management

1. Presenters:
Priyadarshini Samantaray MBA/2019-21/53
Soumyakanta Lenka MBA/2019-21/33
Swostik Rout MBA/2019-21/44
Swagatika Dash MBA/2019-21/42
Suchitra Majhi MBA/2019-21/38
Adarsh Kumar Gupta MBA/2019-21/01

2. Character Sketch
 Mebrisk India-An FMCG Company
 Adip Arya- Assistant Manager (commercial)
 Kevin Mathais- New Director of operations of
Mebrisk India
 Hemant Trivedi – Adip’s boss and General
Manager(commercial)
 Parthiv Vyas – Old director of operations and
finance of Mebrisk India before Kevin

3. Case Analysis
 Adip and Kevin debated and argued for 3 days
over why “Plan Revamp” was done and was it
worth?
 Adip meets Hemant for proper guidance
 Hemant starts explaining the need for the
development and production of the plant
 Adip also remembers last 3 years and his effort in
implementing “Plan Revamp” intialised by old
director of Mebrisk – Parthiv Vyas
 Hemant explains to Adip the need for change

4. Company conditions Before
Parthiv Vyas (Before 1997):
 Tug-of-war between sales and production
 The Performance parameters of the company include – Man hrs per
tonne, Machine hrs per tonne, idle capacity reduction
 Factories produced what they desired irrespective of what market
needed, giving more focus to performance indicators
 Difference between sales forecasts and actual sales used to be 60%
 Unsold stock pile up in company’s inventories.
 Closing stock large packs while demand is not fullfilled for smaller
sizes of products.
 Commercial department playing as a mute moron in the company.
 Working capital was 33% of turnover
 There was no flow of information between teams and lack of a
system for faster data collection.

5. Company conditions (1997-
1999)changes during (Parthiv Vyas)
 Zero/negative working capital
 JIT inventory at all factory locations and vendor supplied
management
 Putting in place an information system to collect and report daily
stocks, supplier positions in real-time.
 Wiring the entire company (Costly V-Sat connections).
 Daily production planning
 Establishment of Zonal stock points (ZSPs) and managing
created for the necessary requirement in sales
 Disadvantages:
 It increased management cost
 The IT Implementation and wiring was very costly during the
time when it was undertaken.

6. Company conditions from 2000 and onwards
(According to Kevin Mathis point of view)
 The Plan Revamp was indeed very costly and
unnecessary.
 With working capital reduction, space should also
be reduced.
 No need of stockpiling items at ZSPs. Move it to
stockists or factories
 Move production planning back to the factory.
 Sales should not tell manufacturing, what to
produce and how much to produce.

7. Facts and Interpretations
 The company had spent 17 crores on the plan revamp
 Parthiv Vyas came from a company which had
commercially driven environment
 Tug of war between sales and production department
every year
 The production and sales plan not in sync
 Interpretation: Commercial department needed to be
active
 Performance parameters followed in factories : Man
hours per tonne, Machine hrs per tonne and idle

8. Facts and interpretations
 Capacity reduction – Interpretation- The focus was on
man hrs per tonne in the factory and thus the factory
produced what they wanted irrespective of the market
need. (performance indicators were given more
preference over stocks/inventory Reduction)
 Things implemented by Parthiv vyas in plan Revamp
were : Zero or negative working capital, - JIT
inventory, management, connect everyone (factories,
depots,regional offices, head office) for the faster data
flow. through Vsat connections, Daily production
planning.

9. Q1. Who will be managing the zonal officers
itself or some implementary party.
 Assumption is that Zonal stock points were
managed by company.
 When Kevin suggested to move all stocks directly
to stockiest (who is a third party person),
 It was assumed that they will simply accept it to
keep a big chunk of stocks.

10. Q2. How to achieve the co-ordination between
suppliers, production unit and sales in a dynamic
environment
 Have the stocks stored at distributors.
 Production unit will be aware of the inventory
position at the stockists.
 Sales will forecast the requirment in details like
packaging, product sizing, product variances
demand and provide it to the production team
 On the basis of above production team will
prepare for the production plan.
 This can be achieved through end to end
communication using IT.

11. CONCLUSION
 Business strategy should be market driven
 Change is inevitable in order to adapt to the changing
environment.
 Transition from one state to another should be smooth.