Contemporary operations management

practices in Bangladesh: “A case study of

Electro Group”
Introduction:

Competitive marketing of commodities from different countries is the result of globalization.

Timely production is the precondition of availability of commodities in time. Availability of
power supply (Electricity) is a must for uninterrupted production process. As such power
technology solutions play the crucial role for uprising the business as effective and competitive.

Electro Group has always been in the forefront of dealing with the latest power solution and
technology products to meet the crucial requirement. This company is continuously striving in
both Business Power Improvement and Research and Development so that their products become
the customers’ first choice.

Objectives of the Project:

Importance of uninterrupted power supply has always been a very fundamental factor for

the effectiveness of firms’ production especially in the developing country context. The main

Purpose of this study is to finding out the operations management practices of Electro group.

Description of the organization:

The Managing Director of Electro Group Engr. Md. Ansar Uddin is the entre-preneur. In 1992 he
established the Generator servicing company "Electro Mechanical Service Limited (EMSL)".
Now the company has expanded with 10 branch offices and about 125 Service Engineers are
giving round the clock service throughout the country. Subsequently Engr. Md. AnsarUddin
started import-ing complete Generating sets from European countries. He became the agent of
world famous Generator Brand "SDMO" of France. Through his business visits in European
countries he observed that Generator companies bring major items, such as Engines and
Alternators, from manufacturers. Then those are assembled as complete Generating sets with
brand names given by the foreign companies. So he seriously thought of assembling Generating
sets in Bangladesh.

In 2004 he established the Generating set assembling company "EM Power Limited (EMPL)".
EMPL is assembling and marketing Generating sets of vari-ous capacities starting from 5KVA to
2000KVA with the brand name of ELEC-TRO. So far about 800 sets assembled Generators have
been installed in important Government and Private Organizations. Now about 250 Engineers
and technicians are working in EMPL. Engr. Md Ansar Uddin continued his simultaneous effort
in manufacturing other items of power sector. In 2002 he established Energy Meter Co. Ltd
(EMCL). EMCL is assembling KWHr meter branded as "ELECTRO". Now about 100 people
are working in EMCL.
 PROFILE OF THE ORGANISATION

Name of the organization Electro Group

Regd. Office 28 Dilkusha C/A, 19th Floor, Suite # 1901 &
1902,Dhaka-1000, Bangladesh

E mail electro@emsbd.com
Fax +88 02 9559346
Phone +88 02 9552060
Website http://www.electrogroupbd.com/

Area of Operation Baro Rangamatia,Durgapur,Ashulia,Dhaka

Mission

Electro Group’s mission is to create a long-term, sustainable value for their customers. They will
achieve this by manufacturing, developing, marketing, and supporting products that deliver rapid
returns through lower costs and improved customer responsiveness. More importantly, their
motto is to enable their customers obtain the best satisfaction and attain duly their business
objectives through their dedicated endeavor.

Group Overview :

 Electro Mechanical Service Ltd

 EM Power Ltd (EMPL)
 Energy Meter Company Ltd (EMCL)
 Electro Solar Power Ltd (ESPL)
 Electro Battery Company Limited

Product and services:

 Electro Generator
 Electro Battery
 Electro Meter
 Electro Solar
 Spare parts

Fields of Activity:

Electro assembles European standard diesel generator in dedicated factory at Ashulia (a suburban
area near Dhaka), imports the engine and alternator from the country of origin as follows:
DEUTZGermany, Yanmar-Japan, John Deere-France/USA, Perkins-UK, Volvo-Sweden, Mecc
Alte-Italy.Electro group has set up their own R&D department to do some customized
electronics products and upgrading them as well. Electro Mechanical Services Ltd. is also
working with turbine and solar energy system to protect environment. Electro group has the
factory to manufacture the energy meter, and imports all the necessary accessories from
overseas.

Discussion about solar power operation management issues of Electro group:

Electro Solar Power Ltd. a sister concern of Electro Group comes as the first Solar PV Module
manufacturer in Bangladesh. Electro Solar adds a new era in solar power sector in Bangladesh.
Electro Solar Power Ltd is established in 2009 with 1200 square meters of manufacturing plant
area at Ashulia, Savar. Workforce comprises of 10 engineers and 75 workers. They are all
experienced in handling electricity and electronics. They have enriched R&D facility. All solar
accessories like charge controller, inverters are already developed in this R&D center.

Major solar projects:

Client info Capacity Projects

REB ,15 upozilla complex 30KWP 15
PWD, Building for the welfare of 40 KWP 1
freedom fighter, mohammadpur
AKH Group,Dhamrai 40 KWP 1
PDP Biddyut Bhaban and WAPDA 37.5 KWP & 32.75 2
Bhaban KWP
GP all over Bangladesh 2.5 KWP~ 5 KWP 200

Completed Other Projects

 Grid Tie solar system(capacity: 1kwp~10kwp) : > 150 projects

 Off-grid solar system(capacity: 100wp~5kwp) : > 150 projects
 Delivered PV module (Size: 5wp~300wp) : > 4MWP

Supply chain management procedures:

Function of Physical distribution:

Inventory control

a) How much to order?

b) When to order?

