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MSL Case Analysis

MSL is a horn manufacturing company in Delhi, India. It produces 15,000 horns per month, primarily for the replacement market. While it enjoys employee loyalty, MSL lacks quality certifications and has inefficiencies such as manual record keeping, piecemeal compensation practices, and material pilferage. Recommendations include automating processes, improving material management, utilizing vacant land for expansion, and establishing an assembly line to enter the more stable OEM market.

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Mohit Choraria
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98 views

MSL Case Analysis

MSL is a horn manufacturing company in Delhi, India. It produces 15,000 horns per month, primarily for the replacement market. While it enjoys employee loyalty, MSL lacks quality certifications and has inefficiencies such as manual record keeping, piecemeal compensation practices, and material pilferage. Recommendations include automating processes, improving material management, utilizing vacant land for expansion, and establishing an assembly line to enter the more stable OEM market.

Uploaded by

Mohit Choraria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MEAGALSTELPLAST:

STEERING A NEW PATH TOWARDS IMPROVING AND EXPANDING


MANUFACTURING OPERATIONS

Mohit Choraria
EPGP-13C-050
MSL OVERVIEW

• MSL was formed in Delhi by Anil Kishore in 1995.


• On average, MSL produced 15000 horns per month, of which 20% were branded as MSL
• Two models of horns account for 80% of production - Classic Hero Honda 90 dia and Mithu
AC 72 dia
• MSL enjoys trust of its employees and has one of the lowest attrition rates
• MSL does not possess any kind of quality certification.
AUTO INDUSTRY AND COMPETITION
 Majority SME’s are unorganised and not registered.

 Estimates indicates that Indian auto component industry will grow by 16-18% in 2011-12.

 Cheaper Chinese imports expected to negatively impact the replacement market growth

 MSL’s largest competitor, having almost same facilities, manufactures 28000 horns per month.
MSL’S CURRENT OPERATIONS
 Supplies to replacement market where demand in unpredictable, thus follows Made to
Order policy.

 Orders, invoices, inventory and bill of materials maintained manually.

 Disparity in the way new and old workers are compensated – piece rate v/s monthly
wage.

 Inventory maintained for production of 3000 horns. Next batch of raw materials ordered
when stock reduces to 500 horns. Typical lead time of 4 days.

 Critical items – diaphragm, copper wire and point assembly.

 Costly items such as copper wires and tungsten points being pilfered.
CURRENT PROCESS DIAGRAM
PLANT LAYOUT
GENERAL LOOPHOLES OBSERVED

 Unorganised work station –As seen in the video, the materials at the workstations are un-organised and random
spread out. It can result in pilferage.

 Difficult to find skilled labors especially testers as there is no consistency on quality of horns produced due to use
of inferior raw materials.

 Workers’ reluctance to use automation machines.

 Demand Forecasting –Not being done. Currently following a very reactive approach.

 Lot of vacant land which can be used for expansion or better inventory management.

 A lot of manual work goes into nut and bolt tightening.


RECOMMENDATIONS

 Capacity utilization for the batch process stands at 63%. Improvements like automation, following a U shaped layout,
employee skill training etc. need to be adopted.

 Vacant land should be used to set up a new assembly line for OEM which can meet all the necessary quality
requirements of ISO/BIS.

 Assembly line will help meet the increased demand and being in OEM business will stabilize the uncertainty in demand
as well.

 Improving material management by allocating only necessary amount of raw material for a batch. It will help reduce
pilferage and will help quantify any pilferage or wastage.

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