Royal Ceramics Lanka PLC is the market leader of the surface solution

industry. It exist to provide surface solution with state of the art, to

both the home & commercial builders with products and services that
transcend the hih !uality, ensurin customer satisfaction by matchin
all expectations, rowin the market by way of product innovation,
there by enhancin share holders wealth, and developin its human
resources to excellin latitudes. "ery recently it started its business in
the sanitary ware market as well. Conse!uently Royal Ceramics is the
pioneer of producin sanitary ware in #ri Lankan ceramics industry by
turnin ceramics industry to new era.
$his company was established in %&&' as Royal Ceramics Lanka (Pvt)
Ltd. It was converted to a public !uoted company in *ecember %&&%
with the intention to enhance capital to expand its business. $he
shares were listed on the Colombo #tock +xchane on ,
rd
-ay %&&.. /s
at ,%
st
march 0''& the sated capital of the company was Rs. 1%.
million. $hereafter it is called Royal Ceramics Lanka Ltd and later on it
is called as Royal Ceramics Lanka PLC. (RCL). #ince its inception it run
its business to be a brand leader in the tile industry. In less than a
decade, the company reali2ed to achieve its oals throuh
innovativeness & excellence in desin. #ince then it produced
Ceramics porcelain tiles and la2ed ceramics tiles with porcelain
homoenous tile. $his is the only company which can produce these
two types of tiles in #ri Lanka.
$he principle activity of the roup continues to be the manufacturer
and sales of porcelain & ceramics tiles and the company undertook
maintenance of the show rooms network from 3uly 0''4 on words to
distribute the product of the company and its subsidiary, Royal
Porcelain (Pvt) Ltd under the brand 5Rocell6. Royal Porcelain (Pvt) Ltd
1
also wholly owned subsidiary of the company, was incorporated to
ac!uire tile manufacturin factory at 7oran and has recorded a pro8t
of Rs. 9%% million for the year. Royal Ceramics *istributors (Pvt) Ltd is a
wholly owned subsidiary of Royal Ceramics Lanka PLC has recorded a
loss of Rs. %14,''' durin the year under review. $his subsidiary
company:s operations were transferred to the parent company durin
midyear ended ,%
st
-arch 0''9.
Rocell ;athware Limited, is also a wholly owned subsidiary of the
company, was incorporated to manufacture and sell sanitaryware
products to local and export market, has recorded a loss of Rs. %%
million for the year.
;y the time it expanded its business, it created a brand for its priced as
5Rocell6. $oday this brand name has ood personality and it has
captured 8fty 8ve percent (44<) of the #ri Lankan market and exports
to numerous countries across the lobe. $he market of operation of
the company done throuh the stron distribution network comprises
of .' show rooms and three (',) warehouse that were located in
strateic area in #ri Lanka. Recently the manaement decided to open
its show rooms in =orth and east province. / >easibility study is bein
conducted to do it in /mpara, $rincomalee, ;aticallo, "avniya and
3a?na. -ost probably manaement think the company could explain its
business there with 5@thuru Aasantahaya6 and 5=eenahira
=awodaya6. 7ow they predicted is on their expert knowlede in
analy2in the future economy.
>urther, $he -anaement o?ered to Ceylon theater for the companies
which producin ceramic tiles, to et controllin power of the -ain
competitor, Lanka $iles PLC, Lanka Aall $iles.
;efore we analy2e the manaement system, it is re!uired to mention
about the 8nancial situation of the company. $his is because, these
2
8nancial 8ures are the measurements of e?ectiveness & eBciency of
the manaement practices done by the company.
+ven thouh, the company faced to an economic crisis in the later part
of the 8nancial year 0'%0C0'%,, Rocell reported Rs.%.D, billion net
pro8ts remarkably, while recorded pro8t of Rs. %.0. billion in
0'%%C0'%0.
In any orani2ation, plannin is a critical manaement activity
reardless of the type of orani2ation bein manaed. $his is not
common for pro8t orani2ation but common for every orani2ation like
non pro8t orani2ation, defense forces etc.
$his company has established its vision & mission speci8cally. $hat is
Vision
To continue to be the leader in the surfacing industry locally
& to enter and impact the global market.
