HB Furniture

A case
study
Application of People
Resourcing Strategy

Diawar Khan-1635137; Sarmad

Cheema; Awais Malik; Malik Taimoor;
Kamran; Mubashir
Table of Contents

Table of Contents
Background................................................................................................................. 3
Company Profile.......................................................................................................... 3
Company Mission......................................................................................................... 3
In House Design Service of HB Furniture............................................................................3
Company headquarter.................................................................................................... 3
Production Base........................................................................................................... 4
Products and Services by HB Furniture...............................................................................4
Consultancy............................................................................................................. 4
Space Planning......................................................................................................... 4
Procurement............................................................................................................. 4
Manufacturing.......................................................................................................... 4
Delivery & Installation................................................................................................ 4
After Sales Service..................................................................................................... 5
Brief Company TimeLine:............................................................................................... 5
Field of expertise.......................................................................................................... 6
No of Employees at HB Furniture, Before and After Strategic change.........................................6
Problems.................................................................................................................... 8
Solutions.................................................................................................................. 10
Employee Value Proposition/ HR planning Approach...........................................................12
1. Business Plan was defined.......................................................................................12
2. Activity levels were forecasted: By defining The Process Flow.........................................12
Phase 1 Marketing.................................................................................................. 12
Customer Attraction and communication for requirement.................................12
Development of Design proposal.......................................................................13
Determination of BOQ, Pricing/payment requirement, delivery schedule..........13
Customer approval and Go Green Signal...........................................................13
Background Process........................................................................................... 13
Phase 2 Supply Chain........................................................................................ 13
In House Store check and Outsourcing...............................................................14
Material tagging................................................................................................. 15
Material Dispatch............................................................................................... 15
Database management...................................................................................... 15
 Phase 3 Production.................................................................................................. 15
Cut and Boring plan generation.........................................................................16
Order Production................................................................................................ 16
Background Process........................................................................................... 16
Phase 4 Supply Chain, Site Installation.............................................................16
Order Assembly: of finished product and outsourced Build-up parts..................17
Quality and Quantity Check............................................................................... 17
Packing............................................................................................................... 17
Outward shipments............................................................................................ 17
Site Installation.................................................................................................. 18
Background Process........................................................................................... 18
3. Analysis of Requirements, numbers, skills and behaviors...............................18
Demand Forecasting................................................................................................. 19
Supply Forecasting.................................................................................................. 19
Action Planning...................................................................................................... 19
Resourcing Strategy....................................................................................................... 19
Retention Strategy.......................................................................................................... 20
Flexibility Strategy......................................................................................................... 20
Talent Management Strategy............................................................................................. 20
Results........................................................................................................................ 21
 Chapter 1: Introduction

Background
HB Furniture is a premium furniture manufacture and suppler offering unparalleled
spectrum of furniture choices for workplace furniture office, seating, Laboratories, contractual
and various workplace accessories. HB Furniture unveils the best furniture brands for any
commercial workplace making it a preferred furniture provider for office and commercial
projects located in Pakistan. Some of our popular products are office chairs, sofa sets, solid wood
guest seating, Library Furniture, Laboratory furniture, Executive and Managerial Private Offices.
HB Furniture store in Islamabad is spread over 2 floors with total space of 30,000 sq. ft. The
furniture showroom is warm and inviting with its exclusive handpicked pieces, eloquent service
and global appeal.
Company Profile
HB Furniture made a humble beginning as a kitchen manufacturer, a pioneer in Pakistan
in the kitchen making field, has converted itself into a manufacturer of high quality, industrial
furniture. They have served more than three hundred multinational Organizations many
Government Departments with numerous private entities; Their legacy reaches back now almost
50+ years to 1964, when Their company began. The business world has become more complex,
yet they rediscover every day that the truth of their benchmark remains solid and true.