Warehouse (private)

a) Ashulia

Material handling

a) Maintain the quality of storage

b) Moving right goods at the right time to make them available to the right customer.

Transportation

a) Own

b) Private

Channel structure:
 Indirect

End Interme
User diary

Manufa
cturer

Level of intensities:

Distribution from single outlet

Exclusive

Ware house entry process:

1. Normal entry
2. Warranty entry

A) Normal entry [which come from direct principle]

 Entry new products

 L/C number
 About product part number and serial number
 Input to the excel sheet
 Kept in store
 Delivery

B) Warranty entry

 Entry Defective products

 Match with the product part number and serial number
 Input to the excel sheet
 For Defective products kept in store[ for physical evidence]
 Delivery
Current process (re-placement flow):

The way they make the solar panel:

Raw materials:

A solar PV module consists of solar cells, glass, EVA, Ribbon, back sheet and aluminum frame.
They collect these raw materials from abroad and local markets.

Process of manufacturing:

The components and the process of manufacturing a solar panel are broadly described below.
There are 3 kinds of solar panels available on the market:

1. Mono crystalline solar panels

2. Poly crystalline solar panels
3. Thin film solar panels

Thus, at cell structure level, there are different types of material for manufacturing, such as mono
silicon, poly silicon or amorphous silicon (AnSi). The first 2 kinds of cells have a somewhat
similar manufacturing process. The steps of producing a crystalline solar panel are given below:

Step 1: Sand

It all starts with the raw material, which in our case is sand. Most solar panels are made of
silicone, which is the main component in natural beach sand. Silicone is abundantly available,
making it the second most available element on Earth. However, converting sand into high grade
silicon comes at a high cost and is an energy intensive process. This product they purchase from
local markets.
Step 2: Ingots

The silicone is collected, usually in the form of solid rocks. Hundreds of these rocks are being
melted together at very high temperatures in order to form ingots in the shape of a cylinder. To
reach the desired shape, a steel, cylindrical furnace is used. In the process of melting, attention is
given so that all atoms are perfectly aligned in the desired structure and orientation. Boron is
added to the process, which will give the silicone positive electrical polarity. Mono crystalline
cells are manufactured from a single crystal of silicon. Mono Silicon has higher efficiency in
converting solar energy into electricity, therefore the price of mono crystalline panels is higher.

Poly silicone cells are made from melting several silicon crystals together. You can recognize
them by the shattered glass look given by the different silicon crystals. After the ingot has cooled
down, grinding and polishing are being performed, leaving the ingot with flat sides.

Step 3: Wafers

Wafers represent the next step in the manufacturing process. The silicon ingot is sliced into thin
disks, also called wafers. A wire saw is used for precision cutting. The thinness of the wafer is
similar to that of a piece of paper.

Because pure silicon is shiny, it can reflect the sunlight. To reduce the amount of sunlight lost, an
anti-reflective coating is put on the silicon wafer.

Step 4: Solar cells

The following processes will convert a wafer into a solar cell capable of converting solar power
into electricity.

Each of the wafers is being treated and metal conductors are added on each surface. The
conductors give the wafer a grid-like matrix on the surface. This will ensure the conversion of
solar energy into electricity. The coating will facilitate the absorption of sunlight, rather than
reflecting it. In an oven-like chamber, phosphorous is being diffused in a thin layer over the
surface of the wafers. This will charge the surface with a negative electrical orientation. The
combination of boron and phosphorous will give the positive - negative junction, which is
critical for the proper function of the PV cell.

Step 5: From Solar Cell to Solar Panel

The solar cells are soldered together, using metal connectors to link the cells. Solar panels are
made of solar cells integrated together in a matrix-like structure. The current standard offering in
the market are:

1. 48 cell panels - suitable for small residential roofs.

2. 60-cell panels - this is the standard size.
3. 72-cell panels -used for large-scale installations

After the cells are put together, a thin layer (about 6-7 mm) of glass is added on the front side,
facing the sun. The back sheet is made from highly durable, polymer-based material. This will
prevent water, soil, and other materials from entering the panel from the back. Subsequently, the
junction box is added, in order to enable connections inside the module.

It all comes together once the frame is assembled. The frame will also provide protection against
impact and weather. The use of a frame will also allow the mounting of the panel in a variety of
ways, for example with mounting clamps.

EVA is the glue that binds everything together. It is very important that the quality of the
encapsulate is high so it doesn't damage the cells under harsh weather conditions.
Step 6: Testing the Modules

Once the module is ready, testing is carried out to ensure the cells perform as expected. STC are
used as a reference point. The panel is put in a flash tester at the manufacturing facility. The
tester will deliver the equivalent of 1000W/m2 irradiance, 25°C cell temperature and an air mass
of 1.5g. Electrical parameters are written down and you can find these results on the technical
specification sheet of every panel. The ratings will reveal the power output, efficiency, voltage,
current, impact and temperature tolerance.

