slasonlop

Slasonlop Manufacturing, Inc. (SMI) Case Study

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1. Background of Slasonlop Manufacturing Inc. (SMI)

Slasonlop Manufacturing, Inc. (SMI) is joint venture incorporation between world

renowned British Sporting Equipment Company and huge Malaysian rubber plantation

company. The main production for this joint venture company is golf ball, supplying the ratio

of high demand gold ball throughout local market and worldwide. Slasonlop manufacturing

plant is currently located in Seremban, Negeri Sembilan, while the head office is situated in

the heart of Kuala Lumpur, Malaysia. The plant began operation of producing tons of golf

balls as early as 1985, where Mr.Frankie Zakaria is the current Plant Manager with total of 15

years’ experience in factory management.

2. The Organizational Structure

The plant is managed by Mr. Frankie Zakaria, with his new secretary Min-Ah. Former

secretary that used to work under him, Sharifa has left the company after receiving a higher

paying executive secretary position from another company nearby the plant. Figure 1.1

briefly explained the organizational structure in Slasonlop Manufacturing, Inc. (SMI). Ahmad

is currently the factory production manager and underneath his supervisions are 3 lead

foreman for 3 different shifts; morning, afternoon and night. Baba, the head of morning shift

with 21 production workers, or work forces (WF), followed by G.Kallahan, 21 WFs and the

well-experience Shariff, also with 21 WFs.

3. Scenario of Production Output

Based on current factory rated capacity, altogether with three-shift combined, 6-days

a week, the maximum production of golf balls (in dozens) that can be produced was 22,000

per month. The plant still have to cover the burden of pending orders from other subsequent

buyers which totalled of 11,000 dozens per month till the 1st quarter of 1991. The business

opportunity for Slasonlop in that year came in strong shape as they have received a

conformed letter of Credit (LC) of 40,000 dozens of golf balls from Japanese buyer. The LC


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officially started on July 1990 and the expiry period was on December 31, 1990. If the plant

fails to deliver the requirement, not only Slasonlop will lose the entire order, but they also

would have to face the penalty of USD $20,000.

4. SWOT Analysis

Strength Weaknesses

JV between world renowned British

Sporting Equipment firm and large

rubber produce outfit.

The plant is steered by a well

experience person.

LC from Japanese buyer will ensure

the company to stay relevant in the

market.

Factory output was reasonably

satisfied before they received the new

LC.

Quality of golf balls produced are not

suffered

Workers are not able to accept

Kallahan’s work style and

leadership.(demoralized)

Ahmad has been telling everyone to

produce more than the set target,

without any incentive to build of

morale.

The stress of failing the requirement

of the Japanese’s LC and possibility

of losing more money from penalty.

Workers are not agreeing to do

overtime, so need new recruit to

cover the vacant shift.

Opportunity Threat

Successfully deliver the demand will

boost the market rating and the image

of the company throughout

worldwide recognition.

Failure to deliver means losing the

opportunity of next bulk order, but

also will be penalised.

Mr.Zakaria’s wariness of the

increasing number of complaints from

the Union Federation Leaders


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Figure 1.1: Organizational Structure at Slasonlop (Seremban)

5. Problem statement

With some pending demands from local buyers that need to be fulfilled, the company

yet received another promising letter that guaranteed them to boost more profit in future long-

run. But, despite securing a steady LC from the Japanese buyer, the plant capacity could not

be able to withstand the newly improved demand for the business. The problem is simple;

how to fulfil the numbers of demand from the LC plus settling down the pending orders while

dealing the internal issue that leads the production of golf balls going downwards.

In such a short time period, the plant has need add a new extra-production scheme that

enables the shift to be stretched at night, which monitored by a well-experience foreman.

Also, numbers of demoralized workers has objected themselves to be put in the night shift;

leaving Mr.Zakaria with no other choices rather than deploying the 22 new additional

workers at night. Changing of foreman leads to complain about the shift-rotating system from

the workers.

Other related issue which are minor to the case are Ahmad’s professionalism, which

forced the workers to bail out from the production schedule because of tired being told to

work more hours without any incentive ahead.


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6. Analysing the Situation

Since Slasonlop has been awarded with the LC, Mr.Zakaria has come up with a

strategy to commit with the demand, so that production numbers won’t fall behind. Since the

departure of Sharifa, a well-talented secretary to assist Mr.Zakaria, then came Min-Ah into

the picture. A young, beauty lady and yet able to work well in the plant at first did not cause

any problems among the workers. But, since then, the issue of disciplinary has started to arise

as Mohamed and da Silva often wasting their time at her place, even though without any

appointment to see Mr.Zakaria, leaving their production workforces unsupervised.

Secondly, while Mr.Zakaria came up with diagnostic plan to add another shift at

night, the company also need to recruit 22 additional workers to support the production

numbers. Problem arise when Mr.Shariff, the talented and well-experience afternoon foreman

has been assigned into working at night shift, with the newly-addition of fresh –and-lack-of-

training workers. Shariff’s track record; based on the respond from the current workers has

stated that he is very friendly with his colleagues; professional and respecting other’s privacy

and personal problems. That explained why most workers admired him and why the number

of production increased before September 1990 at his performance. (See Figure 1.2)

Figure 1.2

Production Output (In Dozens)

Month Plan Actual

Feb ‘90 15,000 14,500

March 15,000 15,200

April 15,000 15,300

May 15,000 15,000

June 15,000 14,700

July 15,000 15,500

August 15,000 15,200

September 22,000 17,000

October 22,000 17,500

November 22,000

December 22,000


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But, despite having Shariff monitoring the ‘green’ workers at night, his coordination doesn’t

affect the his track record, as his night shift has produce more than Baba and Kallahan; the

morning and afternoon foreman. Perhaps, the attitude differences between Baba, Kallahan &

Shariff adversely affecting the morale of the workers. However, it was unfair to pinpoint the

blame to Kallahan and Baba, as there other reasons behind the less production. Workers

frustration on how Ahmed ran the plant should be put into consideration also. Ahmed, the

Production Manager, had been telling everyone to stay back, work more in order to surpass

the set target, without paying them for extra hours that has been fulfilled.

7. Recommendation

Despite facing all kind of complaints from the Federation, regarding the behaviour of

Slasonlop superior, well it is agreeable that to deliver number of orders right on schedule

should become the plant’s top priority. As for the recommendation, to be fair to all workers,

especially seniors, the entire ‘green’ intake should be placed in every shift, leads by those

three foremen. A combination of old and new team members should be mixed up so that the

new intake could learn how to operate the machinery more affectively. This would lead to

room for production improvements and mixed relationship among staff. Perhaps by having

this kind of method, the numbers of Breakdown by work Crew will have improvements, on

every shift.

Da Silva and Ahmed, who has been reported often wasting their time ‘hitting’ on Min-

Ah, should be put under intensive work monitor. All of the complaints from workers

regarding them should not be taken lightly. Reputation of the company and the conducive

mood for production always become number one in any plant, and if those 2 did now show

any promising steps to cover up their past mistakes, why keeping them?

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