Providing Solutions that works

Their Connected Client whos interwoven in a global economy, expect more from them & they
expect more from the company for providing better quality work environments & solutions day
after day. HB prides itself as key Office furniture manufactures in the Northern Pakistan, as they
have adopted state of the art digital production technology.
Company Mission
HB Furniture is constantly focused to deliver better products that meet the clients
expectations and needs.
In House Design Service of HB Furniture
A tool offered by HB Furniture to its clients by means of which, the client can visualize
and be sure of his/her needs, before the projects launch. Client at HB Furniture are provided with
In-House interior designer & CAD experts who sits with the customers & understands their
distinctive needs & requirements.
Company headquarter
HB Furniture headquarters and its Production plants was in capital city of Islamabad, at
the industrial sector of I-10/3. The physical manufacturing facility covered approximately
65,000 square feet and was equipped with the most advanced Woodworking technologies and
machineries. Recently the Showroom have been shifted to Blue area and completely renovated
housing high end-offices and meeting areas, while the production base was shifted to Rawat
industrial Area.
Production Base
HB Furniture deploys a quality program that provides with a platform of designers and
suppliers to our plants so that timely delivery and impeccable design can go hand in hand. HB
Furniture quality program can successfully manage many collections maintaining their own
features and peculiarities. HB Furniture Production Centre is Equipped with the latest CNC
systems and technology and with a local traditional skill base, they have the flexibility to
undertake a variety of projects, both large and small to the highest quality. They work with a
multitude of materials from traditional timbers, veneers, laminates, HPL and leather. They are
also DuPont Corian certified fabricator. They manage other suppliers such as stone, glass from
their professional partners, in the specific fields. Their Professional packing line guarantees the
integrity of the product while ensuring on time delivery.
Products and Services by HB Furniture
Consultancy
The company offer an extensive Consultancy service, for which there is no charge, to
advise on every and any aspect of your office environment. They are experienced in meeting a
wide range of objectives from creating a complete ready-to-roll office from scratch, to resolving
a specific design, ergonomic, technical or budgetary need.
Space Planning
Enhance your offices with professional Space Planning. Furniture will only work if it is
effectively and efficiently planned within the space you have. Their dedicated design team will
create 2-D & 3-D plans to illustrate to you the best use of their space. Taking inspiration from
your needs and desires they will ensure that your new workplace provides a great place for your
employees and clients to work.
Procurement
At HB Furniture, their customers enjoy exceptionally competitive prices as they pass on
the benefits of highly attractive terms received as a result of our significant purchasing power
amongst leading suppliers.
Manufacturing
HB Furniture deploys a quality program that provides with a platform of designers and
suppliers to our Manufacturing Facility so that timely delivery and impeccable design can go
hand in hand. HB Furniture Production Centre is Equipped with the latest CNC systems and
technology and with a local traditional skill base, they have the flexibility to undertake a variety
of projects, both large and small to the highest quality. They work with a multitude of materials
from traditional timbers, veneers, laminates, Corian, HPL and leather.
Delivery & Installation
At HB Office, the Employees understand the importance of the smooth running of every project
from conception to completion. their factory trained team will ensure that you are supported
consistently and with easy communication channels. Their service is designed to offer their
clients, complete peace of mind. They frequently operate within a working office environment
with minimal disruption to the client. Their installers are trained to the high standards, and have
regular on-going training. They are equipped with the latest resources and are fully aware of
health and safety guidelines.
After Sales Service
All HB Product carry a 2-year replacement warrantee.
Brief Company TimeLine:
1964 Mr. Tahir Hasan Gardezi at the age of 23 years established HB Furniture AKA Hasan
Brothers, as a furniture manufacture facility, after completing his two years diploma in wood
working from Swedish Pakistan Institute, Karachi. At this stage, they worked on Kitchen
Furniture Only
1967 HB Furniture got the first major contract for Office furniture from Welcome
Pharmaceuticals, a multinational of United Kingdom
1968 HB Furniture won a major Office & Laboratory furniture contract from Sandoz
Pharmaceuticals.
1969 HB Furniture established its first Showroom for Kitchen Furniture & Office Furniture
in Karachi.
1972 HB Furniture established furniture manufacturing factory on 3500 sq. yards in Karachi.
1977 HB Furniture got a major contract for the Pakistan Steel Mills offices & residences
worth US$1.7 million.
1985 HB Furniture established their second showroom dedicated for office furniture in
Karachi.
1987 HB Furniture started using AutoCAD for design and drafting purpose.
1988 HB Furniture opened their third showroom for Kitchen furniture & Office furniture in
the city of Islamabad.
1989 HB Furniture got the contract for the distribution & Control Center from Water &
Power Development Authority (WAPDA).
1989 HB Furniture opened the forth showroom in Karachi dedicated for Office furniture.
1992 HB Furniture opened a new furniture factory at Islamabad & eventually closed the one
in Karachi.
1996 HB Furniture started an interior designing department in its firm where the consultation
was provided for the Office furnishing projects. The department had a interior designer & a
part time architect available
1999 HB Furniture established a 3 story Furniture showroom for at a very vital location in
Islamabad at I10/3
2006 Architectural Technologist, Ms. Hira Gardezi daughter of Mr. Tahir Hasan joined Hasan
Brothers as Interior designer, after completing her studies from Gulaph Humber University
Canada.
2008 HB Furniture re-launches a renovated showroom with distinctive outlook at its
Islamabad, I-10/3 location.
2012 HB Furniture acquired state of the art CNC Furniture Manufacturing Technology.
2016 HB Furniture adopted Employee Resourcing strategy and consider soft HRM.
Field of expertise
Office Furniture
Seating
Libraries Furniture
Laboratories Auditoriums
Contractual Kitchens
Accommodation Furniture
Public Area Furniture
Educational Furniture

