They placed orders on the lowest bidder. The names of places, products and people are disguised. It had desired to expand its supply to the market by subcontracting orders to other manufacturers. The prime problem in operations was absenteeism as the workers used to abstain from work without notice. The temperature needed for baking varied from stage-to-stage as the quality of biscuits depended on the care with which the temperature was maintained at different phases of baking.
He started his own business with the dealership of candies produced by others. The demand for buscuits was growing at more than 15 per cent per annum. APL had stressed in its advertisements that its biscuits contained milk solids. It had promised the sub-contractors that it would compensate them adequately in terms of volume of business and conversion charges. These practices had enabled the company to minimize wastage and improve responsiveness to customer’s orders. The proposal had both advantages and disadvantages.
However, it wanted to retain full control over the quality and production processes of biscuits produced for them. In the new syudy environment, KCPL got stuck in the middle. The allocation of responsibilities among the family members was clear. The other questions were: They had to decide soon as they were not sure whether other biscuit manufacturers were also interested in the opportunity and would out beat KCPL in approaching APL. The quality of materials received was checked in a laboratory for impurities and existence of metal particles.
The company sought the advice of technical consultants on issues relating to capacity expansion, equipment selection, and productivity improvements.
During the same period eight new units were set up in the organized sector in UP to produce biscuits. The sons of Alok, Vivek and Stjdy were studying in school. In there were two large national and six regional manufacturers.
The large institutions preferred the other three brands. Some of them were set up in the backyards of entrepreneurs under unhygienic production conditions.
It offered to reimburse the raw material expenses as per its norms of consumption and pay a conversion charge of Rs. Alok Kumar, the eldest son of Mohan Kumar, joined the business in after completing his graduation in commerce. They do not cover the impact of Pearson contract. Would there be interference? These practices had enabled the company to minimize wastage and improve responsiveness to customer’s orders. KCPL could not compete on costs as its costs were higher than cade of the other manufacturers.
Pearson promised an off take of to tonnes per ocpl and a conversion rate of Rs. It also offered to supply the pre-printed packing material with APL name.
The price of A-One biscuits was two-thirds of ‘Good Health’ biscuits. However, competition increased with the start of 70 units in the unorganized sector between and In fact, the family name was dependent on the success of the biscuit line.
It did not provide any technical guidance. As competition increased the net profit margins came down. He had worked with Pearson before starting his consulting company. KCPL depended on both permanent and casual workers for its operations. It also hoped to learn new tools of quality management.
It had desired to expand its supply to the market by subcontracting orders to other manufacturers. Help Center Find new research papers in: The family members earned a salary. Alok Kumar looked after finance and liaison functions; Vivek looked after human resource management and manufacturing; and Sanjay was responsible for marketing, logistics, and administration. It was a leading player in the Western and Eastern cas.
(PDF) Case Study Kanpur Confectioneries | Kunal Relwani –
Pearson relied on the expertise of KCPL. The overall operations were supervised by Arun Kapoor, Manager Operations. It also decided that it would not set up its own manufacturing facility. They even imitated the packaging style of the leading brands.