IN-BASKET EXERCISE

TIME: 75 minutes
The Organization:

Goku Motors Pvt. Ltd. is one of the leading automobile manufacturers in India. The philosophy behind the huge
success of the organization is reflected in its mission statement which says We are dedicated to quality and
committed to excellence. Goku Motors has recently acquired Panthera Pvt. Ltd. In view of the high demand of
Panthera SUVs which is produced by erstwhile Panthera Pvt. Ltd, the board of directors of Goku Motors decided to
capitalize the market by increasing the production of Panthera SUV to match the high demand. But since the plant of
erstwhile Panthera Pvt. Limited was already manufacturing Panthera SUVs at its maximum capacity, the Goku Motors
board decided to manufacture Panthera SUVs by using two plants of Goku Pvt. Limited. This was followed by a
meeting of all the General Managers (GM) of Goku Motors plants. The agenda of the meeting was to identify two
plants among all the manufacturing units which can be allocated partially for the production of SUV model of the
recently acquired Panthera Pvt. Ltd. At the end of the meeting, the two plants i.e. plant no. 1 and 3 were identified
for allocating the additional production targets of Panthera SUV. The top management is very ambitious about the
acquisition and they are expecting positive returns in the upcoming quarters.

The CEO has made this clear to the plant managers that this acquisition will impact a lot of factors related to people,
processes and culture. Moreover, plants 1 and 3 will have to work on additional production of Panthera SUV but
without increasing permanent worker strength. This will increase the workload per worker. The recognized labour
union- Goku Majdoor Sangh will not be happy with the decision and will definitely create trouble. This may give birth
to a lot of union issues which may impact production.

Production processes related to Panthera SUV has been distributed among plants 1 and 3 such that the components
are manufactured/assembled in plant 1 and are then shifted to plant no. 3 for the rest of the processes till completion.
This will require significant modifications in both the plants such as new machinery for producing the various
components of Panthera SUV along with dedicated assembly lines and inventory storage space for the same. The
management has decided to hire contractual workers to work in the new production lines of Panthera SUV.

Introduction to Ms. Kiran Batra:

Ms. Kiran Batra is the GM of plant no. 1. Consider yourself as Ms. Kiran. You made an excellent proposition in the
meeting about how your plant has the best potential for the production of Panthera SUV. Although you are aware
about the potential challenges associated with the opportunity to execute the additional responsibility, but you also
realize this as an opportunity to shine as a star in front of the top management. You are looked as a role model among
the young managers in your organization although you dont get well along with some people including the GM of
plant no. 3, which happens to be the other plant that has been identified to produce Panthera SUV. You understand
the impact of this acquisition with relation to your plant in the areas of people, processes and culture. The top
management expects you to manage and execute the modifications as soon as possible keeping your existing
operations uninterrupted. You have to understand your increased responsibilities and directly report to the Vice
President - Manufacturing. You have to help Goku Motors realize its full potential after the acquisition. This includes
resolving all the impending issues that have cropped because of this.

A copy of companys structure, with which of course you are familiar, is attached together with an accumulation of
mail and other papers, which your Secretary tells needed your attention. During the course of your attention to these
papers you will be interrupted by messages, which require immediate attention. You will also receive other papers,
which come in by mail or messenger and require some sort of action.

You are asked to write across each paper your instructions to someone on what to do, your answer to the question or
your decision on the subject raised and your rationale behind the decision. You can ask for additional information,
postpone decisions or pass it on to somebody else to take action. Since you may find some paper or message which
reaches you later, could alter your view on something being dealt with, do not hesitate to alter any comment or
decision or to change it entirely just cross through whatever you want to change and then write in your final
decision or comment.
Task:

You are Kiran Batra, the GM of plant 1. After the successful acquisition of Panthera Pvt. Ltd. you had to go for a
rd
family emergency and therefore you were on leave for the last 1 week. It is Aug 3 , 2017 today. You have resumed the
office today and the time now is 09:00 hours currently and you have a meeting scheduled with the VP (manufacturing)
at 11:00 hours. You have then called a meeting of the plant heads of planning and designing, procurement, assembly
line, accounts, supply chain and human resources at 14:00 hours to discuss urgent matters requiring immediate
decisions followed by a meeting with the union leaders in the evening at 18:00 hours.

July
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31

August
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
 ORGANIZATIONAL STRUCTURE:

Akshay Ratan
CEO
Goku Motors

Vice President
Vice President Vice President Vice President Vice President Vice President
Planning and
Sales & Marketing Manufacturing Procurement Human Resources Finance
Strategy

Gangadhar Roy Suyash Contractor Daniel Baretto Kiran Batra Indrani Jha Shahnawaz Khan Rishabh Shukla
GM GM GM GM GM GM Head - Central
Durgapur Salem Rajkot Jamshedpur Pithampur Vijaywada Planning

Atishay Jain
Deputy GM

Arjun
Ranjan Patel Ankur Patra Karan Rahul Agrawal Amit K Singh
Human Resources
Safety Head HR/IR Manager Finance Head Accounts Manager Operations Head
Head

Rajesh
Safety Officer

Vice President
Planning and
Strategy

Rishabh Shukla
Head - Central
Planning
 I1

E-MAIL

SUBJECT: Regarding replacement of safety equipment 02/08/2017

From: rajeshso@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

The safety equipment of our workers needs a replacement as it is in a poor condition and may breakdown any day.
The vendor (Ram traders) is ready to offer a festive discounted price for orders due 2 weeks later and if we order now
then we wont be eligible for the discount. I have discussed with our service team, they can do some temporary
overhauling of the equipment which may last for another 1-2 weeks without breakdown. Kindly guide me with the
proper course of action.