No of Employees at HB Furniture, Before and After Strategic change.

Before 2016 In and After 2016
Managing Directors 3 1
Marketing Department 5 8
SCM Department 3 12
Design Department 1 3
Production Department 32 40
Finance Department 1 2
Site Installation Department 2 9
IT Department N/A 2
HR Department N/A 2
Total 44 79
 Chapter 2: Case Study

The case is about HB Furniture, who starts establishes its Furniture manufacturing company in
1964, from an initial level, sustains it business, start making profits, shifts its base from Karachi
to Islamabad; The company was having good profits, in start but later on: after the establishment
of Interwound in 1974, the market shares captured by the company starts decline; the reason of
decline in their sales was because the company was happy in getting a consistent smaller pie of
over-all share due to its high quality materials and high quality products; HB Furniture did not
realized that its competitive advantage of being High Quality supplier and manufacturer wont
last long until it strive to achieve strategic fit by matching its resource capability with the
changing need of the environment.
Time flew, and the company was getting a fixed pie of market share, and the CEO of the
company did not felt the need of adapting any change by implementing any plan: to match the
internalities with the externalities of the world; but its competitor on the other hand focused on
acquiring talented human resource, nourishing their skills and making competitive resourcing as
their edge against competitions; different Companies like Interwood Mobel, Ross wood
furniture, Boss plastic furniture, luxury homes and enviro kitchen and furniture etc. were HBs
Competitors; but due lack of realization of need the company did not moved a step towards
adapting change.
After, almost 50 years of HB Service, when the furniture industry of Pakistan has become
stronger along with other developing industries in Pakistan. Export of furniture during January-
July 2016 declined $3.90 million to $69 million compared to $93 million in same period last
year. Exports declined due to three-fold rise in cost of timber used for furniture export and
competition with foreign exporters (Recorder, 2016). The leading furniture making areas of
Pakistan were Chinois, Gujrat, Peshawar, Lahore and Karachi. In terms of exports, Karachi
comes first, followed by Lahore and Peshawar. Pakistans major buyers of wooden furniture are
the UK, the USA, Sri Lanka and Gulf countries like the UAE, Saudi Arabia, Oman and Kuwait.
The United States buys mostly bedroom furniture. UK and the Gulf countries import kitchen
furniture and office furniture.
After the furniture manufacturing Industrys development, its attraction and growing trends; in
addition, due to the development in infrastructure in Pakistan such as School, colleges, offices
etc. The demand for sales increased, and HB Furniture started receiving large number of orders:
Increasing its sales by 45% as compared to the last year i.e. 2015; The company with its limited
manpower, strived to meet the fluctuating demand; it meet the demand with cost of increasing
overtime of factory employees, in response to which the Employees started realizing its time to
go for brighter scope, being dis-satisfied from working 18-hours a day and getting no greater
benefits as the official members of the company were getting, although the profitability was
increased in relation to the sales Increase, but it lead to lack of employee commitment,
engagement; increasing in Turn over and absenteeism rate and other factors that had inverse
relation with prosperity of the company.
CEO of the company after, getting greater no. of Customer complaints, their dis-satisfaction in
service renders, provision of goods and service: not as per the requirements of the customer, due
to increasing no of reverse logistics and complaints; and Increasing turnover of Employees, and
absenteeism got obsessed with the Employees ineffectiveness and called the MDs of the
company for a meeting.
In the meeting the: CEO discussed the problems, and highlighted their major negative impact, to
the MDs and asked for their suggestions to what should be done to sustain the fluctuations and
survive the flooding demand of the company; all agreed that services of 3 rd party must be hired
i.e. HR Consultancy service should be hired; and the root cause of all the HR issues must be
addressed by them: sequel: efficiency in performance.
The Managing director arranged a meeting of HR Consultants with the CEO, meeting took place,
the problems as mention before, were highlighted and they agreed upon conducting organization
analysis by Interviewing the organizational performance: knowing their hygiene needs and
motivating factors; After conducting organizational analysis, the consultants came up with
numerous problems and suggestive fix that are to be implemented by the Company.
The Problems identified and suggestive fix suggested by the HR consultants were:
Problems
No proper organizational setup.
Work Environment is not good: without proper office setup; and has a passage way:
passerby may disturb the Employees in SC department and may lead to employees
dissatisfaction.
No employees gathering
No Check and Balance of duties employees perform.
