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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

1. Introduction and Methodology


1.1 Introduction
Rahimafrooz is considered to be one of the most reputed and esteemed business firms in
Bangladesh. Rahimafrooz has survived through vigorous competition over the last 55 years
and has been able to transform itself from a small trading company into a leading diversified
business house. This is indeed a landmark in Rahimafroozs view, which Rahimafrooz has
accomplished through apt fusion of trust, support and dedication. This is not only true for its
stakeholders but most importantly, for their customers as well.In our report we are going to
focus on the Rahimafrooz batteries and discuss about its oepration mangement process
specilly Process selection and facility layout.
1.2 Objective of the report
The objective of this report is to understandingoperation management system
ofselectedcompanyand apply the theoretical knowledge gained from the coursework.

To understand the operation management of Rahimafrooz Batteries Ltd

To study the operational efficiency of Rahimafrooz Batteries Ltd.

To know about the facilitylayout and the process of the Rahimafrooz Batteries Ltd

To suggest the ways and means for improvement in policy and techniques.

1.3 Methodology
In this study, exploratory research was undertaken to gain insights and understanding of
their operation management system and for preparing the assignment. There are found
both qualitative and quantitative data. To prepare this term paper, we have collected
information from different sources: from personal interviewand secondary source like
internet. Hence a more comprehensive conclusive research was prepared to fulfill the main
purpose of the study.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

2. Company Overview-Rahimafrooz Battery Limited


Rahimafrooz Batteries Ltd. (RBL) is the largest lead-acid battery manufacturer in Bangladesh.
The company is one of the leading regional players, with market leadership at home and
export endeavours to more than 44 countries around the world. It manufactures about 200
different varieties of batteries for automotive, motorcycle, IPS and other applications in its
factory located at West Panisail, Zirani Bazaar, Gazipur. The Company maintains high
standards of operations, which are certified in both ISO 9001 as well as ISO 14001
standards. Furthermore, in order to ensure occupational health and safety of its employees,
the company has also implemented the occupational health and safety management
system, OSHAS 18001 standard.
The expertise and reputation of Rahimafrooz as a manufacturer of quality batteries locally
and internationally has inspired the Group to invest in setting up a new battery factory at
Ishwardi EPZ to cater to the growing potential in the international battery market. As part of
the same strategy, the Group recently decided to spin-off the Industrial Battery
manufacturing facilities of RBL as a separate business unit, moving to a new factory in Savar.
As a result of these initiatives, RBL will now be able to devote more resources towards
meeting the increasing demand of the local market.

Lucas and Spark are the leading names in the local automotive battery market while Volta,
Optus and Delta are gaining equity as international brands.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

3. Process Selection of Rahimafrooz Battery Limited


Rahimafrooz Battery Limited determines the process that it follows in manufacturing the
batteries as well as in planning the capacitydepending on its capital intensity and process
flexibility. Based on the market demand, competitive pressure and the technology in hand,
RBL uses a combination of both Batch and Repetitive Process in manufacturing their
batteries. This is because they require both, variety in battery production (different
batteries components for different battery configurations i.e. Batch Process) as well as high
volume of output through assembly manufacturing (i.e. Repetitive process).

Justifications behind Batch Process Selection:


The batch process selection, according to RBL is suitable for their production of battery
components. Using batch processing they are able to convert the raw materials into
components for different battery specifications. This is because of the difference in battery
specifications that has to be taken into consideration during the manufacturing process.
When asked about the alternative to batch processing, which is outsourcing of battery
components, RBL stated that initially they were manufacturers and suppliers of car batteries
as well as battery components, which they provided to other local battery manufacturersas such when they shifted to new product lines they decided to put the existing facilities
into use (Advantages: No extra fixed cost incurred and Unit cost varies based on the scale of
production). Besides, quality assurance is also another concern that has strengthened the
decision of in house manufacturing of battery components and which requires batch
processing. However, some of the components such as insulation caps and other low cost
parts are outsourced from local suppliers.

