Basic Production

Phase

Production

1.0
Production Indent
Received at factory

1.1
GM Evaluate and
Approve

1.3
Approve

Production Process

Sales dept
sends &
amends PI

2.1
Production Start

2.2
Accomplished

Canceled/Revised/Changed

2.2.2
Residual Material
Returned to Store

2.2.1
Partial Inventory
Update

Yes

Yes

1.4
PM Prepares
Material Requisition
& Scheduling

1.5
GM Approve

No

No

1.3.1
Sent to Sales
Dpt. Revision

1.5.1
Requisition &
Scheduling

2.3
Inventory Updated

2.4
Sales Department
Updated for
Invoicing

Yes

1.6
Material Received
from Store

Business Process Document

Entity
BJ Geotex Ltd.

Name of process
Post sales manufacturing process

Prepared by
Production Department
IT department

Date
May 13, 2015

Version
1.0

PROCESS BACKGROUNG & SUMMARY

Production of BJ Geotex or other sister concerns is manufactured in different factories primarily located
outside Dhaka City. Both the site has manufacturing units for 3~4 sister concerns. For example, BJ
Geotex Ltd. has its production units in a location Barabari 20 KMs away from Banani HO & another at
Mawna 60 KMs away.
The top management decides which units to be used for each sales order, besides management also plans
production without sales order based on market demand and regular customers to shorten the delivery
period. For example, Geo Bags are in regular production for few months matching most common
specification for the government entities.
Production requires raw materials from local market, imported & some inputs manufactured by own
backward linked units. For example USFL produces most of the fiber needed for Geotex, which are
basically produced from plastic bottle and plastic chips.
As soon as production unit receives production indent it plans for manufacturing those products start
from a material assessment & also checks material availability. Based on the approved material requirement
production managers requisite raw materials from the store and starts using those. Every day they report
amount of item created and raw materials consumed. Many times it remains below the standard
requirement and many times it goes above the given requisition, results in material return & additional
material requirement.
Every day supervisors record line wise production & consumption for every product indent eventually that
create final consumption & at the end the products are delivered to store, namely, as there very few
compartmental store. As the reports show production ends, it is considered in store and ready for delivery.
There one unit in each factory which matches the product for packing and picking & issue gate pass after
conforming with sales indent as partial delivery or final delivery.
After that sales department raises invoice against customer. Critical issues arises like,
a.
b.
c.
d.
e.
f.
g.
h.

Contract cancel
Re-do as specification mismatches
Consumption sharply varies due to various reason
Pre-order production
Regular production based on market forecast
Scheduling problem, priority settings
Production disrupted
Huge sample production for marketing sample

Even the confirmed purchase order can be cancelled on different ground at different stages of product life
cycle i.e. delayed delivery, product mismatch, project suspended, quality issue etc. When it happens during
production a large quantity may be moved to store as ready products without order cancelling the Sales
order & the residual raw material of BOM would require returning to store for adjustment.

C.ENTITY DETAILS
Ref Main Entities
1
Sales Department
Head office, Banani
2
Factory offices
Mawna & Barabari
3
Accounts Department, HO Banani
D. PROCESS DESCRIPTION
Ref
Process

X-Ref

Responsibilities
Conduct Marketing & Sales operation
Manufactures product as per product
indent & delivers to client
Collection of Payment & settlement

X-Ref

Process Description

Sales department sends production indent after being approved from MD/Ed
1.1

Production Indent Received at

factory

1.2

GM Evaluates and Approves

1.3

If Approved

1.3.1

If not approved

1.4

PM Prepares Material Requisition

& Scheduling

The factory GMs receive the Product

Indent & checks for the availability and
decides when it is right time for production
After careful scrutiny GM & DGM checks
the raw material status & other requirement
for production viability
If approved, then it is given to production
head for assessing the material requirement
based on set recipe and recent adjustments
If GM finds it is difficult for any reason it is
send back to sales department for further
improvement where needed.
Sales department after making necessary
adjustment or obtaining approval from MD
re-submits the PI as is for production
taking in to consideration mentioned
weaknesses.
The production manager prepares a
material requisition which factory head/s
approves, even though many corrections
take place here.
Even though AX demands preparing BOM
at this stage but it is observed that at
factory at is being recorded post facto, so
the material issue is not updated real time.
The fear is making too many adjustments
of the BOM, as the recipe doesnt work
here very precisely so multiple requisition
have been seen required or material return
to store.

1.5

GM Approves

GM approves the requisite material and

allows the schedule for production.
Weakness is even though AX intercepts
here but store management based on BOM,
multiple requisition, material return,
standard material recipe and consumption

D. PROCESS DESCRIPTION
Ref
Process

1.5.1

Revised Requisition & Scheduling

1.6

Material Received from Store

2.1

Production Start

2.2

Accomplished

2.2.1

Partial Inventory Update

2.2.2

Residual Material Returned to Store

2.3

Inventory Updated

2.4

Sales Department Updated for

Invoicing

X-Ref

Process Description
deviation nothing configured here in the
workflow.
If GM doesnt approve then he guides
improved requisition and changed
scheduling.
Material is received from store in charge,
here it is not matched with BOM.
As soon as GM approves the PM starts
production finally, as this production
planning is based on line which comprises
of N number of machines currently AX is
not configured in a manner to capture the
production data line/unit wise, rather daily
production is recorded using AX through
BOM journaling.
Management here misses the daily
production status, routing, changes and
alerts are not active.
As every day production, which has
generally 2/3 shifts, is recorded as soon as
the total product of a PI is stored the
systems shows accomplished. During this
period partial product can be taken for
delivery.
Product picking & packing can be done.
If any changes comes to production due to
PO cancellation, QA fail or specification
mismatch, which eventually results in
cancellation of production & sales order as
well, the manufactured product would
increase the inventory as ready products
without order.
Further study required to assess every facet
of the problem.
As PO is cancelled during production the
residual material are to be returned 7
recorded as returned & raw material
inventory to be increased.
As the finished goods are in store,
inventory will be updated.
Sales department will act for delivering the
goods using AX picking, packing &
invoicing.

Print Date and Time

:-

B J GEO TEXTILE LTD.

May 5, 2013 2:34 PN

1

6,KEMAL ATATURK AVENUE

Production lndent
lndent Date
Size
GEO-SHEET

400

GEO-BAG

400

4 Metter

3MM

:-

05-MAY-13

Firty a Oelivery particutarsf o"t5it"

Qtv.
1360 SQM

5000

FU-WANG GROUP LTD

PC

01 91 65761

GEO-SHEET

28OO SQM

Page

07-MAY-13

57

Mr.Mintu shaha
Bancharampur. Burer Bazar.
Rev:Mr. Mintu Shaha
01919413341