$his vision has said its dream of the future of the business deeply
embedded in the mind of founders.
Mission
To ofer state of the art surfacing solutions to both the home
and commercial builders with products and services that
transcend the highest quality, ensuring customer satisfaction
by matching all expectation, growing the market by way of
product innovation, thereby enhancing share holders wealth,
developing human resources to excelling latitudes such that
Royal eramics exudes a stance of excellence!
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-ission has clearly said and identi8ed scopes of the business operation
in product and market terms. Its maEor product is providin surfacin
solution. +ven thouh this mission statement talkin about surfacin
solution, in 0''&, the company started its business to provide total
sanitaryware solution to the #ri Lankan customers as a fully own
subsidiary of Royal Ceramics Lanka PLC and under Rocell brand. $hat
company is called Rocell ;athware (Pvt) Ltd. Ahen we analy2e the
vision & mission statement of the mother companyF set up by its
founder, the time has come to chaned it. $his occurred due to
chanin of the manaement. #even years ao, the present
manaement has taken the mandate power havin ac!uired more than
4%< of total shares issued to appoint directors to take direct decision
as their desire. $he new manaements view is very broader than the
previous. $hey wanted to expand the business within ceramics industry
without limitin it to the tiles.
In other point of view, even thouh this subsidiary is fully own by the
RCL PLC and controlled by the same corporate manaement, it has a
separate company and have a leal personality. $herefore the Rocell
bath ware Ltd (R;L) has separate vision & mission statement.
/ll products made by these three were distributed by its show rooms.
$hese show rooms were located strateically to expand the market
share. / show room manaer is appointed to each show room with at
least three assistants. =umber of assistant may defer on number of
transactions done by each show room. +ver customer can buy any kind
of tiles and bathware at any time from these show rooms.
=ow we have a !uestion what sort of tile we produce and sales and the
total !uantity of each cateory. $herefore the company needs to do a
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market analysis. +ach and every month the top manaement
summoned all key people in the manaement. $hen they are
!uestioned about their ideas information about the market, customers:
expectations, what competitors do , barriers and diBculties and so on.
$his meetin is called *esin Review -eetin. In manaement these
types of meetin fall into the cateory of #;@ pans. *oin all these
thin company prepares the production plan. It is not a simple task.
>irst it is needed to decide the desin of the tiles. $herefore to prepare
the ;ased on the company "ision and -ission statement of the
company, manaement sets its obEectives and strateies. ;efore we o
throuh the plannin process it is re!uired to explain about the
orani2ation structure of the company. $hen very easily you can
understand the plannin process of the company.
5
Organization Structure
6
CEO Rocell
Bath ware LTD
Chairman
Vice Chairman
MD
Board of Director
!ead of
"actor# RBL
!ead of R$L
"actor# Com%le&
!ead of RCL
"actor# Com%le&
!ead of
Technical
!ead of 'ale
( )dmin
!ead
of *T
!ead of
)+dit
)t, "actor# Mana-er.
$rod+ction
Director
M-t ( 'ale
)t, $rod+ction
Mana-er
M-r
$lannin-
M-r /C (
R(D
M-r
!RM
'how
room M-r
)t,
'tore M-r
"actor#
)cco+ntant
'ection
*nchar-e
Millin-
'ection
*nchar-e .
$olihin-
'ection
*nchar-e
. 'ortin-
'ection
*nchar-e
. 0iln
'ection
*nchar-e
. $re
$rod+ction
E&ec+ti1e
$rod+ction
'+%er1ior
/C
'+%er1ior
!R
)t
!R
)t
'tore
0ee%er
'tore
0ee%er
/)
E&e
'tore
E&ec+ti1e
!R
E&e
'how room
)t,
$lannin-
E&e.
$rod,
$lannin-
E&e
Deli1er#
$lannin-
E&e
E&%ort
)cc
Officer
)cc
E&e
I Eoined Royal Ceramics Lanka Limited >actory located at +heliyaoda,
%&&, as a -anaement $rainee. I was assined to Guality Control
*epartment of the factory. ;y %&&1, I have been promoted to /sst.
Guality Control -anaer, /s the /sst. Guality Control -anaer, main
task was to desin development, process Controllin and *ocument
preparation for I#H &''% certi8cation.