Justifications behind Repetitive Process Selection:


The reasons for RBL including repetitive process alongside with the batch process are mostly
because of high volume production as well as reduction in per unit cost on batteries.
Moreover, the production of batteries using different component parts is best dealt with in
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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

assembly manufacturing (i.e. repetitive process). Another drawback in using other processes
is the sensitive nature of the chemicals used; only repetitive process allows for the batteries
to be immediately sealed during assembling.

3.1 Raw Materials


The raw materials required for battery production according to RBL are as follows:
I)

Lead Blocks & Lead plates (160 gm/sq foot)

II)

Sulphuric Acid (H2SO4)

III)

Calcium Blocks

IV)

Lead caps

V)

Plastic caps

VI)

Water, Paint, Plastic Containers

3.2 Battery Lines There are two main brands of battery that RBL manufactures. They are
Lucas and Volta. Its main product range includes:
i) Automotive battery
ii) Motorcycle battery
iii) Appliance battery
iv) Deep cycle Flat plate battery
v) Industrial tubular battery
vi) VRLA battery
vii) UPS
viii) Solar system

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

Here we have focused on automotive batteries only. A brief description of each of the two
kinds of batteries that we have chosen is given below:
(i) Lucas: Lucas Battery basically is a LEAD ACID BATTERY, which requires maintenance after
being purchased. It is provided with a warranty. Regular checkup is required after 6
months. Maintenance cost is free as Rahimafrooz has got outlets in every corner of the
Country.
(ii) Volta: The most modern and the new technology introduced to the market, especially
for Vehicles like (Cars and Commercial Vehicles). This technology has created vast the
market in countries like Europe because this battery placed the marketing strategy
which says CONNECT IT - FORGET IT . The battery chemicals are used are calcium
based compounds.
3.3 Capacity Availability
Rahimafrooz has state of the art manufacturing plant. It is equipped with all latest
technologies with complete air treatment and lead-recycling management. RBL produces
different types of batteries to meet the local and international market.
Its capacity in Automotive Battery is 660,000 (N50) units per annum and 15 million AH of
Industrial Battery per annum. All the products are manufactured under strict quality control
and ensured by international certifications.
The initial plant capacity for our chosen battery specifications (i.e. LRT13S, LX17L and L180)
was 30,000 batteries per annum based on the demand on 2000 with provision for
expansion. Later it experienced further successive expansion as the demand increased and
is currently at ceiling of 120,000 per annum. Currently RBL is planning to shift to a new plant
to cater new demand.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

3.4 Quality Management


The Company maintains high standards of operations, which are certified in both ISO 9001
as well as ISO 14001 standards. Furthermore, in order to ensure occupational health and
safety of its employees, the company has also implemented the occupational health and
safety management system, OSHAS 18001 standard.

3.5 Factors Determining Process Selection and Capacity


Some of the inputs or factors that determine the process selection and capacity planning
are forecasting, product design and technological change.
Forecasting Demand: The first consideration that is taken in process selection and capacity
planning is forecasting the demand of the market for batteries. Through current sales and
previous trends in sales of batteries, Rahimafrooz determines the demand for the batteries.
Using this forecast Rahimafrooz further decides on the timings of the batches. High demand
batteries are put into production before the low demand ones.
Product Design: The next factor that comes into play is the product design. As discussed
earlier, because of the variability in battery requirements RBL uses both batch and repetitive
process and as well as combination of these two processes during the main production.
Technological Change: Another factor that is taken into consideration by RBL is the
technological change. RBL constantly maintains a well-funded R & D department, which
comes up with different innovations in the technology of batteries. According to RBL, they
are always ready for any technological innovations that may grab their market segment and
they believe that they will be the first one to respond to new demands. This clearly indicates
their excess capacity provision as well as flexibility in shifting their manufacturing process.
If there is change in any of these abovementioned factors than the RBLs nature in process
selection as well as capacity planning will be reconsidered accordingly.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

