1. PRESENTATION ON Production Planning and Inventory Control

2. HISTORY
Duncan Brothers Ltd. is involved with the production and marketing of various products which include: Packet Tea – This was the first product of Duncan Brothers that was introduced in Bangladesh during Mineral Water: This was introduced in Bangladesh in Rubber Sheets: Although DBL started growing rubber from 1984, it started marketing rubber in local market from In our survey we have included only the mineral water production plant of the company.

3. COMPANY OVERVIEW
Duncan Brothers Ltd. is involved with the production and marketing of various products which include: Packet Tea – This was the first product of Duncan Brothers that was introduced in Bangladesh during Mineral Water: This was introduced in Bangladesh in Rubber Sheets: Although DBL started growing rubber from 1984, it started marketing rubber in local market from In our survey we have included only the mineral water production plant of the company.

4. OVERVIEW OF THE INDUSTRY IN BANGLADESH
Major producers of bottled water are Mum, Pran, Fresh, Aqua, Everest etc. most of these producers are not solely bottled water producers, rather bottled water production is a part of their entire operations. These companies have a large equity that puts them on the extra edge where certain short term loss can be accepted in order to gain a higher long term benefit. Currently MUM and PRAN are considered to be the market leaders in this business, both having a market share of more than 20%. The following chart shows the market share distribution among the major producers of the industry.

5. THE PROCESS LAYOUT The process layout is on a 20,000 square feet floor
THE PROCESS LAYOUT The process layout is on a 20,000 square feet floor. The figure depicts a layout plan of the plant. Figure: The Process Layout of Duncan Natural Mineral Water Production Plant

6. THE PROCESS LAYOUT
Point A in the filling plant is the machine that cleans the bottles and also fills them with filtered water. The filters are fitted into the pipeline from which the water comes directly from the deep tube wells created by the company. Machine B and C are respectively the capping and sealing machine set up in a single production line and connected with a conveyor belt. Point D is the inspection zone where the bottles are inspected manually under bright light for particles inside. Then they are sent to the inventory for finished goods after packing them in cartons.

7. THE PROCESS LAYOUT
The bottle production plant sits on a separate production line and is not connected to the filling and capping plant. Here the bottles and 20 liter Jars are manufactured. Machine F produces the bottles. Bottles are produced periodically with the same machine. G and H are respectively cap makers for the small bottles and the jars. The arrows in the diagram show the flow of the produced bottles through out the layout.

8. THE PRODUCTION PROCESS:
Production of bottled water is a highly complicated process and requires integrated technical know-how.
Bottled water is protected by a multi-barrier approach which may include steps such as source protection and monitoring, reverse osmosis, micron filtration, distillation, ozonization, the application of ultraviolet light or other appropriate processing measures. Bottled water products labeled as spring water, well water, artesian and mineral water must come from protected sources which are monitored frequently.

9. Source Protection:
This involves maintaining the water source in such a way that it is not exposed to, or influenced by, contamination.

10. Source Monitoring:
This involves a series of tests and procedures designed to determine whether a source is suitable for use.

11. EQUIPMENT AND MACHINERY
The necessary equipments and machinery for out plants are as follows: Deep Tube Well ( ft) with submergible pump Filling and Bottling Plant Water Processing Equipment: Primary Filters Secondary Micro Filters

12. EQUIPMENT AND MACHINERY
Ozone Plant
Carbon Filter
Cation Filter
> Iron Removal Plant

13. Blueprint of Mineral Water Production

15. PROCUREMENT OF RAW MATERIALS:
The production of mineral water requires plastic chips as raw materials for producing PET bottles. These raw materials are acquired from dealers in Singapore and Bangkok. A comparative analysis conducted by the company revealed that these materials can be shipped at the cheapest rate from these two places, compared to the other sources in the world. Raw materials for the labels are obtained from local sources.

16. INVENTORY PLANNING AND MANAGEMENT
The operation needs to maintain two different inventories. One for raw materials and the other for finished goods. There are separate storage spaces for each inventory. These storage spaces have been arranged in the already built structure inside the plant.
The raw material inventory is maintained on a quarterly basis. At the beginning of each quarter materials are shipped from the dealers. This can be changed into a two monthly basis if production requires such initiative. It is the dealer’s responsibility to carry freight charges for the shipment. The company carries liabilities from the port of destination.

17. INVENTORY PLANNING AND MANAGEMENT
The finished goods inventory is managed in a monthly basis. There is a policy of having no product in the inventory that is more than one month old. This means that the company will ensure sales for produced goods in the same month. One of the reasons of having a policy like this is that bottled water cannot be or rather should not be stored more than six months before consumption.

18. MANAGEMENT STRUCTURE
The company is formed under the Company’s Act It is solely owned by the investor. In the long term, it might invite outside investment and thus form a corporation of limited liability with a memorandum of association.
The management structure has been kept very simple during the initial two years of production. The initial stage comprised of only one level of management who directly supervise the line operators. Initially only two management personnel were appointed as managers. One of them was in charge of production operations, quality control. The other personnel was responsible for finance and marketing. In the later stage after expansion, a more vast management team will be built with three separate departments each headed by a general manager who will report to the managing director. The new management will have three level of hierarchy with the managing director at the top and assistant managers of different departments at the bottom. A more detailed explanation of each of the designations is as follows.

19. The Managers Managing Director General Manager
Manager (Quality Control)
Manager (Operations)
Manager (Finance and Accounts)
Manager (Marketing and Sales)

20. Manager (Quality Control)
The manager will be responsible for maintenance and control of the quality of the product. He will also be responsible for product development and improvements. He will be assisted by two assistant managers, on of whom will be in charge of the micro-biology laboratory of the plant.

21. Manager (Operations)
The manager will be in charge of scheduling and completing production of the factory. He will be assisted by two assistant managers. One of these assistant managers will assist him with production and the other will provide him logistic support and inventory management. There will be 10 line supervisors to supervise the floor workers, these supervisors will report directly to the assistant manager of operations who eventually will report to the manager of operations

22. Recommendations Uses of more automated machine
Improve the packaging process
Increase variety
Duncan Mineral Water should have an organized distribution channel

23. Conclusion
This report has attempted to explain necessary operating procedures for a bottled water producing plant. Duncan Products Ltd. is one of the leading Tea and Rubber manufacturers in this country. The company has been in the bottled water industry in the last 10 years or so. The Dhaka plant is an extension of the company’s original production plant in Chittagong. This expansion has been made to cater to the capital city’s demand and to decreasing transportation cost. This plant has also given them more capacity to produce more.