$he Ieneral -anaer assined me and another executive oBcers to
prepare a feasibility report on Interbatch Porcelain >actory located at
7orana. Ae have had taken . month to prepare the feasibility report.
$he ;oard of *irectors decided to purchase the former Interbatch
Porcelain >actory which was bankrupt, based on the recommendations,
/fter the purchase of RPL (>ormer Interbatch) I assumed duty as
Guality /ssurance and R & * manaer of the Plant.
-ain $ask was to Implement Guality Control #ystem and develop =ew
$iles to compete with Lanka $iles and Hther Importers. *urin the
period, $rainin Prorammes on $estin and Guality Controllin and
Iuide lines for Production #ta? were conducted.
In 0''., $he -anaement decided to assin me as the Production
-anaer which was vacant due to promotion of Production -anaer as
the >actory -anaer. /s a new comer to production manaement, I
had to study function and technical details of all machinery in the
factory which was very diBcult task. 7owever, I could manae the
Production with the machinery which are havin lot of breakdowns, as
a result, lot of downtime were met. $he top manaement decided to
uprade the technoloy with modern machinery and knowJhow.
)fter %romotin- to )t "actor# mana-er2$rod+ction3 * coordinated all de%artment +ch
a +%%lie3 Mar4etin-3 *T3 $lanni- and !+man reo+rce alo,
5
) %er the deciion ta4en 6# the o%eration committee meetin-3 on 27783 * ha1e 6een
tranferred to Rocell Bathware for i& month to im%lement a 6etter %rod+ction control
#tem in the %lant a the #ield wa 1er# low, D+rin- that %eriod3 M# main ta4 wa to
6+ild a team wor4 within the e&ec+ti1e taff which wa 1er# diffic+lt a the "actor#
Mana-er and $rod+ction Mana-er of Rocell Bathware were 1er# e&%erienced officer
from *ndia,
!owe1er3 d+rin- thi %eriod3 * learnt lot of technical matter while wor4in- with the all
the taff incl+din- floor le1el wor4er,
)fter ret+rnin- 6ac4 to R$L factor#3 Mana-ement decided to ai-n me a the main
coordinator for im%lementation of ER$ #tem for the -ro+% a * wa the onl# %eron
who had e&%erience all three %rod+ction "acilitie, To %re%are central in1entor# #tem
within the -ro+%3 * had to %re%are codin- tr+ct+re for 9eneral 'toc4 a well a "inihed
-ood for all three %rod+ction facilitie o a to minimi:e the in1entor# cot, On 22
nd
)%ril in 27133 Rocell la+nched oracle 6aed ER$ #tem and * had to in1ol1e all codin-3
toc4 6alancin- and cond+ctin- trainin- %ro-ramme for all +er in factorie and
howroom,
)fter the )+-+t in 27133m the mana-ement ha reai-ned me for R$L $rod+ction
$roce a the efficienc# and achie1ement were low d+e to technical reaon,
$lannin-
$re%aration of Monthl# tar-et for the factor# and detailed tar-et for each %rod+ction line,
$re%aration of $rod+ction tar-et for hift.wie to minimi:e r+nnin- of machiner# d+rin-
%ea4 ho+r to red+ce the electricit# con+m%tion for the machiner#,
)nal#e the dail# %rod+ction and /+alit# achie1ement in each de%t which effect to final
%rod+ction achie1ement, )nal#e the reaon if the de%t doe not meet the tar-et and
ta4in- correcti1e action for the technical matter and allocation of re;+ired e&%ertie for
effected area, Releain- of ome machiner# to en-ineerin- de%t to carr# o+t maintenance
wor4, )nal#in- the re<ect rate of tile at the %rod+ction line and -+ide rele1ant officer
to minimi:e wata-e in each ta-e of %rod+ction, Orderin- all %rod+ction con+ma6le
which im%ort from *tal#3 '%ain and China and maintain +fficient toc4, *n thi cae3 the
chec4in- and a%%ro1in- of the technical drawin- of %recie *tem +ch a Die and
=
Mo+ld i com%+lor# to a1oid an# de1iation of the %rod+ct, The toc4 of +ch material
ho+ld 6e +fficient for at leat 3 month, $lannin- %rod+ction %roce o a to maintain
minimal chan-e which chan-in- the %rod+ct to 6e chan-ed, -ain $ask is to
monitorin the Production and Guality /chievement of the >actory.
