art injection molding, vacuum forming and blow molding machines for

their Production.

2.6 Operations of Order Processing System:

In the case of plastic manufacturer company, there are various stages to complete the entire order

processing system. In general, the entire operation can be summarized that there are five distinct

steps, such as design, mixing, boiling, packing and packaging. The organization hired an expert

to create a dice design on the customer’s choice. Then varying density polyethylene based balls

and colors are mixed together and ready for boiling. After completion of the boil, print jobs are

run as a sample design allows clients. After printing, packaging materials workers are ready for

shipment.

Figure: 2.6.1 Order Processing System of RFL Plastic Limited

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DesigningMixingBoilingPrintingPacking


2.7 Bill of Materials

A Bill of Material (BOM) is a hierarchical structure of components required to make the finished

good. A BOM is basically a Product structure. RFL Plastic Product is usually made of mixed

materials and the sample dices. Mixed material means the quantity of Polyethylene balls, colors,

and other raw materials. The sample dice are designed by the expert people with high technology

machines which needed power supply.

The Bill of Material of RFL Plastic Limited is given bellow:

2.8 Master Production Schedule (MPS) on the basis of production capability of RFL Plastic Limited

RFL Plastic Limited follows the Master Production Scheduling (MPS), which prepares weekly

production plan for individual models/types of items. It is a plan for end items, or finished goods.

An MPS may be prepared for a period of three months to one year, depending upon stability of

demand. RFL Plastic Limited. RFL can produce at best 90,000 different plastic products in a

week. But they produce 10,000 less than they can produce in a week. Here gives some few

categories of plastic product company delivered in every week to their customer.

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RFL Plastic Product

Mixing Material

Polyethylene Balls

Colors Raw

Materials

Sample Dice

Work Force

Machine

Power Supply

Level 0

Level 1

Level 2


1st Month Scheduling

Model /Type Weeks

1 2 3 4

Outdoor Furniture 15,000 15,000

Hangers & Garments Accessories 50,000 50,000

Beverage Products 35,000 35,000

Shelving Product (Different types of rack) 18,000 18,000

Food Preparation Accessories 30,000 30,000

Kids Corner 12,000 12,000

Total Quantity 80,000 80,000 80,000 80,000

2.9 Uses of MRP Method

To fulfill the market demands the company uses MRP. In accordance with MRP, in the first

action of the company is to forecast, production plan and taking orders for the product. Product

forecasts are needed for each company to plan the future budget for the product, then the

production plan and takes orders from customers. All three of these things combined made the

master schedule of the company; the company has to look at their MRP so that they prepare a

master production schedule to meet demand. Before making the companies order the release to

check the status of inventory to know about their current position in the in the inventory.

After make the order the Company has to verify CRP (capacity planning requirements). If the

resource is available, the company makes a purchase order, and work orders. When the material

reaches the company, they store some of the raw materials and other parts directly load and

scheduling production to produce the final product.

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Figure-2.9.1: The MRP Process of RFL Plastic Limited.

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ProductForecasts

ProductionPlan

Customer Orders

Inventory Status Records

Master Schedule

Planned Order release

Released Work Orders

Capacity Requirements Planning

Work OrdersPurchase Orders

Loading & SchedulingStorage

Products

Manufacturing

To Customer

Material Requirements Planning (MRP)


3.0 Conclusion:

Operations management (OM) is the business function that plans, organizes, coordinates, and

controls the resources needed to produce a company’s goods and services. Operations

management control function. It includes managing people, equipment, technologies,

information, and many other resources. Operations management is a central function of the core

of each company. This is true whether the company large or small, provides the physical goods

or services for profit or not for profit. This practical knowledge will help us in applying our

personal and professional life. While this report, we have accumulated enough insight strategy,

which deals mainly with the activities of management, such as people, machines and processes in

order to fulfill the company, both short and long term goals.

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4.0 Reference(s)

1. Stevenson, William J. (2005). Operations Management (8ed), published by Tata McGraw-Hill

Publishing Company Limited.

2. http://www.rflplastics.com/index.htm

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http://www.rflplastics.com/index.htm

Operations Method of RFL Plastic Limited

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