4. Facility Layoutof Rahimafroze battery limited


4.1 Preparation of Battery Components:
Producing the battery components and chemicals require process layout as they have to be
produced in batch depending on the given demands. First of all the raw materials are
acquired in the inventory based on the demand. The decision of which components to
produce first is also determined based on the demand. Once the demand of a specific
configuration of the battery is determined, the components for that specific model with the
highest demand are batched as high priority and are scheduled to start first. The next
demand level components are batched as medium priority and are scheduled to start as
soon as productions of the high priority components end. The low priority components are
those that make up the models of battery that currently has the lowest demand. For
example, if the demand for the L180 is currently highest than its components are batched as
high priority and is therefore run first. The components production process is given below:
1) Oxide and Grid Processing
a. Oxide Production: Lead oxide, which is used to create the paste used on the battery
plates, is either produced by the Ball Mill Process or the Barton-Like Process. It may
also be purchased from an oxide producer.
b. Oxide Receiving: Oxide is delivered to plants in "pod"cars, which loads the material
into storage by pneumatic conveying (blowing) it into storage tanks. All lead oxide
storage systems have the potential for leaking, particularly around seals and
sampling points
c. Paste Mixing: During the paste mixing process, leadoxide, water, acid, and other
chemicals are blended in a mixer to form a thick paste.
d. Grid Production and Parts Casting: Grid productionand parts casting involves book
casting, continuous casting, and strip casting. In all of these processes, lead pigs are
melted down and the molten lead is poured into molds or continuously cast into
grids, strips, or parts.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

2) Plate Processing:
a. Grid Pasting: During the pasting process, lead oxidepaste is applied to the grid panels
in a pasting machine to fill the spaces of the grid.
b. Enveloping and Wrapping: Enveloping involvesplacing a plate (usually positive),
either automatically or manually, within porous membranes.
c. Handling and Transport: Handling and transportingof materials is an essential part of
the battery manufacturing process. Materials are primarily transported through the
use of mobile equipment (forklifts).

The above mentioned processes are summarized in the diagram below:


Set Priority

Demand
50
40
30
LRT13S
20
LX17L
10
L180
1st 2nd 3rd 4th
Qtr

Qtr

Qtr

Raw
Materials

Set Batches according


to demand

Qtr

Oxide
Processing

Grid
Processing

Oxide
Storage

Grid
Storage

Plate
Processing

Plate
Storage

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

4.2 Assembly of Batteries(Volta and Lucas):


For battery assembling RBL uses product layout. They have independent assembling
sections for both Volta and Lucas. Once the components required for the high demand
battery model are ready, they are immediately put into the assembly line and units for that
specific model is produced until the target volume is met. However, only one configuration
for each brand of battery can be assemble at a time. For example, LRT13S and L180 cannot
be assembled simultaneously, since they are to be assembled in the same assembly line (i.e.
Lucas Assembly Line).
The steps in battery assembling department is more or less same for both the Lucas and
Volta with a minor tweaking that occurs in Voltas assembly line and on which we were not
given any information about. Battery assembly combines the plates, grids, and oxides into a
functional battery. Battery charging is also an important part of assembly. The functions of
each of the workstations in battery assembling are discussed below:
1. Stacking: the plates are stacked either by hand or by machine so that positive and
negative plates alternate with an insulating separator in between.
2. Group Burning: After the plates have been stacked, they are joined with small
connecting parts and burned together to form cell elements or groups. This operation is
conducted either manually at a burning station or by using an automatic cast-on-strap
(COS) machine.
3. Inter-cell Welding and Post Burning: After workers place all the groups in the battery
case, the straps are fused together using a torch or high electrical power source. This
process can also be done using Through The Partition (TTP) technique i.e. using a case
that has been punched. The connections are then welded. The units are tested and the
posts are attached.
4. Formation: In the dry charge (plate) formation process, the first step, called tacking
consists of plates being placed in a tank and lead bars being welded, or "tacked" on.
Battery plates are then formed (or charged) in tanks.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

5. Labelling and Packaging: The formed batteries are than send to the labelling and
packaging department where they are transformed into finished goods ready for sale.