/part from that, I have responsibility to allocate Eunior executive to
each and every department so as to uplift their knowlede on the
production process and technical matters.
I facilitate my subordinates for their all production related functions
and if necessary, I propose and et approval for some kind of
instruments and machinery which not exceed ,''' usd. ;ut, it is
re!uired to prepare the cost bene8t of the instrument or the machinery
which has to buy. #ometimes, materials have to be taken from any
factory within the roup.
8
Or-ani:in-
Hnce a year, the $op -anaement instruct all relevant manaer to
prepare the budet for forthcomin year. $he Plannin dept prepare
the market demand of tiles and distribute amon the manaers. -y
responsibility is to prepare the production budets for all consumables
considerin the data iven by the Plannin manaer. Ahile preparin
production budet, annual shut down of the machinery are also
considered, as some essential maintenance works should be
completed. /ll manaers in the plant are prepare their budets as per
the uide lines iven by the manaement and plannin dept.
/ll sectional executives are responsible for smooth function of relevant
dept and they are authori2ed to carry out all maintenance and et
assistance of supportive dept, with my knowlede.
Leadin
Conductin daily production meetin with all sectional in chare,
propose most important points to considered. /nd most of 3unior
+xecutives are new comers to the ceramic industry, in line trainin on
trouble shootins and demonstrations to identify causes, are bein
conducted. >or identi8cation of causes and points in production lines,
they should be calm and close inspection for lon time at a point.
Controllin
>urther, I look after all technical matters even if it is a responsibility of
Guality /ssurance dept (Process Controllin) as I had an experience in
Guality /ssurance dept on Process Controllin, *esinin of tiles and
$estin of /ll inspection points.
>urther, /s the Production manaer who experienced in Guality
/ssurance dept, I used to investiate the causes for the various defects
1
which come across while production is oin on even thouh it is a
responsibility of Gauality /ssurance -anaer. >or this, >loor level
workers, 3unior +xecutive and manaers in relevant department are
participated for identi8cation of causes usin statistical techni!ues
such as pareto diaram and cause and e?ect diarams.
11
$he 8nancial year of the company starts form /pril and end with
-arch. +ach & every year, in the month of 3anuary, the top
manaement informs to relevant heads to submit them, their roup
(divisional plan). Ahat they do is, the heads of each division call
hisCher all manaers to submit their individual departmental plans.
$hereafter, the manaers & the head of the division prepare a plan
toether with. $hen those plans are discussed with all divisional heads
& top manaement. /t the 8nal stae, they 8nali2e the plans for the
company. $his plan is called cooperate plan. $his plan consists of
;usiness Plan, Capital +xpenditure Plan and 7uman Resources Plan.
Ae can overlook the above activities in theoretical aspect. $he
ultimate plan the top manaement produced is the corporate plan.
/fter cooperate plan was prepared they communicate it to the heads of
each division. +ach head of division communicates plans what they
received form to manaement to their manaers. >urther I could see
another plan called strateic business units plan. $hey had prepared a
plan how to compete with low !uality, low cost imported tiles available
in the market. /s you all know, there are so many such sort of tiles are
available in the market. $he most of the customers do not consider
the !uality and the desin of the tile. $hey still pay their attention to
cost. Conse!uently it a?ects to drop our sales volume drastically.
$herefore the #;@ unit of the company which comprises of senior
manaers who came from various disciplines is assined to prepare
their strateic plans to face this competition. $hey had decided to
produce a low cost, ood !uality tiles by usin reen basedF waist
powder in the normal production, but can be used to mix with powder
which can be used to produce ood product to certain ratio. Presently
it has been marketed, and now it is on developin stae of its life
cycle.
1
/s the Productuon -anaer, my role is to produce production budet
for the year with the help of Production +xecutives in each dept. >or
this purpose, analysis of Past Production and yield as well as
consumption of all materials are considered.
