M/s. Jai Bhawani Industries Limited (JBIL) is a 30 years old company engaged in the manufacture of auto components for Indian and International markets. The company has grown over the years due to the growing markets for high quality components and the entry of world famous MNCs in the Car/Commercial Vehicles segment in India (both in Manufacturing and Sales). These companies also export their vehicles to mature markets as also source components for their key plants in Europe and USA. About 60% of the products of JBIL are sold in the International markets and remaining in the Domestic Sector.
As the demand for the components increased, JBIL also expanded its manufacturing activities from a single unit to 7 units during the last 13 years thus achieving an overall turnover of Rs.5600 cr. Per annum. JBIL products though not in a market leadership position, enjoy huge favor with the buyers both International and Domestic for its quality and value for money.
JBIL has 3 major manufacturing units within a radius of 60 kms and there is a considerable interface amongst them for raw goods, semi-finished and finished products including administrative support.
Nilesh Misra, aged 48 years, BE (Mech), MBA (Oprs) is the General Manager Production of the largest of the 3 units and he is assisted by his deputy Daler Singh, DME, Senior Manager Production. Nilesh Misra has been working with the company for last 10 years and Daler Singh joined 3 years ahead of him. Both have industry experience and are competent to deliver desired production volumes. Nilesh Misra joined the company as DGM- Production and got 2 promotions as Jt. GM and GM. Daler Singh joined as Assistant Manager and got 3 promotions as Dy. Manager, and Sr. Manager.
Since his joining Nilesh Misra worked as Head of the Maintenance Department and has been shifted to production Department 4 years back. Similarly Daler Singh joined as Assistant Manager in Quality Control Department and was shifted to the Production department almost at the same time as Nilesh Misra. Since both performed well in their previous departments the Management shouldered them the Production responsibility for their individual growth and career advancement. And they have performed well.
During the past 4 months the Production Department has not been functioning well and there are reports of production losses due to wastage, scrap, improper use of machines by operators, higher power consumption and low productivity. Nilesh Misra and Daler Singh have individually and jointly spoken to the line supervisors and key operators on these performance issues but the corrections were too temporary and sketchy. Nilesh Misra did observe that the line supervisors are falling short of adhering to the prescribed standards and methods of working. When he questioned them, they informed that Daler Singh has advised them to follow a different work method which would reduce wastages and scrap and would also improve productivity. Nilesh Misra does not go into more details or speaks to Daler Singh.