Assignment on Lean Manufacturing practices in Sri Lanka

MMS 5203 Operations Management

Prof. T.M.B. Palawatta

By
V.K.M.Chandima
5266FM2017094

MBA/ MPM/ M Sc 2017

Table of Contents

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Executive Summary ................................................................................................................... 3

Introduction ................................................................................................................................ 5

Vision ......................................................................................................................................... 6

Values ........................................................................................................................................ 8

Mission....................................................................................................................................... 9

Goals ........................................................................................................................................ 10

Environment Analysis .............................................................................................................. 11

SWOT Analysis ....................................................................................................................... 12

Objectives ................................................................................................................................ 14

Strategies .................................................................................................................................. 15

Action Plan............................................................................................................................... 17

Conclusion ............................................................................................................................... 19

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Special Note

I would like to kindly inform you that NSBM management issued a copy of
Corporate Plan for the assignment purpose, but they didn’t allow me to attach
that copy due to the confidential issues of some information.

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Executive Summary

I selected the Corporate Pan of the National School of Business Management in order
to give an independent analysis on this study. First parts of the report have been
allocated to the give a brief introduction about the organization covering its history,
products etc. Then the report is focused to present the importance of the Planning in
general view including the standard planning process. Then moved to evaluate the
Corporate Plan of the selected organization.

In the Evaluation, report discuss some weaknesses in Vision, and Values they have
included in the corporate plan. Apart from that detailed analysis on Goals,
Environment Analysis, Objectives, Strategies and Action Plans is presented. One of
remarkable point in their corporate plan is that they have developed the in a logical
order which is very much similar to what we have learnt in the classroom. At the end
of the report, small note was allocated for their financial budget, Marketing Plan etc.

Conclusion has been given by taking holistic view of the Corporate Plan. After
evaluating bigger portion of the corporate plan, it is concluded that the corporate plan
is up to the standard and it c be considered as a good one.

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Introduction

National School of Business Management was incorporated by NIBM under the

power vested to it through Law No.23 of 1976 enacted by the Parliament of Sri
Lanka, after obtaining the approval of the cabinet of ministers through a paper
submitted by the Ministry of Youth Affairs and Skills Development.NSBM
commenced its official activities on March 01,2012 at No. 309, High Level Road,
Colombo 05.

Innovation is key at NSBM as they understand the importance of originality and

creativity in this global village of a world. The education system at NSBM is
therefore designed with the intention of ensuring that all our undergraduates are fully
prepared to face any challenges the world has to offer. In accordance with this
philosophy, NSBM offers UGC approved degrees in addition to the foreign degree
programmes in partnership with University College Dublin, Ireland, Plymouth
University, UK, and Limkokwing University, Malaysia.

With the new project implemented by NSBM as NSBM green university town which
has been established in Pitipana, Homagama which was approved by the Ministry of
Finance, NSBM on 26th October 2016 it has been exposed for a mass scale education
market with various new strategies and plans with an extensive corporate plan.

“By failing to plan, you are planning to fail.” (Benjamin Franklin (1706-1790).

The aforesaid statement is giving enough understanding regarding the importance of

planning. Planning is a vital task which is not limited to a corporation or organization
but vital for each and every individual in the world, According to the above statement
by Benjamin Franklin, if you are not planning in your life it is totally equal to the
failure of yourself. Society which we are currently living provides enough examples
and evidences about individuals, organizations, families who are suffering different
ways due to failure of planning.

Planning can be identified as not an individual task, but as a Process. Planning can be
defined as Process of establishing goals and objectives as well.

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The process of planning may be different based on the entity which we are planning,
under which environment attempt to plan the nature of planning. Since we are more
focused on planning in corporations, this report narrow down the process of planning
to the Corporate Planning process only.

The process of corporate plan is again may be different based on the nature of the
organization or nature of the industry. Though there may be slight differences,
following indicates the commonly accepted process of corporate planning which can
be used by any organization in the world. (Refer Annexure 01)

The very first step of any corporate plan is to discover of the Vision. After
discovering the vision of the company it should clearly identify the Mission of the
company based on the vision identified in step no.01. Mission provides good basis to
identify Goals for the organization based on Key results Areas which are specified
areas for the company. Environment analysis plays a vital role in corporate plan and it
should come after that step. Based on the environment analysis only we can identify
the strategies and the objectives. Based on objectives, Action plan, and control Plan
and the Financial Budgets can be developed.

After presenting the standard way of developing a corporate plan, selected company’s
process of the corporate plan is presented. (Refer Annexure 02)

In addition to the above process of planning in NSBM corporate plan they have
included in detail plan for their training and development and the budget plan for that
programme.