Limited number of Employees: which makes the SCM suffer the workload.
Position in SC department are assigned with undefined job responsibilities.
Currently the SCM is performing the Responsibilities of SCAM, while the Assistant is
performing 2-3 tasks and the duties of SCM are not in practice which shall be ( Job
description of SCM, SCAM are drawn).
Job rotation in store dept. and turnover of employee.
No employee-Employer contract, which may give the employees an option: to leave the
Job any time they want.
The Employees Qualification does not meet the job specifications (as far as the standard
JD and JS are concerned).
The materials and parts, which are kept in store are messed up (No proper placement)
No standardization and codification of materials or parts in the store, because of which
doubling occurs.
Documentation of in/Out of materials or parts are bookish: waste of time.
Ex-store keeper has not documented the in/out of materials or parts for two months (as
mentioned by the store keeper Ibtihaj).
 No employee orientation.
Lack of corporate cultural elements
Job turn over in the assembling department.
There is only one site supervisor, creates a bottle neck: incase, any installation required at
any site by the time, when Site supervisor is not available.
Number of employees is random in production, jobs are rotated frequently, and the
employee record that should be kept by the FM was bot discrete.
No proper codification of the orders that are being processed; leads to overlapping.
Quality check of the inward shipment are satisfactory.
After the factory order; Factory Manager (FM) develop the dimensions and size of the
parts in book: time consuming; can be more efficient if replaced by computerized
techniques.
Orders are mostly customized because of which; every time FM has to enlist the size and
dimensions of the orders.
Due to no standard product, the product plans developed by the operator are time costly.
No cost effectiveness.
o Time consuming
o Powder coating, Glasses are order from outside: which leads to greater cost
incurrence; and can be carried and stocked inside the company, leads to cost
minimization.
When there is a mass production, the parts of the products may increase the exact no of
parts required: although rare, but leads to cost ineffectiveness.
No aluminum usage report
FM has no relation with the marketing staff: which should be, to make sure the cost of
production and budgeting analysis are effective.
There is less workers health and physical safety measures.
Power distance is low: the employees at managerial position must have a privacy
insurance.
Resource allocation is not at optimized level.
Factory manager does not carry out budgeting analysis, General Manager does, which is
by standard: the duty of a factory manager.
Job turn over in every department.
There exist no delivery challan or customer satisfaction report.
Lack of interaction with departments
HRs concerns are lacking i.e. no employee card, no employee satisfaction, no employee
safety measurements, no contractual employee, and no trust of employer on employees.
Employees are paid good salaries, but just the salary is not what should be considered
fulfilled, it does not lead to employees motivation, retention and their engagement.
There is no proper relation of logistic with the site installation.
Arrangement of transport by the logistic department is not at-home, which creates a bottle
neck situation.
Timely delivery is a main value that must be implemented in the organization.
 Order delivery are in installments, which leads to time consumption
F.M does not check if the deliverables are ready to be dispatched.
Lifter does not work at all.
Sizes and dimension drawn by the factory manager, sometime are false, which leads to
extra consumption of sheets or materials: doubling. (confidential information)
Resources are scattered in informal manner. Leads to space issues.
Solutions
The materials and parts should be standardized, characterized, and codified: to make sure
the prevention of doubling.
Store keeper, must have knowledge of parts and materials.
The Assistant supply chain manager, ensuring the Quality and Quantity check of
shipment, must be experienced and skilled in Quality checks.
Book keeping records should be replaced by computerized techniques: Efficient.
Inventory management software must be installed in the company, accessible by SCM,
SCAM, Store keeper and Factory manager at the same time: prevent doubling.
There should be a formal organization setup in SC department: there should be at least a
SCM, SCAM, an Assistant, a Store keeper; a Logistic manager etc.
Work environment of SC department should have a formal physical setup, where
employees love to perform, which raise their motivational level.
There should be certain events, ceremonies: where employees get together and know
each other, build relationship.
An HR department should be established, to make sure there is proper recruitment and
selection process, defined duties and responsibilities assigned, performance appraisal,
compensation management, training & development of employees.
Employees should be contractual to make sure: there is lesser or no turn over.
Fresh employees must be given a short and long term orientation.
Strong corporate culture should be embedded in the company.

