Case Study

Ho and Ng Sdn Bhd is a medium size manufacturing firm specialized in manufacturing plastics containers for kitchen use. The firm has been running for 15 years and it is growing slowly. The firm has a good fame of offering reasonable quality products owe to its structured and good management system. However, it is not that responsive to its supply chain due to the rare changes of customers needs on using plastic containers. Its major competitors are some small plastics manufacturers scattered around Klang Valley and Pinang. Though most of the competitors are usually targeting their own markets in their domestic region, one of them is growing steadily. The competitors product is spreading slowly to other states in recent years. Furthermore, some international trader such as Daiso and Aceshardware have been importing kitchen-wares for the last 10 years. Ho and Ng Sdn product grow has been stagnant for the last two years.

Together with the pandemic COVID-19, Ho and Ng Sdn Bhd business is receiving impacts from losing orders from the customers. Some staff is forced to take unpaid-leave for the first time and some is forced to have pay cut. Besides, some customers are demanding extra logistics services to be offered with no additional charges. There are also feedbacks from the customers on the outdated fashion of the design of the plastics containers as customers compare them with the imported ones which they purchased from international traders such as Daiso.

Miss Ng, the director is facing some pressure to relax the firms structural planning system to respond more to the supply chain requirement. She knows the decision will affect the existing management system to offer more responsiveness to the supply chain system. A weaker management system will have less control on its production and warehouse system which will slowly mess up the current operations system. However, the sliding business is forcing her to make an important decision to sustain the business. She quickly meet Mr.Ho, the warehouse manager and other managers to discuss over the future of the firm.

Questions

1. Describe the business situation that Ho and Ng Sdn is currently facing. (15 Marks)
2. Imagine that you are in Miss Ngs position. What decisions should be made? Explain your reasons. (15 Marks)
3. Suppose that Miss Ng decides to offer a new plastic bucket to the market. Examine FIVE (5) important questions to be addressed from the materials requirement planning (MRP) perspective. (15 Marks)