/fter the 8nal budet which have been approved by the $op
-anaement, Production Plan for each production lines are prepared
toether with Plannin -anaer. >or this purpose, the Plannin
-anaer analyse the past sales of tiles and sales forecast for some
times for forthcomin month. >or this, my responsibility is to assist
Plannin -anaer to prepare the Production Plan, considerin
constraints in the factory.
/s I early mentioned, the functional plans made by the manaers its
superiors, they prepare the operational plans to achieve their
obEectives. 7ence they have clearly mentioned the policy, procedures,
prorams, proEects rules & reulation. >or instance, we take the
operation plans of production. It says what sort of body material they
should use, technical speci8cationF cycle time, temperature number of
labor, #eries of steps of producin a tile, what sort of thin should be
done & not should be done, the expected cost per tile etc.
$he operational plans can be divided into two as sinle use plan &
standin plans. In this economic recession, our company had to stop
its production. #o that the cost of labor was a burden factor. $hen
manaement plan to ive them volunteer retirement scheme. It was
used only one time. #ometime it may be used one another time in the
future. $his type of plans called sinle use plan. #tandby plans are the
plan what is explained early. >or example plans that consist of the
procedure of makin tile.
1
In the plannin process, you may think that the company has not
followed the plannin process. ;ut plannin process has been used
exactly as it is. Ahen individual C departmental plans come form
bottom to top, the top manaement prioriti2es their obEectives. 7avin
selected the best ways to achieve the obEectives and they make the
action plans. Ahat lower level manaer did is puttin plans into
action. If you o throuh the above detail it clearly shows how
plannin process is oin on.
/s I early explained it clearly shows orani2ational chart of the roup.
$herefore here I speci8cally explain about the orani2ation structure &
the orani2ation chart of Royal Ceramics Lanka PLCF the mother
company. $here are seven elements are re!uired to discuss with
orani2ational structure. $he maEor Eob of the company is producin
ood !uality tile of a lower cost & distribute to the customer with
pro8t. Hne employee can not produce a tile completely. $herefore the
maEor Eob are re!uired to divide into small & simple Eob in which each
worker can speciali2ed and havin them perform such simpli8ed Eobs
repetitively and continuously.
*ivision of labor and work speciali2ation
%. Producin a $ile
a. Collect raw materials
i. Aeihin Raw material
ii. -ixin raw material
iii. Loadin Raw -aterial
b. Preparin Powder
i. Aeihin -aterials & Loadin ;all -ills
ii. Hperatin ;all -ills and unloadin slip
iii. Hperatin #pray *rier and loadin to silos
iv. Powder -ixin
1
c. ;uildin a Raw tile
i. Hperatin Press -achine
ii. Hperatin "erticalC7ori2ontal drier
d. /pplyin Ila2e
i. Hperatin Ila2in /pplication -achine
ii. Hperatin printin -achine
iii. Hperatin Loader ;ed -achine
e. >irinCKilnCburnin tiles
i. Inspection of feedin point
ii. Hperate the Panel ;oard of Kiln
iii. Inspection of tile out point
iv. $ile loadin
f. #ortin Iood $iles
i. $ile Loadin to the #ortin Line
ii. Guality checkin
iii. #ortin $iles
iv. Hperatin #tacker -achine
v. Packain
vi. @nloadin to palette
. Ila2e -akin
i. Ila2e Preparation
If we take the task producin tile, it is divided into at least seven tasks.
/ssume that we take powder preparation. $his Eob can not be done by
one employee. It is also divided into further four (.) Eobs as weihin
materials and loadin ball mills, Hperatin ;all mills and unloadin,
operatin the spray drier and loadin powder to silos and Powder
mixin. $his Eob is a collection of few task and duties. $hen employees
are assined to each Eob. Likewise all the above sub tasks that is
1
twenty three are assined twenty three employees to cover the duty.
$his is a continuous production system. $herefore each Eob is assined
four employees to cover up eiht hour three shift per day and to cover
the day o?. Ahen those employees do the same Eob over and over
aain continuously they take work speciali2ation. Ahen we consider
these seven maEor tasks and sub tasks as a whole it is called as the
Production *epartment. ;asically, the base of departmentali2ation is
functional basis. Hn the functional basis the other departments are
Plannin *epartment, Guality /ssurance & Guality Control *epartment,
7uman Resource *epartment and >inance *epartment.