The Job turn over should be stopped or made slow. By contracting the employees:
ensures the consistency of the organizational performance.
There should more than on site supervisor (Installation), to make sure the bottle neck
situation is overcome.
Jobs should be rotated but after a term, and there should be an extra employee at each
operational site to ensure backing the lags.
The FM should ensure the discrete no of employees.
The orders being processed must have a proper code or tag, to make sure the overlapping
of multiple orders: does not occur.
There must be a professional employee that can ensure the Quality of inward shipments
or material parts, since we observed the powder coated material were backed, because of
their roughness.
Manager should carry out supervisory activities rather than drawing parts dimension and
sizes, which is time consuming; they should either be replaced by the computerized
techniques or should have standard dimension and sizes: pre-available against any order.
 The CAD operator must also draw CNC rooting plans on CAM rather than FM.
The CAD/CAM operator must have a position at the design department to ensure the
operator is supervised by the designing team leader.
Powder coating operational setup must be installed within the company, ensuring the
minimization of cost.
(Optional: Rather than creating a FERMA for glasses, the company can stock glasses in
its store, creates a glass cutting operational setup: leads to cost effectiveness.)
Foreman at production site should ensure the manufacturing of discrete no of parts
required, ensuring the optimum resource utilization.
The company should install a software to make sure: the orders cutting plans are
combined and the cut-pieces are minimized: resource optimization.
The companys integrated corporate culture should be strong, to make sure the power
distances are visible and the privacy of a managers, director or general manager are
ensured,
FM should arrange meetings with the Foreman and supervisors that are working under
the FM, and carry out productions SWOT analysis: lead to budgeting and cost
effectiveness of the production operations.
Employees should be on contract bases. And apart from salary, employees other
concerns should also be considered to make sure they are motivated.
HR policies and tactics must be implemented.
There should be a proper check and balance on the managerial level staff to make sure,
there is lack of resources.
A definite number of sheets and materials should be dispatched to production sector, to
make sure the prevention of extra consumption of sheets and resources.
The order delivery date should be decided after collaborating with the Factory production
and control center, make sure there is no bottle neck situation.
Order should be delivered in time completely, rather than on installments.
Logistic department should arrange transportation in time or company should have its
own transportation i.e. one truck for shipments.

