1

PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Company Profile

Bashundhara Paper Mills Limited (BPML), a sister concern of Bashundhara Group. The com-
pany was established in 1993 in Bangladesh as a limited liability company. After that, it was re-
organized into a stock company and is now a public company. After starting operations as a local
import substitution paper manufacturing company, another of his two companies of the same
type in his Bashundhara Group, 'Bashundhara Newsprint & Duplex Board Industries Limited'
was established. (Former Shahjalal News Print Industries Ltd.) and “Bashundhara Tissue Indus-
tries Limited” amalgamated with BPML on October 10, 2009. After the amalgamation of all
three companies caring out its business as a single legal entity and operated three separate units
as “Unit 1”, “Unit-2” and “Unit-3” BMPML for the administrative purpose. The four industrial
units, are separate in their location and product diversity. All are equipped with industry-leading,
state-of-the-art facilities and are regularly undergoing carefully selected refurbishment processes,
specifically to address achieving economies of scale and conservation of resources. . Energy
(electricity consumption) and water consumption per unit of production. Today, Bashundhara
Paper is a trusted source for both government and government-level paper needs, keeping overall
consumer pace of exports to over 25 different global destinations. Amazingly, we are the only
company in Bangladesh to successfully obtain ISO 9001:2015 and FSC-CoC certification at the
same time. This is due to our pursuit of environmental protection, which can be seen in various
green initiatives at our factory sites. And the introduction of the latest technology and process in-
novations. All production units of BPML have been operated by a group of domestically proven
technical and experienced papermaking professionals since its inception and are completely en-
vironmentally friendly using state-of-the-art Waste Water Treatment Plants (ETPs).
The Company runs through unique ERP solution (SAP), where this transformational technology
enables to bring together best practices across all functions of the organization to deliver highest
value to all external and internal stake-holders. The company continues to conduct regular audits
of its quality standards and customer satisfaction by internal resources and independent agencies.
This allows us to constantly develop our products in response to the changing needs and
preferences of our customers. One step ahead is the curve. These milestones have put
Bashundhara Paper at the forefront of change and ushered in a period of complete transformation
for the paper market in Bangladesh. (Paper, 2017-2018; Paper, 2017-2018)
 2
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Performance of Bashundhara Paper Products in 2017-2018 at a glance:

Incorporated: 1993
Year of listing in Stock Market: 2018
Market Category: A
Paid-up capital: Tk. 173 Corer
Net Revenue: Tk. 1082 Corer
Gross profit: 192 Corer
Net profit before tax: Tk. 49 corer
Local Sales: 1043 Corer
Export sales: Tk. 38 Corer
Total Income Tax: Tk. 54 Corer
Exporting countries: 21
Capacity utilization: 67%
Net Asset values: Tk. 49.18/share
EPS: Tk. 4.63

Source: (Production capacity of Bashundhara Paper increases to 143,000 MT annually, 2022)

Strategic Management
A strategic plan establishes what types of businesses the company will operate in and sets goals
for each. No business can operate properly without an effective strategic plan. Essentially, this
chapter will described the strategic planning, implementation and management of the
Bashundhara Paper.
 3
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

By creating the missions, policies, strategies and goals, headquarters established the framework
for divisions and business units to develop plans. The company gives divisions the freedom to set
their own sales and profit goals and strategies.

The head office carries out four planned activities

Company mission defining
Establishment of strategic business units (SBUs)
Resource allocation to each SBU
Planning of new stores, downsizing/withdrawal of old stores

Other plans for the Bashundhara Group will be taken over by the Managing Directors of the
individual business lines.

Mission
"We Are Passionate about Helping the World Excel in Education, Communication, Business
And Solitariness By Offering Eco-Sustainable Paper-Based Solutions"
(http://www.bpml.com/page/mission-values, 2020)
Vision
“For the People, For the Country” (http://www.bpml.com/page/mission-values, 2020)
 4
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Logo

Bashundhara Group Logo Bashundhara Paper Logo

Figure-02: Organogram of board of directors in BG.

