10 Operations Management Decisions 2

1. Operation manager’s Decision
AtAl hafiz Crystoplast (PVT) Ltd
SUBMITTED BY:
SECTION A

2. About AHCP
AL-HAFIZ CRYSTOPLAST (PVT) LTD. is one of the Plastics & PVC in Peshawar, Khyber
Pakhtunkhwa. AHCP was initiated in 2006 and till now has motivated all its employees
with best compensations and training programs in the market. Al Hafiz Crystoplast is well
equipped to produce different types of PET bottles and other products as well.
Products
PET Preform Injection Molding
 Dry and dehumidify PET material.
 Melting PET material into perform mold.
 PET preform cooled down and formed in the preform mold.
PET Blow Molding
 Plastic granular are fed into a Hopper to melt.
 Melting plastic granules and fed into a mold.
 Molding the melted granules by blowing air.
AHCP want to give your customers the continuous feeling that they have decided for the
right packing provider.
10 Operation Manager Decisions
1. Product & Service Design
AHCP has a product mix of two product that is perform and bottle which then saturate into
many product lines ranging from 17gm perform to 52gm perform and 300ml bottle to
2250ml bottle.
Being in a packaging industry, their customer is not an end consumer but business giant
like pepsi and coca cola. Thus, making them sole decision maker of the product design and
quality. All the specifications including product drawings (neck ring size, thickness,
gramage and height) chemical structure (internal viscosity, LDR value and Recipe) and
label design are provided by the customer them selves
Cost often fluctuates due to the changes in raw materials rate. Moreover service charges of
making the bottle vary with season.
Mock audits are performed by the customer representatives from time to time to ensure
the compliance of given rules and regulations.
2. Quality Management

3. In AHCP quality is the highest objective. As AHCP is one of the leading companies in the
sector of Packaging, high quality standards have to be maintained in every aspect of its
operation. AHCP wants to achieve excellence in the following fields:
 Customer service and gaining customers loyalty (by taking care of the quality and
reliability or their products and services)
 Product leadership (improvement)
 Operational modes - effective, efficient and ethical management
Packaging quality control involves three main stages namely:
 Quality control on incoming raw materials
 Quality control on in-process materials and
 Quality control on finished products
Due to increasing consumer protection legislation and higher safety standards, more
testing is needed. Very often investigation testing is needed for:
 A new product – Established packaging for a new product formulation
 A new application – Over-wrap film for shrink packaging
 A new material – New plastic film for existing product
Ahcp has a separate full fledge quality assurance dept. Quality dept plays very active role in
day to day productions. Quality assurance dept insures the quality of not only the product
but of overall system. Different instruments are used to check the specifications of the
product such as weight, height, LDR value (color) and internal viscosity (IV). There are
many other factors which have an effect on a bottle's stability and toughness, for example:
 Properties of the product to be filled
 Filling temperature
 Interior bottle pressure
 Base and shoulder design of the bottle
 Material distribution
 Preform weight
Different tests are performed to check the product performance under extreme conditions
of temperature pressure humidity and dust. In order to be able to find that out, the bottles
have to undergo a very strict test course at our technical centre. The comprehensive lab
tests cover the entire range of stress types the bottle has to be able to withstand during
production, during transport, and during consumption. AHCP only hand over bottles to you
which have met the test with excellence!
3. Process and Capacity Design

4. The technology used injection molding and blowing is the latest of its kind (i-e husky and
krones). The Operations department ensures the maximum quality check and minimum
human resource in the overall process according to policy only certain amount of man
power is allocated to specific machine assisting in its operation and supervision and
packing and handling of the product. Maintenance is done on quarterly biannually and
annually designs by the maintenance staff. Following diagram shows the overall process
flow.
Capacity Planning
Market demand is broken down into two parts and when one plant is unable to fulfill the
needs the capacity of the second one is utilized.
Minimum grams such as 17gram 22.3 gram and 39gram are produced and stocked in the
off season for the reason that if plant is unable to produce them in the peak season AHCP is
still able to meet the demand.
Roasters are planned in such a way that labor is allowed to perform overtime duties (extra
4 hrs) only in peak season.
4. Location Selection
Plant Location
The plant is located in the industrial area Peshawar based on main market location
strategy.
This strategy was adopted in order to avail the maximum benefits on industrial area that is
planed wapda shut down resulting in decreased down time etc.
Warehouse Location

5. AHCP has its own warehouse and no retailers depending on the nature of the business (that
is business to business). Warehouse lies besides the plant from where goods are directly
transported to customers.
5. Layout Design
Apart from the plant AHCP’s commercial office is in Lahore and finance office in Islamabad
according to the departmental needs. Moreover there is another plant in Faisalabad. Both
of the plants have adjacent inventory and finished goods store. There is decentralized
decision making and plant manager are fully authoritative to take the necessary decisions
accordingly.
6. Human Resource and Job Design
AHCP’s personnel are about 500 employees. The staff includes fulltime, part time and
contract employees. As AHCP recognizes their needs and different seasonal demands, it
provides them flexible working conditions including giving a day off when machines are
not running or excluding the over time from daily shift hour when the order are minimum.
One of the AHCP’s strength is the employees. That’s why it aims to create for them the best
working environment and growth opportunities. It conducts several programs to
encourage them to submit their own ideas and contribute to the company’s growth such as
AHCP’s quarterly magazine brings forward the reservations of the employees of every
level. Moreover there are suggestion boxes place at different places in the plant.
Management and co ordination team gives a prompt and response for all queries place in
that box.
Different training sessions are held during the year and employees are encouraged and
trained to be more responsible, proactive and efficient.
7. Supply Chain Management
Supplier
AHCP doesn’t have many options or any options when it comes to supplier selection within
the boundaries of Pakistan. The only supplier, Gatranova is from Karachi and has monopoly
over the raw material called resin. However, its quality is totally compactable with AHCP’s
needs.
Very rarely when Gatranova is unable to fulfill the needs AHCP imports the raw material
from nearest country that is china, which when unavailable is replaced by octal from Oman.
Normally, one day’s production consumes one container of resin that is 46000 kgs so raw
material has to be procured on daily basis.
In winter season when the demand of the product lowers down, with it the price of raw
material also comes down. So, raw material is purchase on low prices and stored to
discourage the import in peak season when its demand rises.
8. Inventory

6. AHCP builds its inventory in view of demand, minimum levels of the inventory has to be
maintained. FIFO technique is used. Raw material is not stored and is consumed on daily
basis where as perform and finished goods are dispatched within one week of production
on FIFO basis.
9. Scheduling
Labor duties are broken down into two shifts. Each shift contains optimal number of labor
that is 30 labors per shift in single plant.
Demand forecasting is done on monthly basis which is broken down into weekly plans
depending on customer and product priority.
Seasonal forecast strategy is adopted.
10. Maintenance
There is a full fledge maintanance and electrical dept which looks after all the maintnance
and electrical needs of the plants. Providing training and development for their employees
is one of the Nokia’s promises. They pay much attention to be in touch with all new
technologies and maintained the high level of well trained staff. Mechanical and electrical
Maintenance is done on quarter annual and biannual basis in order to increase the
maximum efficiency of machines.
Maintenance plan is schedule in such a way that only one machine will go through
maintenance each day. Moreover under certain circumstance if machines faces some
technical issues the production dept issues work orders to maintenance dept to get the
things done.