The HR consultants, realized that company need to go for a strategic change by planning,
Implementing and controlling People resourcing strategy
 Chapter no 3: Application of people Resourcing Strategy

Employee Value Proposition/ HR planning Approach

1. Business Plan was defined....
2. Activity levels were forecasted: By defining The Process Flow
HB Furniture has developed a process flow, which is lacking but initiative has been taken to
automate and integrate the complete process. So, in this report we shall discuss the process flow
of HB Furniture along with the proposed strategic plans being implemented.

Phase 1 Marketing
Customer Attraction and communication for requirement
Development of Design proposal
Determination of BOQ, Pricing/payment requirement, delivery schedule
Customer approval of proposal
Final Order- Go green Signal
Database management (Background process)

Customer Attraction and communication for requirement

Within Phase 1 of HB Furnitures Process flow, it can be observed in the figure above
Shown that: Customer attraction and communication of requirement i.e. goods and services is
incurred, In the very first step of Phase 1: Marketing Personnel either reach customer, or
customer reaches the company and specify its requirement, it is where the need for the goods and
services arises; The Marketing staff provide available options for goods and services, while
customer agrees in acquiring the desired goods and services.
Development of Design proposal
In the second step of Phase 1, the marketing department forwards the clients requirement
to the design department, on the basis of which functionality and layout plans are developed.
These developed plan serves the supply chain, production department and customer.
Determination of BOQ, Pricing/payment requirement, delivery
schedule
In third step of phase 1, the Plan developed is forwarded to the Supply chain department,
along with the bill of quantities, customer requires; the supply chain department based on the
available data for requirement checks the production facility, available inventory, status of other
orders being processed and respond back to the Marketing department along with order
processing time and delivery schedules. While the marketing department compiles the feedback
from both the design and Supply chain department and develop a proposal that is yet to be
approved.
Customer approval and Go Green Signal
In the fourth step of phase 1, the marketing personal communicate the proposal (which
includes BOQ, Payment options, delivery schedule) to the customer; after the customer approves
the proposal and order is finalized, marketing department send the order to the Supply chain
department. Supply chain in response to the Green signal, Initiate phase 2.
Background Process
It should be noted that, the background process are companys supposition that are to be
implemented. According to the supposed initiatives, the Design proposal can archives the plan
from database already stored; while Supply chain archives the Information from the database that
is updated each day by every personnel from every aspect of the process flow. The database can
been observed in the figure, is then managed by the IT department. The data Input from the
production department can also be seen which help the supply chain department to consolidate
the overall process and orders being processed. The Initiative taken by HB Furniture help
integrate the Logistic components, functions and its activities performed in adding values to the
customer.

Phase 2 Supply Chain

Phase two of the Process flow, revolves around the Supply chain department, in here: the
Logistical process of sourcing, material flow from supplier to the production, and material
dispatch from the Store to the production can be observed. We can observe that HB Furniture, is
involved in the movement of material from the point of origin to the point of initial consumption.
A figure shown visualize the logistical process of material flow from suppliers to the production
facility. In addition below are the step involved in Phase 2. Which are elaborated in distinct.
In House Store check and Outsourcing (Links to Phase 4)
Material tagging
Material Dispatch
Database management (Background process)
In House Store check and Outsourcing
After the Supply chain department receive the final order from the marketing department,
SCM pick the order when production department has the capacity to manufacture the goods;
following sub-steps are taken by the SC department in the first step of Phase 2:
SC department check the In-house store for raw material availability against the order
being picked, if the raw material is available SC department move the material to the
production department after tagging the material against the order number and there is no
need of other steps in phase 2.
In case, in house store does not have the raw material or any factory supplies used in
manufacturing process or the Customer requires a product which is not manufactured by
the company and is either imported or purchased locally, then the SC department procure
the concerned components or part or factory supplies. Although procurement process
involves various steps and are associated with the PPRA rules and regulation, but the
Company has list of Qualified Supplier (among which HB Furniture is the companys
backward integrated business unit, and is the largest supplier of HB Furniture) and the
company purchases the commodities from the supplier with the lowest bid directly. There
exists no tender floating, bids evaluation and other necessities. HB Furniture sometime,
request for quotation from the already qualified suppliers and contract with any which
provides the greater quality at lower prices.
After a contract is made with a supplier, the SC department communicates the Finance
department, and if there is availability of funds then SC department develops a purchase
order which is then authorized by signatory and is mailed to the supplier.
The Supplier after the receipt of the Purchase order supply the goods and service required
by the company through 3rd party inward logistic.
The company receive the Goods and services, performs initial check and develop a GRN,
which is then communicated to the Finance department by the SC department head.
The Finance department, on the basis of GRN, and upon the authorization of General
Manager pay the supplier. Mostly, the SC department pay the suppliers after the goods
are received.
The Goods received are stored in the in-house store, and the second step of phase 2
initiates.
Material tagging
After the Goods are outsourced and stored in the in-house store, the material against the
order are tagged and compiled for dispatch. These material tagging helps help determine the
inventory level consumed and the stock left. After the materials are tagged the 3rd step is
initiated.
Material Dispatch
In the third step of Phase 2, the tagged materials are dispatched to the production
department for manufacturing purposes; the material dispatched are recorded on an excel sheet to
manage the inventory. Currently, manual inventory management is being processed which: shall
be replaced by IM software soon.
Database management
In Background, the company has supposed to update the database after the material are
dispatched from the Store and the Production department is supposed to update the database after
the receipt of Materials. The Inventory management shall be held useful in monitoring the
material flow from SC department to the Production department.

