Rongpur Foundary Limited

Contents:
• Acknowledgement

• Executive Summary

• Organization overview

• Background of the company

• How it all began!!

• Where it all began!!

• Industry - emerging globally

• Products of RFL

• Uses of MRP method

• Introducing new strategy of RFL

• Price of the products

• Product differentiation
 • Style and design

• Manufacturing process of RFL plastic

• Reasons of using plastic chair

• Types of plastic chair

• Conclusion

Acknowledgement
Our endeavor will come true if the actual purpose of this assignment becomes fulfilled. At the
very first we would like to express our cordial and deep respect to our course supervisor,
Ms.Manna Akter Lina, Lecturer of Dhaka City College,Dhaka for her proper guidance, valuable
advice, instructions which helped us a lot to complete this assignment. We are very lucky for
getting this opportunity to complete our assignment under her guidance and supervision. We
would also like to express our heartiest gratitude to the supervisor of RFL in Bangladesh, for
giving us the opportunity to complete our assignment in their company. It was impossible to
make this report without his help and co-operation. They always provided us the required
materials and helped us to clarify the company activities. This report gave us practical
knowledge about manufacturing process and activities. Finally, We would like to thank all
officials of RFL(Good Luck), for their co-operation, support and love. This is really a wonderful
work experience with a wonderful working environment. We do not ever forget this company

Executive Summary
To transform the theoretical knowledge of Business Administration in to a practical knowledge,
the assignmentt writing programme is a must. These assignment writing period help us a lot to
realize the connection between our institutional knowledge and actual corporate scenario. Today,
the people of Bangladesh are quite concerned about their present and future protection for
various purposes. They are concerned about their educational protection and so on.So for these
people pen is a must essential things.Good Luck is such a multi manufacturing company which is
playing a vital role in this sector in Bangladesh. Their all products are covering a broad demand
of our people. Their manufacturing process is very well organized and effective.They have many
experienced people for doing and controlling their manufactural tasks.Through doing this
assignment, we also get too many information about manufacturing a product like ballpoint
pens.Which information,I believe help us through many ways in future.

Organization Overview

Background of the company:

RFL Plastics, a subsidiary of RFL Industries, is one of the largest manufacturers of indoor and
outdoor plastic products for domestic and export markets. It has become a benchmark for
competitors on the lines of quality by manufacturing premium quality products to give clients
excellent services and true value for money. The unmatched products have given a big name to
the domestic market to such an extent that the name is accepted with trust, quality and assurance
in all over Bangladesh. This was only possible due to the company being professionally managed
and promoted by people who ensure that creativity and talent is given full freedom to blossom
and nurture in the organization. It was due to this managerial community that the new era of RFL
plastics in on the way. “RFL Best Buy Outlet” is indeed the future of RFL plastics. It does not
only eliminate intermediaries but also allows more managerial control over its product. The
success of such a strategy is currently witnessed and being optimistic about its future would not
be a bad idea.

How it all began!!

RFL started its journey with Cast Iron (CI) products in 1980. The initial main objective was to
ensure pure drinking water and affordable irrigation instruments for improved rural life. Today
the company has its wide ranges of CI products like pumps, tube wells, bearings, gas stoves etc.
and has achieved the prestige as the largest cast iron foundry and light engineering workshop in
Bangladesh. With a vision to serve the common people of Bangladesh with quality necessity
products, RFL diversified its operation into PVC category in 1996 & in Plastic Sector in 2003.At
present it is market leader in all these three sectors-Cast Iron, PVC & Plastic in the country.
Sizeable amount is also exported to different countries.