Apart from STC, every manufacturer uses NOCT (nominal operating cell temperature). The
parameters used are more close to ‘real life’ scenario: open-circuit module operation
temperature at 800W/m2 irradiance, 20°C ambient temperature, 1m/s wind speed. Again, the
ratings of NOCT can be found on the technical specification sheet.

Cleaning and inspection are the final steps of the production before the module is ready to be
shipped to homes or businesses.

Findings:

Strength & opportunities:

When considering Electro Group as a partner, in the process of execution, installation, support
and maintenance in power sector and turnkey projects, it is primordial to capitalize on the
strengths of the establishment:

Top ranked company within our field of activities

 The leading company in the field of precision powers the power and environmental
control systems.
 Wide coverage and outlets in our markets
 Experience and professional human resources availability.
 Commitment to high standards and ethical values.
 Long term planning with persistent perspective
 Profitable and stable organization.
 Exchange and availability of expertise and knowledge gained in different territories.
 Unlimited back-up from manufacturers and principals.
 Wide range and coverage of the product portfolios
 Availability of controllable spare parts stocks, (levels controlled by manufacturer).
 Reliable performance

The recognition of opportunities is one of the key elements necessary for the success at any
company. Opportunities that arise from association with Electro Group stems from:-
  The envy reputation that the company enjoys.
 The close association we have established with key organizations.
 The strategy of adopting industry based standards.
 The excellent price/performance ratio of proposed solutions and products.

Challenges of Electro Group

In the context of scarcity of power, it became very obvious that Bangladesh needs alternative
source of energy to be competitive in the business world. It was predicted that there is chance of
ensuring a good profit out of this trend. Observing the huge demand for alternative source of
power, many companies are planning to come into this business. Government’s regulation on
Bangladesh Standards & Testing Institution (BSTI) compliance is also a threat for Electro group.

Electro’s Strategy

Uncompromising quality has been the prime asset of the company. Its assurance to clients for

quality product, and providing secure future for employees makes it stand out from others. It

believes that reputation for quality does not happen by chance, it has to be developed gradually
over time. Electro group began its sound reputation of delivering quality products and services
since1992,building on a foundation of techniques and controls put together over years of
successful operations.There are many energy device manufacturing companies in Bangladesh,
such as, Rafim Afrooz Energy, Grameen Energy, and many more, but among these companies,
Electro has made a very decent position in the market. A number of product related factors has
been contributing to the success of the current position. Essentially, Electro’s main target is to
manufacture or import the environment friendly products. Electro group has already come up
with a bundle of products that require no input like fuel, gas, coal, etc., except the sun light.
Electro group has created many solar related products like, solar panel (photovoltaic cell), solar
batteries, solar inverter, and many more pertinent products. At Electro, the new product
development process is overseen by a product development and research unit, which consists of
a group of adroit senior engineers who try to invent the required new product or try to upgrade
the existing product. When the concept of a new product is being developed by a team of senior
researchers, some teams of engineers work to establish a product model which would be the
design or architecture of that product. Finally, the most effective design is chosen for customers
with a hope to yield maximum benefits. Electro tries to maintain sustainable relationship with the
customer through post-sale services

Recommendation:

Service engineers did not identify the specific problem. Every time new service engineer was
coming and telling customer about new problem. Different service engineers are sending for
same problem. customer become dissatisfied and for this reason sell will be declined in future.
We have found some following problem from adapted employee:

 Stock out problem

 Not delivery at proper time
 Not inform problem to the original sales people by
 Proper service
 Place
 Manpower
 Branding
 Promotion

If company solves these problems then it will grow faster.

Conclusion: Bangladesh's round the year sunshine can make it a solar energy country. Both the private
and public sectors are working to popularize solar energy in the country. Because of lack of technical
know-how and follow-up, the solar photovoltaic has not performed as it could have. A number of NGOs
are also selling photovoltaic modules, batteries, regulators, invertors, as well as photovoltaic lamps,
battery chargers, garden lights etc. The use of this renewable energy source has been facilitated by the
government. As we all know Bangladesh as we all know is suffering from acute energy crisis. Only 40 %
of its 150 million people have some form of access to power supply. Rest of the pollution have been
promised of power supply by 2020.The demand of power per day now is about 5200-5500 MW. The
effective generation capacity is 3500-3800MW. This cause massive load shedding almost everywhere
every day . So we think Electro Group will have a great opportunity to take first mover advantage and
tap the market as well. If they implement the marketing plan properly then Electro Group will have a
strong association with the target people and build the brand image towards the customer mind.

References:

https://en.wikipedia.org/wiki/Solar_cell

http://electrogroupbd.com/index.php/home

www.google.com

www.wikipedia.com
www.energybangla.com/index.php
Appendices:

EVA (ethylene vinyl acetate): This is used for airtighting glass and back sheet.

STC (Standard Test Conditions)

PV (Photovoltaic)

Product and services:

Electro Generato

Electro Battery

Electro Meter

Electro Solar
Spare parts

Exhibit 1: Electro Group’s Corporate Customers

Source: Compiled from the website of Electro Group: www.electrogroupbd.com

Exhibit 2: Price Comparison between the Products of Electro Group and the Others
Source: Adapted from the Marketing and Sales Division of Electro Group.