Phase 3 Production
After the Dispatch of material from SC to the production department, third phase of
process flow initiates which revolves around production department, it involves the movement
and transformation of material by adding value for the customer. Material handling Equipment
are used in the movement in both phase 2 and phase 3.
Cut and Boring plan generation
Order Production
Maintenance and control
Database management (Background process)

Phase 3 involves the following steps:

Cut and Boring plan generation
Based on the Functionality and lay out plan by the design department the production and
planning center generates cutting and boring Plans, which are includes coordinates, these
coordinates are then feed to the automated technological machineries and cutting or boring
process are initiated.

Order Production
After the plan generation, the production department under the supervision of various
supervisors and with the help of different technical employees, carpenters and helper process the
production which involves cutting edging, boring, assembling; fabric, ancillary and polishing
works; after which raw materials are transformed into value added products. The finished
product is then sent to the warehouse i.e. logistical aspect of the process flow. The maintenance
supervisor within the production department is responsible for the maintenance and control of
the Machinery, equipment and Work in Progress during Order process.
Background Process
The production status of different orders are updated on daily basis by updating database.
Updating database will help update information flow, which can be used by other departments
specially supply chain to carry out other logistic process.

Phase 4 Supply Chain, Site Installation

The fourth phase of the Companys Process flow revolves around the Supply chain
department and covers different logistical aspect of logistical process.
Order Assembly: of finished product and outsourced Build-up parts
Quality and Quantity Check
Packing
Outward shipments (logistics)
Site Installation
Database management (Background process)
Order Assembly: of finished product and outsourced Build-up parts
In the first step of phase 4, the Supply Chain processes the Order Assembly: In which the
outsourced Products I.e. Imports or local purchases; and the finished goods from the production
department are assembled into a single order in the warehouse, and are stored there. The
Assembled order is not stored for a greater period, after assembly it is then process through the
second step of phase 4 i.e. Q.C and Q.C
Quality and Quantity Check
The assembled orders are then checked under the supervision of Quality control and are
finalized by signing the QC checklist. The Quality and Quantity of assembled order are check
and is if reversed if there exist any damaged part or requires final finishing, while after the QC is
done it is then processed through third step of the phase 4 i.e. Packing