RFL Plastics Limited commenced its operation in 2003. The vision of the company is to make
molded household products and furniture made of plastics of decorative design at an affordable
price. The company's product ranges include household items like table ware, kitchen ware,
cleaning accessories, storage containers, multipurpose ware, baby ware, hangers and furniture
items like Arm Chair, Armless Chair, Table, Stool etc. Due to its perceived superior quality,
innovative design and varying ranges, RFL has already been established as most preferred brand
in plastic category in Bangladesh. With the expansion of its product line and capacity, the RFL
products are now being exported in various countries around the globe. Through vigorous
selection and evaluation process, best quality food grade plastics are used as raw materials for
manufacturing. The factory is located at Ghorashal, Narshingdhi and is equipped with 70 plus
injection molding machine. Around 3000 workers under the supervision of more than 100
technical experts put their effort to give the shape of the consumer demands. Each process line of
manufacturing goes through stringent quality control process and checked against slightest of
nonconformance. The company has its own R&D laboratory which explores about product and
design innovations that can meet both expressed and unexpressed consumer demand (RFL
Group, 2012).

Where it all began!!

RFL has a unique production facility comprising of different machinery and segmented
production line for each of its product. Production facility is greatly secured from occupational
health and hazard issue, theft issue and environmental issue. RFL’s 600,000 square feet (55,700
square meters) modern plastic manufacturing facility is located 30 miles (50 km) east of Dhaka
(capital of Bangladesh) and went into production in 2003. The factory is fully equipped with
state of the art injection molding, vacuum forming and blow molding machines with a
conversion capacity of over 3,300 tons (3,000 MT) of resin per month. RFL currently utilizes
500 production molds and an in-house mold repair shop.

The facilities are well equipped with China, Taiwanese and Thai Technology to produce high
quality flexible plastic products such as Hanger & Garments Accessories (Moving Shirt Hanger,
wall Hanger), Food Storage Products (Food Storage Box), Household Utilities (Mug, Super
Bucket), Washroom Accessories (Square Soap Case), Beverage Products (Glass Stand, Design
Glass), Utility & Cleaning Products (Laundry Basket), Furniture (Arm Chair, Table, Stool) etc.
Covering the wide range of packaging, pouches, tubes, garment and films of HDPE (High
Density Polyethylene), LDPE (Low Density Polyethylene), PP (Polypropylene), LLDPE (Linear
Low Density Polyethylene) and their mixes based packing materials round the clock and satisfies
almost all sort of the industry. It can produce up to 8 (Eight) colors and deliver its products
within a very short span of time with a total installed production capacity of 3,000 MT per
annum. The capacity utilization of the industry is over 95%.The industry has the started with an
installed capacity to produce 3,300 tons of plastic flexible of different sizes, colors and thickness
and now increasing their capacity to meet the growing demand (RFL Group, 2012).

Industry - emerging globally

Bangladesh could emerge as a global player in plastic industry by hiking its turnover to $2
billion by 2015 and $4 billion by 2020 as cited by a case study on Bangladesh's plastic sector
conducted by the Economic and Social Commission for Asia and the Pacific (ESCAP) of the
United Nations. Plastic is an engineered material used to manufacture a wide variety of products
to meet the domestic demand of Bangladesh and export the remaining to other countries (Singh,
2012).

The plastic industry has emerged as an important industrial sector in the country during the last
two decades. At present there are 3000 plastic manufacturing units, 98% of which belong to the
Small-Medium Enterprises (SMEs). Domestic market size is Tk. 7,000 crore. Per capita
consumption of plastics in Bangladesh is 5 kg per year. The plastic sector constitutes 1.0 of GDP
and provides employment for half a million people. Total export earnings for both direct and
deem (RMG accessories) exports are about US $ 337 million. An in-depth study of the plastic
sector reveals multi-dimensional constraints and an excellent prospect for future growth. Major
constraint in the plastic sector is the lack of an institutional arrangement dedicated to this sector,
in order to provide supporting services such as skilled manpower, testing facilities for quality
control, innovative technology and consultancy services. The availability of cheap labor and the
fast developing plastic wastes recycling industry due to rising cost of petroleum (raw material of
polymers) provide Bangladesh potential advantage of competitiveness in the global market. An
expert (BUET, BCSIR, BITAC, BPGMEA) consultation meeting held on the plastic sector
organized by the SME Foundation in 2008, has recommended setting up Bangladesh Institute of
Plastic Engineering and Technology (BIPET). Aims and activities of this institute are given in
this paper. This proposal is in the light of Indian experience. The entrepreneurs in the plastic
sector have developed the plastic industries with their own initiative and finance. Now,
considering huge potential of this sector and the multi-dimensional nature of the constraints, the
government must provide supportive policy and institutional arrangements (Singh, 2012).