On mentioned designated peoples as organogram are operate or conduct their activities from cen-
tral office or head office where a head of project also engaged in each project to liaison or coor-
dinate with top management and project officials and staffs.
 5
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Human Resource Management

About 55000 (Bashundhara Group) employees work over the total group where about six thou-
sand under paper mills. To deliver about 143000 MT paper and paper products here having more
experienced operators, helpers, engineers, accountants etc. Individuals whose jobs are designed
around the acquisition and application of information.
(Fundamentals_of_Human_Resource_Managemen.pdf) are considered as Knowledge workers,
and they are the soul of an Bashundhara paper mills, since highly valued engineering or techno-
logical task have to done by them. As instance process engineer, software engineer, CFO, FCA,
different machine operators etc. are nursing with high care of company owner. But due to over
growing job environment in paper sector and installing several new machine here experienced
peoples are highly turning. That’s why HR department facing more challenge day by day. To
hire them HR department is following technology system HRM practices here.

Recruiting
Competitions to hire talent or knowledge workers is very challenging for HRM departments.
Maximum times have face manpower shortage problem in this sector since newly paper machine
company publish job circular randomly with higher salary. Additionally, many companies are
asking applicants to provide an electronic version of their resume rather than a paper copy so that
it may be promptly scanned for "relevance" to the open position. Generally, the terms recruit-
ment means as a process for searching and obtaining applicants for job in vacant position or as
replacement, from among the available recruits. In BG, recruitment process is continue with fol-
lowing-process:

Planning

Strategy Development
 6
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Searching

Screening

Evaluation & Control

Figure-04: Recruiting System of BPML

Planning
This first stage of planning activities start from concern department and end with HR depart-
ment. Here planning involves mainly the translation of likely job vacancies and information
about the job nature, also how many & which types of employee required here specify. Concern
department ask their required manpower with company approved manpower requisition form
and HR department start their activities with verification of submitted requisition form.

Strategy Development
The recruitment function of BG does not produce the recruitment strategy document but it is a
document created by human resources department that serves as the company's main driver. Here
this department been decided finally, how hired their required employee, with internal sources or
externally.

Searching
BG searching their employees with online circular mainly e.g BDJOBS.Com. This circular may
also from company website, or social network, or daily newspaper or job circular site. I’ve seen
here have a different WhatsApp group to publish any news on paper mills centric and about 108
mills are existing over the country.

Screening
In this step, BG HR team segregate or remove the early stage of recruitments. Those, whose are
visibly unqualified do segregate here and prepared a shortlist.

Evaluation
Here BG team identify which commitment have to make with the upcoming employee based on
interview, reviewing his/her career, experience, talentless etc. In this stage, employee also get
 7
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

chance to bargain with management for their demands.

Employee Selection
Because of the demand a certain set of technical and professional skills, technology-based firms
find it particularly difficult to hire talented individuals. To thrive in the demanding environments
of today's dynamic firms, employees need to be smart and adaptable. Additionally, there is a
shortage of these "qualified" people, thus there may be a variety of job options available. Once
candidates have been found, HRM must thoroughly screen them to make sure they mesh nicely
with the organizational culture. Background checks on applicants are quick and simple thanks to
a variety of Internet tools. The reality of organizational life today may center on a casual, team-
oriented workplace, one where there is significant pressure to do projects quickly and on
schedule, and a 24/7 (24 hours a day, 7 days a week) (round-the-clock) environment. In BG
group HRM selection tools help to “select out” people who aren’t team players, can’t handle
ambiguity and stress, or are a poor fit with company culture.

Training and Development

Additionally, technology is fundamentally altering how human resource managers hire, onboard, 
educate, and support workers as they manage their careers.  Internet ac-
cess has given HRM the chance to offer. In this case BG group arrange monthly training on IT,
office program especially on advance-excel. The benefits of offering management develop-
ment and language training courses online have been identified by four seasons. Employees can t
rain and work together in groups remotely thanks to teleconferencingtechnologies. Businesses th
at use technology frequently have a greater requirement for training.  Additionally, HR depart-
ments can give affordable training through teleconferencing and online courses to extend the HR 
budget.

Ethics and Employee Rights

Electronic surveillance of employees by employers is an issue that pits an organization’s desire
for control against an employee’s right to privacy. The development of increasingly sophisticated
surveillance software only adds to the ethical dilemma of how far an organization should go in
monitoring the behavior of employees who work on computers (see Ethical Issues in HRM).
Today, most businesses surveyed by the American Management Association indicate that they
monitor employees.