The above mentioned processes are summarized in the diagram below:


Plate
Storage

Grid
Storage

Lucas

Volta

Stacking

Stacking

Group Burning

Group Burning

Inter-cell Welding
and Post Burning

Inter-cell Welding
and Post Burning

Formation

Formation

Labeling and
Packaging

Labeling and
Packaging

Raw
Materials

Raw
Materials

Oxide
Storage

Finished Goods
Warehouse

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

4.3

Business Blueprint of RBL


Start

Forecast Market
Demand

Production Plan

Capacity
Availability

No

Problems?

Start Production

Quality Control

Yes

Lost Revenue

No

Defects?

Replacement

Sales
Yes

Yes

Under
Warranty?

No

Defects?
No

Yes

End

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

The above flow diagram is the process of how RBL conducts its operations from the very
start till the customer service. Initially when they start their operation the first thing they
consider vital is the assessment of the demand for different types of batteries. After
forecasting demand they move on to the planning phase. In this phase they try to form a
production plan base on their assessed market demand. After doing so they move on to see
whether their current capacity allows them to execute their production plan. If it is feasible
than they move into production. In case of capacity problems they have to re-plan their
production so as to meet the capacity requirements.
In the production phase quality control is maintained throughout the entire process
to minimize scraps and other avoidable wastages. If during the quality control process any
defective items are found than that item is scrambled and any recoverable portion of that
battery is put back into production. In any case there is a cost added to this and which is
considered as loss of sales.
After the quality control phase the finished goods are sold, there maybe further
defective items. If so than RBL has replace or repair the goods if they fall under warranty
claims. This also results in loss of sales and most importantly as RBL states Loss of
goodwill. However, if there are no defects and the batteries fail only after their warranty
period than RBL has successfully made sales and therefore profit. The whole process restarts
with the assessment of next possible demand scenario.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

5. Recommendations
After the analysis we suggest that Rahimafrooz Batteries Limited (RBL) to take the followings
into consideration to improve their existing process:

RBL should shift from batch processing to continuous processing in preparation of


lead oxide as it does not require any sort of customization at all.

The workstations in the assembly line are linearly arranged. To reduce production of
defective items RBL may consider implementing U-shaped assembly setting to
ensure quality in production.

RBL could increase their plant capacity more frequently as not doing so maybe
causing potential loss in sales.

RBL may want to consider further processing of the by-products that are generated
from the manufacturing process to increase their revenue instead of bearing the cost
of discharging them.

6.0 Conclusion
RBL is currently doing extremely well in their market segment and they are also the largest
lead acid battery manufacturer in Bangladesh which is their competitive advantage over all
other competitors. Moreover, RBL is not sitting around being the largest manufacturer;
instead it is expanding by attracting customers at a global perspective. In addition, RBL is
constantly generating new innovative ideas through their Research and Development (R&D)
department which has strongly ensured their future position as the dominant battery leader
in Bangladesh market. Along with a few improvements in their manufacturing process and
given the current trend of their growth it will not be long before they actually achieve their
vision of being among the top two battery suppliers within the SAARC countries.

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AN ANALYSIS OF PROCESS SELECTION AND FACILITY LAYOUT ON RAHIMAFROOZ BATTERY LTD.

Bibliography
1. Lead-acid battery. (2007, August 3). In Wikipedia, The Free Encyclopedia. Retrieved
11:56 am, november30, 2012, from http://en.wikipedia.org/w/index.php?title=Leadacid_battery&oldid=149029222
2. Rahimafrooz Batteries Limited. (2005, June 5). Rahimafrooz Website. Retrieved 12:13
pm,

november

30,

2012,

from

http://www.rahimafrooz.com/rahimafrooz_battery_products/world_wide_best_batt
ery_products.asp
3. Chase R. B., Aquilano N. J., & Jacobs F. R. (2000) Production and Operations
Management. 8th Edition\

4. Interview conducted via phone: M Faruque-ul Islam, Project Manager, Motorcycle


Batteries at Rahimafrooz Batteries Ltd.

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