$he third element is chain of command. $he orani2ational chart
clearly shows the se!uential arranement of position on the basis of
level of authority. It is unbroken line of the authority that extends from
top of the orani2ation to the lowest level clarifyin who reports to
whom. Its need to say that, even thouh there is a chain of command,
most probably the lower level oBcer directly report to a top or senior
manaer. #ome time to the manain director. >or example the 7R
manaer has the power C politics to by pass his all immediate superiors
and to report to -*.
In manaement the number of subordinates who report to a manaer
is called span of manaement. In each and every department, there is
a manaer. /ccordin to the number of position, the span of control
may defer one department to the other.
It we take production department, the span of manaement of
production manaer is six. $hose are production executiveJ ;all -illin,
production executiveJpressin, production executive L kiln, production
executive L sortin, production executive L la2e makin & production
executive L polishin plant
1
$he hihest authority of the company was iven to the -*. 7e is
unable to superviseCinspect & makin all day to day business
operations. Ahat he has done, is he deleated his authority to the
heads of division. *eleation is the act of assinin formal authority
and responsibility for completion of speci8c activities to subordinates.
$he head of division assume he is head of RCL factory complex, has
deleated his authority to his manaers. =ot total authority but to
most extend. $hen the functional manaers deleate it to their /sst.
-anaers, executives & supervisors so on. $hey deleate authority to
their senior chare hand, chare hand, production operator to some
extend. /ll the above Eobs are standardi2ed. >urther all the position
of the orani2ation have been well coordinated to achieve its
obEectivesF to produced ood !uality tile at a lower costF keep it
customers: hand very e?ectively. $his coordination can be seen
vertically as well as hori2ontally too. $he orani2ation structure of the
orani2ation falls into 7ybrid system. Ahile each position are reportin
to their immediate supervisor they have report their functional heads.
+specially it can be seen in 7R, >inance department.
$he 7R -anaer and the >actory accountant should report to head of
RCL >actory and should report to head of each functional heads. $he
production department of the company is very similar to a vertical
structure.
Ahen we consider the leadership of the orani2ation, it seems that it:s
very closer to transactional leadership. It involves an exchane
relationship between manaers and followers in the direction of
established oals by clarifyin role and task environments.
1
$he manaement of the orani2ation has clearly identi8ed unsatis8ed
needs of the employees. 7ere I would like to analy2e, how company
motivate employees throuh satisfyin employees: needs. $he Rocell
always pay their attention to maintain ood salary for the employees.
$he manaement wants to uplift their standard of livin. #o those
employees ive their maximum contribution to the manaement. "ery
recently the company sined a collective areement for the three
years with its employee trade union. /t the very beinnin of the
discussion between manaement & mother trade union, the top
manaement interfere the discussion and ave ever hihest increment
for the employee when we compare with all other company in #ri
Lankan manufacturin industry. $he intention of the manaement was
the employee should have a reasonable salary to ful8ll their basic
needs. In addition to that, the company has introduced them an
incentive scheme. $hey can earn money apart from their salary. It is
paid for the yield earned by collectively by them. /s the safety needs,
the company, has iven employees an insurance scheme while
employees are comin to the workin place & on home after 8nished
their work. +mployees have been iven hih Eob security. Recently we
could see a ood example. In last few months, company closed its sub
units. +ven thouh it was closed, the employees: services were not
terminatedF they were o?ered another Eob in another place. >urther
when we o throuh the employee turnover of the company it ac!uires
2ero (') in last few months. It clearly says that employees do not leave
the company and they satisfy with the bene8ts of the company.
/nnually the shop Moor & sta? employees were iven annual trip. It
was iven in this year too even the company had a 8nancial crisis.
+ach and every year the sales team was iven separate rand party in
appreciation of their service to enhance the sales. /ll the sta?
employees were iven rand dinner party in a 8ve star hotel. $hose
1
are called rewards that are iven to satisfy the social needs of the
employees
/ll employees of the orani2ation have opportunity to come up to the
top level of their career. =o restriction. It they work up to the
manaement expectation, they are promoted to the upper level havin
considered the available vacancies. $hen assin responsibilities &
deleation of authority. >urther each and every employee has been
provided company uniforms too.