Element by element analysis is presenting first and the overall analysis will be
provided afterwards.

Vision

“To be the foremost business school to create future leaders”

Vision statement of NSBM which has been discovered in year 2012 has been
provided by above statement.

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Vision is foreseeing something now about the unseen future. Vision of any
corporation must be discovered rather than developed. Though anyone can develop
goals or objectives, anyone cannot develop a vision since it is a dream of the founder.
Dream can only be seen, cannot developed. Vision is a dream embedded in the mind
of founder. It cannot be change time to time since deeply embedded dream cannot be
removed from someone. This dream is very colourful since founder is dreaming only
the positive aspect of his dream.

Another opinion regarding vision is that it is like a guiding star or light house which
only shows the direction to others. Vision is there never to reach but ever to peruse.

The vision of the NSBM provides the very straight forward statement as becoming
foremost business school. The oxford dictionary gives the definition for foremost as
“most prominent in rank, importance, or position”, “before anything else in rank,
importance, or position; in the first place.”

Foremost equals the best or being no.01 in somewhere. Becoming number one
business school is very brave and clear statement. The founder of the business school
may has a very clear dream of becoming the number in their capacity.

Another plus point in the vision statement is that it does not contain any time
boundary which we can noted in many vision statements in Sri Lanka. NSBM has not
defined any time frame for its vision like being number one by 2020 or 2030.

Another good value in the vision statement is that they have not specify any
geographical locations in their Vision like being number in Sri Lanka or in the region.
They have not mentioned any geographical limitation means they want to become
best not only in Sri Lanka, not only in Asia but become no. one in the Universe one
day.

When we deeply analysing this vision statement, it is clear that the vision statement is
not a very much broad one as per Disney or Merck’s vision statement. “Make people
happy” itself gives a very broad thinking of the founder. It is not defined any
operations or what Disney currently engage or even about in which industry they are
currently presence. NSBM vision is somewhat narrow in that case since it is
mentioned that NSBM is there for create future leaders. And also it is mentioned the
words called “Business School”. This narrow down the market which it can serve in

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future. NSBM cannot start medicine degrees in future since it only generate business
related leaders.

In the broader sense, this Vision statement provides a good insight into the future
though it contains some weaknesses.

Values

Values are “Basic convictions about what is right and wrong.” Core values of any
company never changes though it changes its operations, markets etc. Value can be
defined as the mirror image of the company showing how they are thinking, and
acting in the society.

NSBM has identified some values in their corporate Plan as follows;

1. Engage in the transformation of lives

2. Achieving academic excellence
3. Research orientation
4. Networking across the globe
5. Inspired to learn
6. Nurturing innovation and change
7. Growing with the community

The importance of the first value would be much higher if they include the idea of
transformation of lives into better ways rather than just mentioning the
transformation. Networking across the globe can be considered as one of goals rather
stating it as a value of the organization. It is one of their target to increase foreign
partnership in their degree programs. Growing with the community is another
ambiguity value since it is clear whether they are grow with the community or they
support community to grow.

Research orientation and Nurturing innovation and change is two good values among
them since it contains some weight and convince some benefits to the society.
According to my view it will be perfect if they have presented their values in a
broader view considering the interests of their stakeholders. Giving more
consideration to the society would be important in identifying the values of them.

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Mission

“Contribute to building a prosperous society through education, Learning and

research”
Mission is simply an assigned task of a company which should be continuously
completing in order to achieve its vision one day. Mission is “The fundamental,
unique purpose that sets a business apart from other firms of its types
andidentifies the scope of its operations in product and market terms” Mission
gives answers for the following questions as well.

1. Why company exists in the world

2. How the company differentiate itself from other players.

Another aspect is that when formulating a vision it should cater for the management
values, Interest of owners and interest of society. Any mission statement should be
included basically three items. Those are,

1. Fundamental Purpose
2. Business Scope
3. Business Philosophy

NSBM Mission provides information on their Fundamental purpose. Their

fundamental is building a prosperous society. Their Business Scope is given in 03
areas called education, learning and research.

According to my view their mission statement clearly shows why they are stay in the
society. They are for make the society prosperous. This reason of existence does not
show any monetary benefits for the organisation directly but emphasize their
responsibility towards the organization as well.

It indicates values of the management and the interest of the society meanwhile
indirectly addressing owner’s interests.

The Mission statement of NSBM is not a lengthy one like other companies which
provides very detailed description about their products.

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Goals

NSBM has identified mainly 04 goals for the period of 2013 to 2018 in the corporate
plan. Those are
1. Produce graduates in demand locally and internationally with the best
practices of formulating academic programs and delivering them.