Products of RFL
The industry is well equipped with China, Taiwanese and Thai Technology to produce high
quality flexible plastic products such as Hanger & Garments Accessories (Moving Shirt Hanger,
wall Hanger), Food Storage Products (Food Storage Box), Household Utilities (Mug, Super
Bucket), Washroom Accessories (Square Soap Case), Beverage Products (Glass Stand, Design
Glass), Utility & Cleaning Products (Laundry Basket),

Furniture (Arm Chair, Table, Stool) etc. covering the wide range of packaging, pouches, tubes,
garment and films of HDPE (High Density Polyethylene), LDPE (Low Density Polyethylene),
PP (Polypropylene), LLDPE (Linear Low Density Polyethylene) and their mixes based packing
materials round the clock and satisfies almost all sort of the industry. It can produce up to 8
(Eight) colors and deliver its products within a very short span of time with a total installed
production capacity of 3,000 MT per annum. The capacity utilization of the industry is over
95%.The industry has the started with an installed capacity to produce 3,300 tons of plastic
flexible of different sizes, colors and thickness and now increasing their capacity to meet the
growing demand

Uses of MRP Method

To fulfill the market demands the company uses MRP. In accordance with MRP, in the first
action of the company is to forecast, production plan and taking orders for the product. Product
forecasts are needed for each company to plan the future budget for the product, then the
production plan and takes orders from customers. All three of these things combined made the
master schedule of the company; the company has to look at their MRP so that they prepare
master production schedule to meet demand. Before making the companies order the release to
check the status of inventory to know about their current position in the in the inventory. After
make the order the Company has to verify CRP (capacity planning requirements). If there source
is available, the company makes a purchase order, and work orders. When the material reaches
the company, they store some of the raw materials and other parts directly load and scheduling
production to produce the final product.
Introducing new strategy
In year 2012, RFL plastic witnessed several ups and down in the financial segment of the
business. Study showed that such inconsistency aroused due to intermediaries failing to meet up
with the target sales. Even though the market had ever booming demand, sales figures were not
increasing to the potential level. Market research showed that such inconsistency did exist due to
the competitors, who in some cases shared the same channel of intermediaries to segment its
product. Hence, relying on the intermediaries was not suitable for RFL to meet up to its potential
sales figure.

Such a dilemma led to development of new strategy by the management to resolve such issues.
Hence, RLF best buy outlets were introduced in late 2012 through opening Mirpur, Khilgaon and
other branches. At the moment, they have 23 best buy retail outlets in all over Bangladesh. As
time goes by, they look forward to opening more in different target segments of Bangladesh.

Prices of the commodity

If demand is elastic, the firm should not fix high prices rather it should fix lower prices than that
of the competitors. Product’s Stage in the Life Cycle of the Product: Mittel hammer and Cardell
(1997) claimed that pricing decision is affected by the stage of product in its life-cycle. In the
introductory stage of the product, it is the price strategy which determines the price of the
product.

Product Differentiation: The price of the product also depends upon the characteristics of the
product. In order to attract the customers different characteristics are added to the product such
as quantity, size, color, alternative uses, etc. Buying Patterns of the Consumers: If the purchase
frequency of the product is higher, lower prices should be fixed to have a low profit margin.

Polly balls Category:

HDPE is defined by a density of greater or equal to 0.941 g/cm
1. HDPE has a low degree of branching and thus stronger intermolecular forces and tensile
strength. HDPE is used in products and packaging such as milk jugs, detergent bottles, margarine
tubs, garbage containers and water pipes. One third of all toys are manufactured from HDPE

LDPE is defined by a density range of 0.910 – 0.940 g/cm

2. LDPE has a high degree of short and long chain branching. LDPE is used for both rigid
containers and plastic film applications such as plastic bags and film wrap.