Regards

Rajesh
Safety Officer, Plant 1
 I2

MEMO

From: Ankur Patra,

HR/IR Manager- Plant 1

To: Kiran Batra,

General Manager Plant 1

Date: 27/07/2017

Subject: Issue with the workers

Hi Ms. Kiran,

The recent acquisition resulted in a lot of modifications in the organization and especially in the plants to which
the production was allocated. While the regular workers of Goku motors had been using the same uniforms and
safety equipment from a long time, the contract workers were issued new uniforms which were similar to
regular workers uniform and a brand new safety equipment kit. This created a sense of jealousy among regular
workers and strengthened their hatred towards the contractual workers.

Kindly suggest forward action.

Regards

Ankur Patra
HR/IR Manager- Plant 1
 I3

MEMO

From: VP- Manufacturing

To: Kiran Batra,

General Manager Plant 1

Date: 27/07/2017

Subject: New plant in Bhubaneswar

Hi Ms. Batra,

The board has decided to establish a new plant of Goku motors at Bhubaneswar, Orissa. The committee has mixed
views on the technology to be used for manufacturing. As your plant is partially equipped with Panthera production
technology, you are in the best position to tell us whether we go ahead with our existing Goku plants technology or
we implement Panthera production technology. It is to be noted that the latter involves high costs but delivers great
efficiency. Kindly give your recommendations.

Regards

Amit
VP- Manufacturing
 I-4

E-MAIL

SUBJECT: Budget Allocation 29/07/2017

From: karanfin@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,
After updating the balance sheet, Rs. 1.5 million is found to be remaining for the ad hoc budget.

Following are the areas where the ad hoc can be utilized:

1) Training and Development of the workers and the management.

2) Updating new database management software for the plant.

Kindly recommend the best investment option among the above mentioned.

Regards

Karan
Head Finance, Plant 1
 I5

E-MAIL

SUBJECT: Manpower vs production target achieved report 03/08/2017

From: Ops@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

The manpower vs production targets achieved data required by you for last week is as follows:

Date Manpower Production target achieved (%)

25/07/2017 250 80%
26/07/2017 265 85%
28/07/2017 244 75%
29/07/2017 255 82%
31/07/2017 260 85%
01/08/2017 252 81%
02/08/2017 257 85%

Regards

Amit
Operations Head
Plant 1
 I6

E-MAIL

SUBJECT: Safety Equipment condition 02/08/2017

From: BalajiR&D@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

As per the safety audit done last week in your plant, the report shows that some safety equipment is not up to the mark
and you are advised to discontinue its usage. Whereas the rest of the equipment is fine and there is no need for its
replacement.

Regards

Balaji
Manager R&D
 I -7

E-MAIL

SUBJECT: Recommendation for investment strategy 29/07/2017

From: karanfin@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

The following matrix shows the trends for the input costs for Implementing T&D and Updating database software
vs their respective benefits.

Average stats
for Indian
automobile 2011 2012 2013 2014 2015 2016
companies
Input cost for
Rs. 0.7 Rs. 0.85 Rs. 0.9 Rs. 1 Rs.
Implementing Rs. 0.95 million
million million million million 1.15million
T&D
%increase in
production 3% 5% 4% 5.9% 5% 6.2%
target
Input cost for
Upgrading Rs. 0.7 Rs. 0.85 Rs. 0.9 Rs. 1 Rs.
Rs. 0.95 million
database million million million million 1.15million
software
%increase in
production 2% 2.5% 3.5% 4% 5.8% 6%
target

Kindly recommend the proper strategy for investment.

Regards

Karan
Head Finance, Plant 1
 I8

E-MAIL

SUBJECT: Production Target Matrix Report 03/08/2017

From: amitops@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

As per your request, I am hereby sending you the production target matrix of last 2 weeks for both Goku
SUV and Panthera SUV.