2. Link with industry and global knowledge centres based on the win – win
partnership.

3. Develop an environment conducive to the achievement of the nation’s

intellectual, cultural and social aspirations on par with high living
conditions.

4. Continually improve the institutional corporate growth based on the

capital and human resource investment.

As per the theory related with corporate planning, Goals of any organization should
be identified based on the key Results Areas of the company.“Key Result Areas”
(KRAs) refer to general areas of outcomes or outputs for which the organization is
responsible. There are seldom more than 03 to 07 key result areas in any business.

Based on the goals of the NSBM we can clearly identify test they have four Key
results Areas as Teaching – Learning, Foreign Affiliation, Development of world
class Infrastructure Facilities and Sustainable Growth.

First goal identified is addressed the learning and teaching aspect of the university
and. There, they have the long term target of creating high calibre graduates who suits
for the dynamic environment and foreign employment as well.Develop the knowledge
and technical and conceptual skills of students in the fields of Business, Computing
and Engineering, Improve the communication and critical enabling skills, personality,
commitment and ethical conduct development are some of areas highlighted under the
goal number one.

Secondly NSBM has the long term goal of attracting more and more foreign
affiliation to the university. Currently NSBM has the foreign partners called,
Plymouth University, UK, University College of Dublin, Ireland and Limkokwing

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University, Malaysia. Through attracting reputed universities and build win - win
situation has become one long term goals of NSBM.

Development of infrastructure other essential facilities to students and to the staff to

feel the real and modern university life is another goals which identified as number
three. This goal is fully dedicated for the development and constructing of the Green
University at Pitipana, Homagama since this is mega construction being placing for
the first time in the nation.

Last goal has allocated for the Sustainable growth of the company which has more
towards the operational excellence through world class business practice. They have
the targets to gain returns by investing human and capital in the future. Attracting the
excellent academics and maintain the financial viability has taken as major
consideration in this goal.

Environment Analysis

NSBM has done its environmental analysis in two stages which is shown as below.
Figure 03 – Environment Analysis

Market
Environment Analysis
Analysis Situational
Analysis

Under the Market Analysis of the university, NSBM has provided in detailed analysis
of the higher education environment of Sri Lanka which they have currently
operating. They have identified three types of higher Educational Institutions such as

1. National Universities
2. Non University Government owned Institutes
3. Non university private sector institutes

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Environment analysis briefly introduce the each category with prevailing examples.
After Identifies the above three main categories they have done an in detail analysis of
Government universities admissions from the year 2000 to 2010. With the statistics of
University grant commission, they have presented the burning issue of lack of paths
for the students who misses the opportunity to enter into National universities.

The latter part of the environment analysis has been has focused on the Fee –Levying
Higher Educational Institutes of Sri Lanka. In that analysis they have mentioned the
number of courses offered by Fee – Levying Institutes and the normal prices they are
charging for the courses.

Finally NSBM has identified the Targets beneficiary of the organization and present a
gender ratio of the target market as well.

According to my view, they have done in detailed and comprehensive analysis of their
market. Only thing I can notice as a weakness is that they have not clearly specify the
degree programs they can offer in future. They have not identified the target market
based on the education stream, what are the lacking and insufficient degree programs
they can cater for the un - fulfilled demand. In Sri Lanka. If they have done their
analysis up to that level this analysis, this episode of the Corporate Plan would be
perfect one undoubtable.

Situational Analysis has provided the basis for the SWOT profile presented by the
University. The situational analysis (SWOT), root cause analysis and gap analysis are
based on the discussions, brainstorming sessions and planning committee meetings
with top management, all employees of the NSBM, and other stakeholders.

SWOT Analysis

Thorough SWOT Analysis has been presented by the Management of NSBM after the
analysis of Environmental Analysis, they have identified at least 10 to 15 points for
each category of strength, Weaknesses, Threats and Opportunities.

As the main strength, NSBM has identified support granted through the NSBM. The
legacy of NIBM is directly passed to the NSBM from its inception creating a positive
public image 45-years’ experience of NIBM has set a solid foundation for the NSBM
to continue its academic activities properly as its degree school. Another major

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advantage they have identified is the Government recognition for the degree
programmes awarded by the NSBM. What they have not paid the attention is the
current location they have had Nugegoda where it was an urban area which anyone
can easily reach and find even. The only pitfall in the placement Nugegoda was that
the limitation of the spaces available.
The limited number of academic, executive and non – executive staff is major
weakness in NSBM since they have in the market only for six years period yet. Lack
of staff training and development programs and the development of research work is
limited in NSBM. The main weakness they have currently possess is the lack of
infrastructure facilities available in the current premises. Addition to these things
possessing few number of foreign affiliation is also can be counted as weakness in
NSBM.