Motivational Tools
 8
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Knowledge workers appear more susceptible to distractions that can undermine their work effort
and reduce their productivity. Employers often believe they must monitor what employees are
doing because employees are hired to work by others. As motivation technique BPML follows as
below:
a. Motivating through job design
b. Motivating through rewards
c. Motivating through employee participation
d. Motivating through quality of work life programs

BPML’s ability to address external factors in remote or macro environments contributes to its
prominence in the global consumer goods market. This PESTEL/PESTLE analysis identifies
such external factors. The PESTEL/PESTLE analysis model is a tool for managers to understand
the impact of the external environment on the company. For BPML, these external factors are
very different given the international nature of their business. Yet companies must focus on max-
imizing their performance. BPML’s can achieve greater business performance and outline
growth opportunities in the international consumer goods market through strategies to overcome
the biggest threats and seize the biggest opportunities presented in this BPML PESTEL/PESTLE
analysis. Businesses face threats in remote or macro environments, but one way to achieve
growth is by focusing on product innovation.

Impact of international business environment on BPML

BPML has a great mission to improve the lives of its current and potential customers. Execution
of this mission takes place in a highly turbulent environment, not in the vacuum. After severe
pandemic situation over the world BPML has been overcome its economic recession tactically.
But in the worse condition due to ongoing long term Russia-Ukraine war increase the fuel cost
unexpectedly where the main raw materials and some chemicals price has been increased till
60%-75%. Its management being faced highly problem to procure the required raw materials and
chemicals as well as shipment/export the produced finished goods.

Political/Legal environment
BPML has tactical way of handling any political situations over country. Political ruling party or
opposition party both are handling smoothly by its management. But global political issue isn’t
on their hand and its negative impact also make problem to smooth operation.
 9
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Value Chain Model

Primary Activities: Inbound Logistics

About 27 items of raw materials and chemicals here using to paper production where maximum
are imported from Indonesia, Vietnam, Brazil, Russia, Finland, India, Thailand, Pakistan etc.
Inbound logistics continuously receive these item with also packing materials, stationery items,
Spare parts etc. Materials storing & distribution to concern department is led by Store & SPD
departments.
Primary Activities: Operations
At BPML-01, an Executive Director is functioning as operation manager while he gives
production plan based on market requirements. As per approved furnish raw materials ratio these
27 item has been provided Store department. And several production & process control manager
are guided from ED sir. Through process operation with optimum level about 8.00 MT paper
produced in every hour and transferred into converting section.
Primary Activities: Outbound Logistics
After converting section paper is goes into warehouse as FG. Warehouse manager controls
vehicle & transportation management system with monitoring loading-unloading also.

Primary Activities: Marketing & Sales

Corporate & dealers sales operate with twenty managerial staffs and about some are for retail
sales. Order collection & deposition money is mainly finished before delivery but some cases
credit also occurred. Form TIV, CS, Market Share, Customer Analysis etc. report it has been
shown that the Bashundhara paper is the market leader and no one is equal with BG in paper sec-
tor. To disperse local market campaign, rally, road show etc. are arranged some times.

Primary Activities: Service

Every FMCG sector have to face customer complain. BG isn’t dissimilar to others. For complain
management it has a Complaint management department. To satisfy their customers sometimes
discounts & offers been applied if been proved any similarity with customer acquisitions. Ex-
changing the products also been happened in some cases.

Support Activities: Firm Infrastructure

 10
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

BPML-01 is led by a Director at factory premises and about 1500 staffs & managerial staffs
hardworking here with shifting duty in 24 hours, it has been gained 1st positioned over the coun-
try since 2002.

Support Activities: Human Resource Management

Human resource department manage & train-up the employees on need basis. Probation review,
Mid Term Review, Yearly Appraisal with rewards, Yearly Talent Management Program, Foreign
Trip, Pleasure trip, wellness Program, Education loan, Car loan, Motorcycle Purchasing Loan,
Death Contribution ect. programs are led from human resource department.

Support Activities: Technology Development

All of official documents & employees information is online basis, e.g. internal memo/portal sys-
tem. ERP system is following for Raw materials, Packing Materials, Product Cost analysis, Sales
etc. Production & process control is also PLC & DCS basis.