LLDPE is defined by a density range of 0.915 – 0.925 g/cm

3. LLDPE is a substantially linear polymer with significant numbers of short branches. It has
Lower thickness compared to LDPE. Agricultural films, saran wrap, and bubble wrap, to
multilayer and composite films

Style & Design:

RFL Plastic Ltd. is expert in making different dices for different items. The company gets those
designs from its buyers, suppliers according to their specifications and they have strong R&D
laboratory, which explores about product and design innovations to meet peoples demand. They
have 70 plus injection molding machine to produce those product. These includes such as Arm
Chair, Armless Chair, Table, Stool and so on.

Machines:

RFL Plastic limited use art injection molding, vacuum forming and blow molding machines for
their Production.

Operations of Order Processing System:

In the case of plastic manufacturer company, there are various stages to complete the entire order
processing system. In general, the entire operation can be summarized that there are five distinct
steps, such as design, mixing, boiling, packing and packaging. The organization hired an expert
to create a dice design on the customer’s choice.

Then varying density polyethylene based balls and colors are mixed together and ready for
boiling. After completion of the boil, print jobs are run as a sample design allows clients. After
printing, packaging materials workers are ready for shipment.

Disintermediation- The new era of RFL plastic

In economics, disintermediation is the removal of intermediaries in a supply chain, or "cutting
out the middleman". Instead of going through traditional distribution channels, which had some
type of intermediate (such as a distributor, wholesaler, broker, or agent); companies may now
deal with every customer directly. Disintermediation initiated by consumers is often the result of
high market transparency, in that buyers are aware of supply prices direct from the manufacturer.
Buyers bypass the middlemen (wholesalers and retailers) to buy directly from the manufacturer,
and pay less. Buyers can alternatively elect to purchase from wholesalers. Often, a business-to-
consumer electronic commerce (B2C) company functions as the bridge between buyer and
manufacturer.

TOTAL CONCERNS OF PRAN-RFL GROUP

RFL is one of the rising market giant of Bangladesh. After founding in 1981, RFL Group is
increasing their business rapidly. Now they are one of the largest conglomerate merger
companies. RFL Group has a total number of 25 concerns.

Concerns of RFL:
• PBCL

• Plastics

• METAL-1

• METAL-2

• Hanger

• Re-Cycle

• RCL

• TANK

• Bag

• And 16 more…

TOTAL EMPLOYEE OF RFL GROUP

RFL Group puts a lot of importance on their employees. They always try to recruit efficient,
dedicated, creative and hardworking employees for their organization. Equal opportunity is given
in both male and female workers. Their recruitment structure is very developed and fair, so that
they could build a strong team of employees. After the recruitment RFL provides them proper
training to develop working skills, good salary, commission on the profit, reward among the best
employees and many more. They consider the employees as asset. From one example about their
responsibility is; they always try to give salary before 29th day of the month, so that the
employees don’t have to suffer from any kind of financial problem. There are a huge amount of
employees in RFL group. The number of employee details is given below:

General workers – 28,000

Overall workers – 40,000

Current workers – 28,000

Factory workers – 20,000

Sales workers – 8,000

Corporate employees – 2000

In the other side in management pyramid:

Top level management – 2,000

Employees including the CEO

Major General (rtd.) Amjad Khan Chowdhury.

Middle level management – 8,000 employees

Supervisory and worker level – 30,000 workers

RFL plastic chair

RFL plastic chair manufacturing process
Product Description: Plastic chairs are chairs made of plastics and used for seating in different
places and occasions. They are used in public places such as restaurants, coffee shops, libraries,
schools, etc. Plastic chairs are replacing chairs and seats made from wood, plywood and metals,
the chairs have some unique properties which made them “better” choices to consumers. They
are light in weight, less expensive than other types of chairs, more comfortable than ordinary
wooden chairs, etc. Plastic molded chairs are of two types: plastic molded base with steel frame
and a complete plastic molded chair.