Favourable government policy in creating Sri Lanka as the “Knowledge Hub” in Asia
is one of prominent opportunity available for the NSBM which will pave path to
numerous avenues. Continuously increasing of the cost of foreign education and
changing attitude of parents on full time study abroad has also identified as main
opportunities. I think they have identified the opportunities correctly.

Continuous increase in cost of living in Sri Lanka has become one of main threat for
the higher education institution like NSBM. Conservative mind set towards fee-
levyingeducation and the politicized student movements opposing, fee-levying
education especially in the national university system has become major threat for the
NSBM. Conservatism and different opinion bearing people become a severe this kind
of institutions in Si Lanka nowadays. They have identified the threat coming from the
competitors in market as well.
After analysing the environment, in NSBM corporate plan they have a gap analysis
through performance indicators. They have some gaps in the current scenario based
on some performance indicators such as Human capital development, Technology,
physical environment and Finance.

Identification of goal have led to identify the objectives and relevant strategies of
NSBM can be visualised using this diagram.

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Figure 04 – Flow of Planning of NSBM

Objective
Goal 01 Stragy 01
01
Objective
Goal 02 Strategy 02
02 Action
Goals Plans 01
Objecticve
Goal 03 Strategy 03
03 Action Plan
02
Goal 04

Objectives

For each goal identified earlier, NSBM has identified 3 to 4 different objectives. The
summary on identified objectives for ach objectives is given below.

Table 01 – number of Objectives Identified

Goal Number of Objectives
identified
Goal number 01 04
Goal number 02 02
Goal number 03 07
Goal number 04 03

Goal number one as producing high caliber graduates through proper teaching and
learning, identified objectives such as Develop the knowledge and technical and
conceptual skills of students in the fields of Business, Computing and Engineering,
improve the communication and critical enabling skills, personality, commitment and
ethical conduct, develop competencies in creativity and innovation through research
and development, develop the adaptability to global business environment.

Goal number two more focus on the obtain memberships, accreditations and enrol
more foreign students.

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Goal number three which has dedicated for the facilities and sophisticated
infrastructure they have set objectives such as building library facilities with
international standards, investing in more CSR activities and promote green university
initiatives.

Sustain the financial viability in the long term, attract and develop academics,
executives and non-executives for sustainable growth, enroll students as for the
estimation are for there to achieve to goal number which is regarding the sustainable
growth of the organization.

The identified objectives are not for the short term and cannot be seen any SMART
characteristics there. In the stage of action plans only we can notice the short term
targets of the organization with the specific time frame given. This somewhat
deviation of the theory we have learnt in the classroom.

Strategies

“The broad programme for achieving an organization’s objectives and implementing

its mission.” (Stoner & Freeman). This definition for the strategy has clearly
identified by the NSBM management since they have developed the strategies based
on the objectives they have developed.

Table 02 – Number of Strategies identified

Goal Number of Number of

Objectives Identified Strategies Identified
Goal number 01 I 3
II 3
III 3
IV 3
Goal number 02 I 1
II 1
Goal number 03 I 3
II 3
III 2
IV 2
V 2
VI 2
VII 1

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 Goal number 04 I 3
II 4
III 3

Above table is giving the rough idea regarding the number of strategies identified by
the NSBM based on the objectives.
Each course of actions they have mentioned is being in line with the objectives and it
clearly mention how the specific goals can be achieved.
Herewith the report presents some examples of strategies they have taken up to
achieve objectives in the long term.

Example 01:-

Objective 3.1
Develop conductive infrastructure facilities on par with world class universities.

Strategy 3.1.1 Build the university campus on a brand new location.

Strategy 3.1.2 Upgrade the existing premises to accommodate the demand.

Strategy 3.1.3 Setup a high quality maintenance system for the smooth
functioning of the university.

To build up the infrastructure facilities which in par with the international standards
they have identified the three strategies. Build a new campus on a separate location is
a good course of action if it can be realised. Apart from that upgrading the existing
premises is also a viable strategy to give good atmosphere to the students as well as
for the staff. Developing facilities is not enough for smooth functioning of it. Having
a quality maintenance system is also important to keep the facilities at good standard.

Example 02:-

Objective 1.3

Develop competencies in creativity and innovation through research and

development.

Strategy 1.3.1 Expand the Research and Consulting Unit (RCU) at

NSBM to create and innovate knowledge.
Strategy 1.3.2 Introduce an International Symposium on Business
Management (ISBM) at NSBM.