Support Activities: Procurement

PR/Indent arisen for basic raw materials, Sourcing & Sample collecting, assuring by QA, and
then purchasing. Has been shown the procurement system as follows:

Marketing-Strategy
Normally two types of strategy- general marketing strategy & decision area strategy. General
 11
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

marketing strategy define how expand market more & increase market share. Decision area
strategy defines product development & variety, pricing set-up, distribution system, extension of
customer relation, promotion strategy.
Segmentation
No demographic or psychographic or behavioral segmentation but the geographic segmentation
are exist. Just need basis segmentation. The top most market is mainly Dhaka zone. So, mar-
keters give more attention on geographic segmentation. Segmentation from heterogeneous to ho-
mogeneous market also exist. Some of customer is only for A4 paper, some are for copier, some
are for writing, etc. Segmentation also depends on customer type, size, location, using capacity is
considering macro segmentation where micro segmentation to personal characteristics, purchas-
ing strategy

Targeting
Undifferentiated (mass) marketing- General product market, differentiated marketing (NCTB,
Army, Navy, Corporate market etc.), concentrated (niche) marketing- A4, Legal market,
Micromarketing (local or individual marketing)- Lower grade paper market
The 4P’s
Products

As paper manufacturer, the BPML is produce mainly writing, printing, liner, media, sack, tissue
grade paper where different GSM & sizes are available. Especially 17-gsm to 150-gsm paper is
providing by them.

Price

The product value of price has set some lower than others to gathered customer and it seems the
BG following pricing strategy. Also the product price has to change seasonally, occasionally. etc.
But this task is done considering rival activities. In this case, all of rivals take decisions seriously
based on various factor like stock position, raw materials price, different occasion etc.
Place
The product is being processed to market via dealer to retailer to customer. No of broker in this
chain. The sales team takes care & observes dealers activities and engage themselves to direct
sales-marketing also. The competitors are engaging different brokers to speed up their sells and
been success apparently also.
Promotion
The communication between BPML and its customers been face -to-face sometime. Direct
marketing (direct mail, e -mail, etc.), general advertising (TV, newspaper, etc.), social media
marketing and sales promotions (free shipping for a certain amount ordered, free samples, etc.)
are also exist. Campaign, road show, conference with the student of college, university already
 12
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

spread this brand from home to abroad. Through export marketing it has been sent the different
paper and paper products above 19 countries.

SWOT-Analysis

Strength
Brand image of its mother company given its extra opportunity since the customer has great
credibility to its mother Bashundhara Group. Higher production & huge product variety is the
mainly strength of BPML. The BPML can produced mainly writing & printing grade paper but
their product variety is more than it. This is because of higher production capacity, older manu-
facturer. As well as manufacturing paper, it also converts this paper to BBS (Book Binding
Shop) & Spiral binding products. Resulting, a customer can collect his need or more products
from only one point and can save his time & money easily.

WEAKNESS.
The distance is far from business capital & port city, so that have to pay more cost on
transportation than other competitors which are situated in Chittagong. Due to huge product
variety, there need more talent workers. But other new comer hiring its experienced worker with
more pay, that’s why some time it’s some may under shut due to manpower shortage.
Opportunity
Huge amount of national & international market position expansion their market opportunities.
Also the position as near of Dhaka, can led the whole market over the country easily.
Threat
BPML has five number of paper machine which are mainly old version and its manufacturing
date around 40 years ago. But some of new comer is coming with ultra-modern new technology
based paper making machineries which is really concerning matter.
After all on above discussion in SWOT, it is appeared that a bright future to BPML, if its
management added new ultra-modern technology based machineries to increase productivity &
product variety.

Products Line

A product line is a group of related products all marketed under a single brand name that is
sold by the same company. Organizations sell numerous product offerings under their
different image names, trying to separate them from one another for better ease of
use for purchasers. Organizations frequently grow their contributions by adding to
existing product offerings since buyers are bound to buy items from brands with
 13
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

which they are as of now recognizable. The BPML has different product line also
shown as below:

Wrapper/Packing Materials: Liner, Kraft, Corrugated Medium, Media paper etc.