Source of Raw Material: The main raw materials are plastic granules such as polypropylene (PP)
and a crylonitile butadiene styrene (ABS) resins. If the chairs have to use steel for legs or frames,
steel pipes will be also needed. The plastic materials will be imported while the steel pipes can
be purchased locally.

Types of RFL Chair

• King Chair (Net Flower )

• King Chair (Majesty )

• Golden Chair (Nakshi)

• Golden Chair (Net Flower )

• Relax Chair

• Arm Chair

• Arm Chair (Net Flower )

• Arm Chair (Pati)

• Royal Chair

• Easy Chair

• Dining Chair

• Dining Chair (deluxe)

• Dining Chair (Tree)

• Dining Chair(Spiral)
 • Slim Chair

• Queen Chair

• Folding Chair

• Meeting Chair

• Classic Chair

• And more …..

Process and Technology:

• Polyethylene terephthalate is our raw material to produce plastic chair. It is also called
as Pet has high mechanical strength.When we consider the product of chair strength is
important so Pet is our raw material to produce plastic chair.

• Pet is resistant against solvents. Therefore Products of Pet can be easily cleaned by using
solvent. Pet has good corrosion of thermal radiation. If we placed in direct sunlight they
can with stand there for a very long time (five years approximately).

• Polyethylene terephthalate is our raw material to produce plastic chair. It is also called as
PET which the name of pet bottles comes from there. This material is thermoplastic
which means that we can recycle it easily.

Manufacturing Process of Plastic Chair

• Injection molding :
Injection molding is a manufacturing process for producing parts by injecting material
into a mold. Injection molding can be performed with a host of materials, including
metals, glasses, elastomers, confections, and most commonly thermoplastic and
thermosetting polymers. Material for the part is fed into a heated barrel, mixed, and
forced into a mold cavity where it cools and hardens to the configuration of the cavity.
 After a product is designed, usually by an industrial designer or an engineer, molds are
made by a mold maker (or toolmaker) from metal, usually either steel or aluminum, and
precision-machined to form the features of the desired part. Injection molding is widely
used for manufacturing a variety of parts, from the smallest components to entire body
panels of cars. Parts to be injection molded must be very carefully designed to facilitate
the molding process; the material used for the part, the desired shape and features of the
part, the material of the mold, and the properties of the molding machine must all be
taken into account. The versatility of injection molding is facilitated by this breadth of
design considerations and possibilities.

• The first screw injection machine, which allowed much more precise control over the
speed of injection and the quality of articles produced. This machine also allowed
material to be mixed before injection, so that colored or recycled plastic could be added
to virgin material and mixed thoroughly before being injected. This greatly improved
design flexibility as well as the strength and finish of manufactured parts while reducing
production time, cost, weight and waste. The plastic injection molding industry has
evolved over the years from producing combs and buttons to producing a vast array of
products for many industries including automotive, medical, and aerospace, consumer
products, toys, plumbing packaging, and construction.

• Moulding Mold or die:

Moulding Mold or die are the common terms used to describe the tool used to produce
plastic parts in molding. Since molds have been expensive to manufacture, they were
usually only used in mass production where thousands of parts were being produced.
Typical molds are constructed from hardened steel, pre-hardened steel, aluminum, and/or
beryllium-copper alloy. The choice of material to build a mold from is primarily one of
economics; in general, steel molds cost more to construct, but their longer lifespan will
offset the higher initial cost over a higher number of parts made before wearing out. The
standard method of cooling is passing a coolant (usually water) through a series of holes
drilled through the mold plates and connected by hoses to form a continuous pathway.

Final assembly, packaging, and shipping

The coolant absorbs heat from the mold (which has absorbed heat from the hot plastic)
and keeps the mold at a proper temperature to solidify the plastic at the most efficient
rate. Aluminum molds can cost substantially less, and when designed and machined with
 modern computerized equipment can be economical for molding tens or even hundreds of
thousands of parts. Beryllium copper is used in areas of the mold that require fast heat
removal or areas that see the most shear heat generated. The molds can be manufactured
either by CNC machining or by using electrical discharge machining processes.