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 Strategy 1.3.3 Introduce the NSBM Journal of Business Management:
National Journal of Business Management (NJBM).

To achieve the objective of developing competencies in the Research and

Development, it is good enough to expand the RCU unit at the campus. Introduce a
Journal of Business Management is also a very practical strategy which can be
implemented to develop the creativity.

To my knowledge they are success at developing the strategies according to the

objectives.
According to the Corporate Plan of NSBM, in a summary we can show the flow they
have followed up in achieving the goals can be indicated like follows.

Goals

Objective

Strategy

Action Plan

Action Plan

For each strategy identified they have given a comprehensive analysis of action plans
in the corporate plan.
All the actions plans are categorised into four main plans namely,

1. Operational Plan
2. Human Resource Plan
3. Marketing Plan
4. Financial Plan

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Under operational they have discussed all then Action Plans to be taken to achieve the
identified strategies.

Example:-
Table 03 – Example for Action Plan

Strategy 1.4.2 Establish career Guidance and Industrial Training

Unit
Activity Time Frame Responsibility
1.4.2.1 Appoint a coordinator for August 2013 CEO
CGITU
1.4.2.2 Develop a procedure manual September 2013 Coordinator
for CGITU
1.4.2.3 Identify and enlist Continuous Coordinator
prospective partners for
Industrial training
Continuous
Coordinator/Manager
CGITU

1.4.2.4 Sign Memorandum of Continuous CEO

Understanding (MOU)with
industries
1.4.2.5 Upgrade the existing Daily September 2013 Coordinator
Diary and other documents
1.4.2.6 Coordinate all activities Continuous Coordinator
related to Career Guidance
and Industrial Training

Extract of Corporate Plan of NSBM (page no.48)

As per the shown example, management of NSBM has identified the correct flow of
developing the actions plans. Action plans are Specific, Measurable, Achievable and
Realistic and Time bounded.

Appointing a Coordinator and sign MOU etc are particular and measurable. Those
actions are not something which are unrealistic but can be achieve with dedication
and enthusiasm. As per the given format all those action plans are very much short
term and time frame is also given.

According to the above facts there are enough evidences to say that Action Plans are
short term and with characterises of SMART.

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Under the Human resource Plan, they have forecast the number of professors,
Associate Professors, Senior lecturers and Lecturers in the coming years.

In the Marketing Plan there is a forecast for the number of students in each intake in
coming years.

Finance plan has emphasizes, how would be the Financial performance of the
company in the coming years.

As we have learnt in the theory after analysing all the actions plans it is better to move
to the Functional and Operational Plans. So NSBM has gone up to that level of
planning in their Corporate Plan.

Finally in their corporate plan, they have given in detail information regarding how
they are going to train their staff in future including the time frame for each activities
in T & D program with the allocated budget also.

Conclusion

In comparison of the process of Corporate Planning what we have learnt and what
NSBM management has developed shows similar features in terms of each element.
In the identification of the Vision and Mission, I have highlighted few weaknesses
and also the plus points.

After identify the Mission they have clearly go through the process of Environment
Analysis, Develop Objectives, Develop Strategies and then action plans for each and
every strategy which shows the characteristics of SMART.

They have developed this Corporate Plan for the period of 2013 to 2018, and there are
enough evidences and witnesses that they have achieved some of mentioned goals.
For example Under the Goal number they have focused to construct a New University
called Green University at Pitipana, Homagama. In terms of executing an
implementing the corporate plan they are successful.

If we take the corporate plan of NSBM at the holistic view, except few weaknesses, it
is a good plan with lot of practicality. Realistic objectives and strategies were there to

19
achieve in the future with time bounded action plans. As overall, Corporate Plan of
the NSBM can be considered as a good one.

Annexure

Annexure 01 - Figure 01 – Corporate Planning Process

Discovery of
Vision

Establishment
of Mission

Establishment
of Goals

Environment
Analysis

Selection of
strategies

Establishment
of objectives

Determination
of Actions

Establishment
of Control Plan

Establishment
of Financial
Budget

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Annexure 02

Figure 02 – Corporate Planning Process of NSBM

Discovery of
Vision

Establishment
of Mission

Establishment
of Goals

Environment
Analysis

Establishment
of Objectives

Development
of strategies

Determination
of Action Plans

Operation Human
Market Plan Financial Plan
Plans resource Plan

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References
1. Business Dictionary(2014),Planning[Online], Available from
http://www.businessdictionary.com/definition/organization.html[Accesse
don:18th November 2017.]

2. Corporate Plan, NSBM (2017)

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