Date Goku SUV Panthera SUV

(components deliverables in units) (components deliverables in units)
Target Achieved Target Achieved
st nd st nd st nd st nd
1 Shift 2 Shift 1 Shift 2 Shift 1 Shift 2 Shift 1 Shift 2 Shift
20/07/2017 25 20 24 19 26 20 25 18
21/07/2017 26 20 23 18 26 21 24 17
22/07/2017 25 21 24 17 26 20 25 19
24/07/2017 25 20 23 19 26 21 25 18
25/07/2017 26 21 23 18 26 20 24 19
26/07/2017 28 24 17 9 29 24 26 22
27/07/2017 28 24 13 10 29 24 27 23
28/07/2017 28 25 11 8 29 24 25 23
29/07/2017 29 24 13 11 29 24 27 22
31/07/2017 28 24 12 10 29 24 25 23
01/08/2017 28 25 13 9 29 24 27 22
02/08/2017 29 24 13 11 29 24 27 23

Regards

Amit Kumar Singh

Head Operations, Plant 1
 I9
FAX MESSAGE

1/08/2017

Miss Batra,

The team of welders working in the production line of Goku SUV has lost their safety gear and therefore, they cannot
continue to work without proper safety. When I enquired, few of them said that procurement of new safety gear will
take a lot of time as there is not enough safety equipment in the storage. So as a result, the work has been stopped.
Though, I would like to bring to your notice that the nature of activity which the welder group has to perform is in the
lower degree of hazardousness but at the same time, is a crucial activity which needs to be executed in the stipulated
time to avoid losses of time and money.
Please suggest whether the welder group should be allowed to continue to work without safety for this particular task
considering the importance of the activity.

Regards
Ranjan Patel
Plant Safety Head
 I 10

E-MAIL

SUBJECT: URGENT 02/08/2017

From: atishaydgm@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

The metallic scrap which comes out as a waste from the manufacturing process ranges from 15-25% range of the total
production as a thumb rule. In the last 2 quarters the scrap quantity has dipped up to 8-10% twice. However, the
operations report (which shows scrap quantity) and the sold scrap (scrap quantity sold) documents do not show a
mismatch. This unusual trend may be because of the illegal scrap selling which happens quite a lot in manufacturing
industry. Require your attention over this anomaly.

Regards

Atishay Jain
Deputy GM. Plant 1
 I 11

FAX MESSAGE

01/08/2017
Ms. Batra,

The procurement of new safety gear for the welders will cost almost double if done right now, moreover it will
require a lot of time. Welding involves two teams namely- fitters and welders who use similar safety gear.
Moreover workers are not allowed to enter the production area if they dont have their safety gear with them.

The production line is in chaotic situation. Tell me how to proceed?

Regards

Ranjan Patel

Plant Safety Head

 I 12

MEMO

From: Rishabh Shukla

Head Central planning department,
Goku Motors Private Limited

To: Kiran Batra,

General Manager Plant 1

Date: 28/07/2017

Subject: Recommendation for assembly line in-charge

Hi Ms. Batra,

This is to inform you that the partial production target of Panthera SUV has been allocated to your plant. You have to
prepare a budget analysis for the integration of one more dedicated production line for Panthera SUV. You are
required to make a proposition for the same. Kindly reply with a precise statement covering your outline of the
proposition and important points which you want to touch upon while creating the proposition.

Regards

Rishabh Shukla

Head Central planning department,

Goku Motors Private Limited

 I 13
E-MAIL

SUBJECT: Missing Safety Gear Lead 02/08/2017

From: ankurhr@gokumotors.com

To: batragm@gokumotors.com

Hi Ms. Batra,

This mail is with reference to the incident where the safety gear of the welding team was missing and because of
which the organization had to face loss of time and money until the issue was resolved.

One of my trusted source from within the labour union has informed me that the incident was planned and executed by the
union leader Pranav Singh of Goku Majdoor Sangh (GMS). He did this to display his resent about the engagement of
contract labour for the production of panther SUV. Kindly suggest necessary action keeping in mind its implications.

Regards

Ankur Patra

HR/IR Manager- Plant 1

 I 14

MEMO

From: Amit Kumar Singh

Head Operations, Plant 1

To: Kiran Batra,

General Manager Plant 1

Date: 26/07/2017

Subject: Assembly Breakdown

Hi Ms. Kiran,

The production capacity of plant 1 is not completely utilized, the production targets were increased so as to
realize the full capacity of the plant. The line supervisors communicated the updated targets to the workers
and the manpower as well as material resources were allocated accordingly.

For the last few days the operations ran smooth with decent production rate but today morning, one machine
broke down and stopped functioning completely. This has created a bottleneck in the production of Goku SUV. The
production line is getting jammed by each new component.

Kindly provide a solution for the above stated problem.

Regards

Amit Kumar Singh

Head Operations, Plant 1

 I 15

E-MAIL

SUBJECT: Recruitment issues at new plant at Bhubaneswar 02/08/2017

From: dgmbbsr@gokumotors.com
To: batragm@gokumotors.com

Hi Ms. Batra,
You must be knowing that the Bhubaneswar plant also comes under your purview until a new GM is appointed here.
The local MLA is pressurizing us to give employment to 20 of his associates, which is against the company policies. He
is the one who indirectly controls the labor market and local suppliers/vendors. Moreover he has threatened us with
direct consequences if his demands are not met. Kindly recommend me the proper course of action

Regards

Ravi
Deputy General Manager-
Bhubaneswar plant
Response Sheet:

Item Response Rationale

10

11

12

13

14

15
Identification of top three issues and development of an action plan

Issue 1

Action Plan 1

Issue 2

Action Plan 2

Issue 3

Action Plan 3