Meagal Steplast Harvard Case Solution & Analysis

Meagal Stelplast: Steering a new path

Introduction:

Anil Kishore founded the MSL in 1995. It is formally known as a manufacturer of replaced horns in India specifically in Delhi. The manufacturing and production plant was also located in Delhi, Mahipalpur. The company has successfully developed its reputation as a manufacturer and producer of good quality horns. The owner of the company owned a piece of land that was unused; thus, it built a manufacturing facility there. With a passage of time, the company has improved its quality by building good relationships with its suppliers.

The company is engaged in the manufacturing of horns used in cars and other vehicles. Further, the company deals in the replacement market of horns. Currently, the company has aimed to become a supplier of horns to the (OEMs) original equipment manufacturers of automobiles so as to maintain the quality by having assurance in a steady flow of orders. On average, the horns that are made on a monthly basis are 15000 in number from which nearly 20% of the production is done for MSL and the remaining 80% for other brands.

The automotive industry in India is not organized in terms of process and manufacturing. In addition to that, there are few industries in the market that are registered by ACMA (Automotive Component Manufacturers Association. The association is responsible for conducting research and training programs to increase and enhance the productivity and efficiency of the company. Furthermore, the association also encouraged companies that are willing to certify their companies through TS 16949 or ISO 9000.

Current situation:

As mentioned above, a family-owned business known as MSL is a manufacturer of horns used in automobiles. The company is seeking for opportunities to perk up the current operations and enlarge the company business as well. In addition to that, the company is facing several issues that include no brand name, unpredictable demand, non-availability of information, high warranty returns, lack of modern methods usage in manufacturing and non-availability of skilled manpower. In addition to that, MSL is also considering expanding in other cities of India as well and for that MSL needs to have the observance to authoritarian certification.

Analysis:

MSL Horns:

The company is engaged in the manufacturing of horns in and is situated in Delhi, India. Monthly production of the company is around 15000 horns from which 80% of the products are sold to other brands, which then sell those horns under their brand names, and the remaining 20% were sold under the brand name of MSL. The horns manufactured by the company are similar to the electric bell in terms of its working. The main components of the company are copper wire and diaphragm that lead to the assembly of all other components to form the final product. The company is neither certified form ISO 9001 nor registered from Bureau of Indian standards IS 1884. The overall manufacturing process is explained in Exhibit 1 below.

Bills of materials:

Bill of materials is a document that includes a record of sub-assemblies, sub-components, raw materials, intermediate assemblies and other parts that are required in the production of a product. Along with that, it also includes the quantities that are required for each of the component used in the manufacturing. In addition to that, it is also used as a medium of communiqué between the manufacturers and the other partners of the company.

Types of items in MSL’s Bill of material:

Piece items:

Component items are those items that are used in the production and are used for every type of horns produced in the company. There are 31 items that are classified as component items and is purchased as an independent item.

Assembly items:

In these assembly items, items need to be procured, and other types of items are produced. The first item is categorized as an independent item while another category is categorized as a dependent item.

Final product:

The final product that is used to sell the product.

Production procedure matrix:

Under the brand name of MSL, the company produces various types of horns shown in exhibit 1A of the case study. These horns are based on their sub-types in the batches and the specification according to the vehicle as per expectations of the orders. There are a high number of processes that are used in the production of horns that account for most of the production in terms of output. For this reason, following a batch processing system is most appropriate for the company along with following a diagonal path in the production. The company has slightly shifted from diagonal path production after the introduction of several new products under the brand name of MSL.

Disconnecting point:

Disconnecting point in MSL is described as part of the production process where one can achieve an equilibrium point between push and pull strategy. As mentioned in the case, the company always prefer making products to sell and not to stock that describes a pull strategy followed by the company; thus, the decoupling point are raised from the supply side. Further, the company is engaged in the build to order production strategy so that warehousing and inventory cost can be reduced. Nevertheless, evaluation needs to be done upturn the lead time in the manufacturing process that is currently five days.................

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