Packing
After the QC of assembled order, the packing supervisor within the SC department
initiate the packing process. The packing of furniture is very simple; the company uses Kraft
paper, stretch roll and packing tap. The Packing team pack each unit of the product separately by
tagging HB FURNITURE on each and QC checklist is attached after packed. The Company
being cost conscious used packing equipment that incurs lower cost.
Outward shipments
After the Order is checked, Packed and tagged; the QC and Packing supervisor inform
the Logistic Executive to arrange for the 3rd party Logistic. After contracting a third party
Logistics, the packed products are loaded to the Transporting vehicle and is transported to the
final Destination.
Site Installation
The last step involved in Phase 4, is the Site Installation. The Site Installation team visits
the final Destination and install the furniture as per the layout plan designed by the design
department. Site Installation department communicates with the SC department,
Finance/Accounts and the Marketing department to make sure a significant quality is delivered
to the customer. The marketing department deals with the site installation department to update
the customer database (Proposition), while currently they are manually following up the
customer about their site Installation status.
Background Process
HB Furniture, has taken initiatives to create CRM database and Shipment tracking
database to better facilitate customer through Quality Customer services.
3. Analysis of Requirements, numbers, skills and behaviors
The HR Consultants, after reviewing the process flow of HB Furniture and forested the
activity levels of companys operation: comes up a centralized organizational Structure: which
determines the type and number of people required by the company to meet the changing
fluctuation in demand. In addition, the company, as suggested by HR Consultants proposed
organizational structure, must be establishing Both human resource and IT departments in the
company. The Organization structure is shown as follow:
 The Department Relationship as suggested by the HR Consultants were:

Based on the level of activities, Analysis of requirement, no, skill and behaviors; the
consultants drawn the JDs and JS against each position (Exhibit 1.1)
Demand Forecasting
Demand Forecasting was done by Sales ratio, Trend analysis was not applicable: Since,
no previous record of Employees existed, because of Lack of HR department New HR
department was proposed to be established, along with IT department.
Supply Forecasting
In reference-to both Internal and external analysis the company may intend to go for
expansion and try to sustain its Competitive advantage (HR). so, Acquisition of talent would be a
necessary strategy, and more no of employees shall be required.
Action Planning
Considering the Before mentioned adoptions and rationale, the company went for:
Recruitment
Training
Increasing Flexibility

Resourcing Strategy
Internal Resourcing -- Internal Resourcing was not possible: since, there existed no
previous data regarding Employees nor talent were acquired....
External Resourcing -- The company, as suggested by the consultants developed a
recruitment plan and made the company: the employer of choice" by
 o defining competencies and skill requirement
o sourced the factors that affect the decision of employees
o made "higher pay: their competitive resourcing step
o Recruited and selected employees by:
Skill Analysis
bio-data
Structured Interview
psychometric testing etc.
Note: A case of Recruitment Executive as shown in animated video (ensuring application of
recruitment strategy)

Retention Strategy
In response to " lack of commitment" and dissatisfaction of employees the company:
Provided higher pay than its competitors
Provided opportunities to rewards, learning and Development
Defined SOP and KPIs; appraised the performance through proper PMS
Nourished Employees Confidence, competence and enhanced their skills
Reduced turn over through career development and motivating them
Increased commitment by defining smart objective and rewarding strategy
Developed proper communication channels
Encouraged team work and group discussion
Empowering people
Making employee realize that they are company's valuable assets

Flexibility Strategy
To cope up with punctuality and Absenteeism issues, the company deployed flexible work hours,
roles and encouraged multi-tasking.

Talent Management Strategy

Talent of Employees was acquired by
On-boarding of Employees
o The Company, at a minimum, created a consistent onboarding process that
included: clarification of expectations (which were likely included in the
recruiting and selection phase), introductions to key relationships, and access to
all the resources and tools that newly hired employees need to feel supported and
prepared.
Employee development
o Manager/Team leader, based on their altitude skills were designated the task of
coaching and nourishing the skills of employees.
Performance management
 o An efficient performance management system was adopted by the company, as
suggested by the HR consultants, by assigning SMART Objectives, defining
SOPs and KPIs, and managing the appraisal of each Employees against their key
performance indicators.
career Development and Succession Planning was also performed to make sure the
Talented pool is generated.

Results
Employee Satisfaction
Employee Engagement
Employee Commitment
Performance Improvement
Talented pool Generated
HR become company's competitive advantage
strategic fit achieved
Improved Customer Service
Internal Supply of labor increased
Employees were Empowered
Absenteeism and Turnover decreased
The company is now enjoying a competitive advantage by matching the internalities of
HR Resources with the Externalities of the Environment.