Operations of Order Processing System:

In the case of plastic manufacturer company, there are various stages to complete the entire orderprocessing
system. In general, the entire operation can be summarized that there are five distinctsteps, such as design,
mixing, boiling, packing and packaging. The organization hired an expertto create a dice design on the
customer’s choice.Then varying density polyethylene based ballsand colors are mixed together and ready for
boiling. After completion of the boil, print jobs arerun as a sample design allows clients. After printing, packaging
materials workers are ready forshipment

Bill of Materials
A Bill of Material (BOM) is a hierarchical structure of components required to make the finished
good. A BOM is basically a Product structure. RFL Plastic Product is usually made of mixed
materials and the sample dices. Mixed material means the quantity of Polyethylene balls, colors,
and other raw materials. The sample dice are designed by the expert people with high technology
machines which needed power supply.

The Bill of Material of RFL Plastic Limited is given bellow:

Reasons of Using Plastic Chair
• The price of plastic chair is cheaper than others, it is very useful and its weight is lighter
than others.

• We can recycle it.

• They can be cleaned easily.

• Also transportation of plastic chair is easier than others. Due to the design of the plastic
chair they can be combined each other.

• Main reason is we can produce plastic chair more quickly than others. As a result, People
commonly use Plastic Chair.
Recommendations
Currently, RFL is exporting $12 million per year to 38 countries. In 2015, our target is $30
million. To arrive the target point, RFL will face challenges from both national and international
competitors. Changing trends, needs and diversification of life are also challenges to RFL. It’s
not easy to understand to cop up with the speed of changing technologies. Also day by day, the
production cost is increasing. Company profile is becoming complex and hard to control and
maintain the standard.

Challenges
Bengal and Partex are the main competitors for RFL in export market from the local arena.
Although RFL is far away from its competitors but they are rising day by day. Bengal Group has
already got $2 million trial order from Dollar General, where RFL had been trying for last 2
years.

In international arena, there are countless competitors in the world. Most of the companies
mainly manufacturer’s products range is limited. Say, Décor’s main products are food
containers. Freedom’s main product is stationeries and Loblaws Canada has melamine. But RFL
has all the categories. So, RFL is facing competition from all the companies and it’s a difficult
fight.

In a certain period, trend changes. At present, Australian does not like Pink color, may be
tomorrow they like. Upper market and lower market do not choose same products, color,
delivery procedure, service contract etc. So, change is the main competitor for RFL every
moment.

Interactions with customers are one of the rising issues now. As the market is different, culture is
different and RFL employees cannot reach to customers due to distance & cost; it is difficult for
us to properly understand the need of customers.

RFL has lacking of good leaders. Company is growing very fast but leaders are not growing like
this.

Prospects
Our main competitive advantages are cheap labor and product & service varieties. As a result
price becomes low. Therefore, we can fight with the other companies from China, Australia,
USA in terms of price and quality at international market. These aspects open the whole world as
a better field for selling our products & services.

RFL is going to establish bonded factories from 2015. RFL Industrial Park (RIP, Gazipur) will
be the first export processing zone in plastic industries of Bangladesh which means price
decreasing. So, we can offer a better price to our customer in abroad.

Promises
RFL management promises to continue its journey by providing new services at the best price, in
the right place at the right time.
Conclusion
RFL is the number 1 export company in plastic industry of Bangladesh. There are other
companies like Bengal Group, Partex Group, Talukder Group also export plastic products. But
their product and service line is very narrow than RFL. By installing robotic & automation
system RFL introduce a different age in production history of Bangladesh. Our next year project
of developing mold and master batch (color) locally in Bangladesh will help RFL to fly in the
sky. Making decision of outsourcing design makes RFL more competitive for its rival in the
international market. We believe we will be the largest plastic manufacturer in the world within
2025.