Ahat ever the thins it should have limitation and close supervision
and control. >or example, assume that we are allowin the employees
to do their Eobs without any supervision. $he people never do their Eob
as expected. $herefore supervision is re!uired. #upervision is also
considered as controllin techni!ues in manaement. Ahat is
controllinN Controllin is the process of monitorin activities to ensure
they are bein accomplished as planned and of correctin any
sini8cant deviation. It can not be separated form plannin and both
are interconnected. ;oth of them start with beinnin of any process.
$he top manaement holds a meetin called operation committee
meetin at the very beinnin of each and every month. /t that
meetin it is re!uired to review what we did in the last month. $he
manaers have to present their performance in the presence of top
manaement (-* & *irectors). $hey compare the last month
performance with their set plans. If any deviation, the manaers have
to ive their corrective action not to repeat it once aain or to over
come to situation. $he other controllin part is done by the !uality
assurance and !uality control department (G/ & GC *ept). $hey
clearly say how the manufacturin process should be done. Aith the
intention to standardi2e all the thins done by the company, the G/ &
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GC department writ down the policies and procedures of the followin
areas.
o Procedure for -anaement Review
o Procedure for Contract Review
o Procedure for contract review for show Room
o Procedure for *esin Control
o Procedure for *ocument =umberin
o Procedure for *ocument and *ata Controllin
o Procedure for #ubcontractor +valuation
o Procedure for Identi8cation and $raceability
o Procedure for chane of *ocument
o Procedure for Control and standard
o Procedure for #ub Contractor Reistration
o Procedure for Preparation of purchase order or contracts
o Procedure for Process Control
o Procedure for Production Control
o Procedure for -aintenance of Plant and -achinery
o Procedure for Incomin material Inspection
o Procedure for Inspection and test #tatus
o Procedure for Corrective and preventive action
o Procedure for the control of =onconformin Product
o Procedure for handlin Customer Complaints
o Procedure for #hippin
o Procedure for Packain
o Procedure for handlin
o Procedure for delivery in +xport
o Procedure for *elivery for locale sales
o Procedure for storae
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o Procedure for 7andlin Guality records
o Procedure for Internal !uality C +nvironment /udit
o Procedure for provision of $rainin, /wareness and Competence
o Procedure for servicin Customer
o Procedure for statistical $echni!ues
Ahen you o throuh the above procedure you can understand clearly
how company controls all the area of the company. If any deviation is
found, company takes immediate actions to make it correct.
>urther the company uses the 8nancial & non 8nancial controllin
techni!ues. $he 8nancial techni!ues that company uses are 8nancial
audit, 8nancial budet which is prepared annually, break even analysis,
8nancial statements, and 8nancial ratio analysis. #upervision, !uality
control & inventory control, performance evaluation and employin
security personals are the non 8nancial techni!ues that are used by
the company as its controllin system.
$he 7uman Resources Policy of the company is to attract most suitably
!uali8ed people, retain them and maintain most contented work force
in the orani2ation. /ll the 7R practices such as Recruitments,
#election and Induction, Performance +valuation, $rainin and
*evelopment, #alary /dministration, *isciplinary /dministration,
Irievances 7andlin, +mployee motion are done by the company.
#pecially, it essential to say that Rocell maintains a ood industrial
relationship with its +mployees: $rade @nion. It represents ninety
percent of the shop Moor employees. @nder Rocell Iroup, there are
three branch trade unions reistered separately but work collectively
as one mother $rade @nion. $hat is Inter Company $rade @nion.
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Ceramic industry is ever chanin day by day new desin & new
technoloy come to the industry. @sin this new technoloy, the
company produces hih !uality tiles at a lower cost. -onali2a, =aveen
Ceramics & Lanka tiles are the maEor competitor of Rocell. $he
-onali2a, which is imported from China, is ac!uirin the #ri Lankan
hiher income level of the country. =aveen Ceramics imports di?erent
types of tiles to #ri Lanka from China at a lower cost. Lanka tiles
produces tile as mass production at a lower cost even thouh it doesn:t
have more desin.
$o face to these challenes the company should facilitate to its all
members to learn the chanes in the lobal industry and need to
transform what they learnt continuously. $en years ao the la2e was
applied to the tiles by spray machine. ;ut in present it is done by velar
machine. It is a new technoloy and apply la2e evenly on the surface
of the tile. /s another example, in the past, the company used the
multiJrole technoloy to print di?erent types of tiles desin. $ime to
time it has been chaned, and multiJrole was converted to rotoJcolour.
=ow it is bein converted nanoJtechnoloy. It is the newest technoloy
used by hih state of the art factory to produce tiles. =ow we will see
what Rocell did. $hey send hih caliber technical & enineerin people
and employee who had most experience in the 8eld to Italy & China
who produced world best tile, to learn these new technoloies.
$hereafter the manaement summon the production operators and
other employees and educate them and top manaement top
manaement too. =ow it can be identi8ed as orani2ational learnin.
$hen #enor technician who participated trainin & education proram
and the technical experts who attended to overseas trainin, all
toether transform this knowlede to each and every employees. Like
wise this is common to ac!uirin new manaement techni!ues. >or
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instance it is #ixJsima concept in the production. $herefore Rocell can
be seen as a learnin orani2ation. $he strenth of the human
resources of the Rocell is the weapon to complete with its competitors.
In addition to that, recently, Rocell open a concept centre in =awala to
its sanitary ware product. It educates people how to use sanitary ware,
what are the import factors. In the other hand the company educated
its material supplier, how to identify ood !uality material, how it
should be excavated properly etc.
If we analy2e the knowlede, it can be identi8ed clearly as explicit &
implicit knowlede.
$he explicit knowlede have been articulated & documented. $hese
are production manual, technical speci8cation, 7R manuals,
accountin polices & procedures etc. In the factory context the implicit
knowlede is the critical factor. I would like to point out a marvelous
thin here. Ahen we developed a new tile desin, a new technician
came from Italy. $hat technician was sent by one chemical supplies to
educate us how their chemicals are used. $hen the company also
launched its new production desin in the 8rst time. It the second run
the Rocell technicians could use water instead of that chemical by
chanin the body content. Conse!uently company could reduce the
cost of the tile drastically. $hat is how company used tacit knowlede.
#ome machine operators are also same. #ome time the press machine
made by #/C-I can not be repaired by the technician sent by the
producer. ;ut the one technician of our company was able to make it
correct. Likewise several examples can be pointed out. $his knowlede
become as the power. Power is not somethin that is ac!uired, sei2ed
or shared, somethin one holds on to or allows to slip away. $hen
power creates knowlede.
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>inally I would like to explain somethin more about how manaement
practices systemic thinkin. >ive years ao the manaement was
chaned to new era as I early mention because the top manaement
do not believe anythin without scienti8c truth. If the middle
manaement suest to top manaement about somethin they do
not accept it. $hey need whole information with the reality and the
truth. $herefore I feel that it is enlihtenment of western thinkin.
It is explained early the company faced to a 8nancial crisis few months
ao. /s a result of that the middle manaement ave proposal to
maximi2e contribution of their department. $hey presented their
proposal in the presence of all other senior manaers. $hose pals had
clearly analy2ed the situation or the problem in their point of view. ;ut
the top manaement did not accept those proposals to implement at
that stae. $hey took this problem as a whole and found solution.
Ahat they did was, they decided to close production line for two
months until the stocked built up was moved. $he company had faced
to cash Mow problem and millions of rupees had been utili2ed on
unsold inventory. Ahen I analy2e the above matter it seems that what
middle manaement did was reductionism. $hey analy2ed their small
part ave proposals but $op -anaement took it as a whole. Its looks
like 7olism.
/t last but not least, when the company operates its business it does
not says the technical word to the work done. Ahen analy2ed the
situation it clearly shows the theoretical backround.
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Reference
)nn+al Re%ort 3 Ro#al ceramic Lan4a $LC3 2778
Certo ',C, ( Certo ',T, >2776?, @Modern Mana-ementA3 17
th
edition3 $rentice.!all3
*ndia,
/+alit# Man+al3 Ro#al Ceramic Lan4a $LC3 2778
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