Printing Paper: White Printing-42, 47, 50, 55, 60, 61, 65, 70, 80, 100, 120 Gsm
Writing Paper: Newsprint, Writing-42, 47, 50, 55, 70 Gsm
A4-Paper: 65, 70, 80 Gsm
Coated Paper: CCPM, Art Paper, Glasine Paper, Bidi Paper.
Tissue Paper: Facial Tissue, Paper Napkin, Kitchen Towel, Toilet Tissue, Baby Diaper,
Hand Towel, Clinical Bedsheet etc.

Core Competitor:
Meghna Pulp & Paper Mills Ltd. (sister concern of Megna Group) with Liner, Kraft
and Corrugated Board.

Stakeholder Analysis
Stakeholders are individuals or groups who have a personal or other interest in the company and
need assistance in making the company successful. The term stakeholder has its roots in horse
racing. A foot race is a race in which the prize money is derived from the entry fee paid by the
racehorse owner to participate in the race. The entry fee is called stake, which is synonymous
with risk. A natural or legal person who processes the entry fee until the prize is awarded is
called an interested party. Traditionally, stakeholders have no financial interest in race results

Figure-06: Stakeholder of Bashundhara Paper Mills Ltd.

Stakeholder categories derived from paper stakeholder analysis
Manufacturers and their representative bodies: Manufacturers of paper products. As example,
RFL company’s BBS (Book Binding Shop) & spiral book preparing depends on BPML’s
produced base paper, also Panjeree Publications, Different daily Newspaper.
 14
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Retailers: Who selling the paper & paper products. Examples: Different stationery shop,
libraries.
Policy community and multi-lateral organizations: BSTI, Environmental authority, Labor
Organizations etc.
Regulators and statutory advisory groups: ISO, TAPPI, SCAN
Primary producers: Whose are made the raw materials of paper. As example: APRIL, Indonesia
producing & supplying the main raw materials of paper, the pulp.
Customers: All of student, writer, publishers etc.

Business level strategy:

Michael Porter, a professor at Harvard Business School, is widely regarded as the Father of
Corporate Strategy. According to Porter, there are three types of business-level strategy any
organization can pursue to gain an advantage over its competitors. These are cost leadership,
differentiation and focus.

Cost Leadership

Organizations that pursue cost leadership gain a competitive advantage by reducing op -

erating costs to a level below the industry average. Business owners then pass these
savings on to their customers with low-priced merchandise or services or maintain av -
erage pricing to increase their profit margin.

Differentiation

Companies that leverage a differentiation business-level strategy win market share and
defend higher pricing by offering a unique product or service features that are valued
by their customers.

Focus
Here the company focuses on one or more narrow market segments. To attract cus -
tomer here use either the cost leadership or differentiation.

Following Strategy
 15
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Based on above brief description of market strategy I can say that the Bashundhara
Paper Mills is following cost leadership and differentiation both on two different
grades of products where through a lowest cost with minimum quality of liner/media
it’s following the cost leadership and with a unique product of Bidi Paper this is
following differentiation strategy.
Following lowest price with minimum quality of liner media or kraft paper BPML
captured most of the market share in Bangladeshi local market, even in some foreign
country like Nepal, Srilanka, Maldeep etc. Maximum number of packing industry
purchased this paper from BPML due to its lowest price with minimum optimal quality.

On the other hand, a unique grade of paper like ‘Bidi Paper’ is producing & supplying
with more rate than actual. Here the BPML is characterizing as only one local
manufacturer since no one can produces it like him. And the BPML providing the Bidi
Paper to different tobacco industry like Akij, British American Tobacco etc. though
another manufacturer Affil Paper Mills produce it but very far from its unique quality
of BPML. This phenomenon is similar with differentiation strategy.

A distinctive competency is an organization's strengths or qualities including skills,

technologies, or resources that distinguish it from competitors to provide superior and
unique customer value and, hopefully, is difficult to imitate. The quality paper grade
like Bidi Paper has been given strength and superiority to BPML from others
competitors.

Production, the creation of products and services, is an essential function in every firm.
Production turns inputs, such as natural resources, raw materials, human resources, and capital,
into outputs, which are products and services. Managing this conversion process is the role of
operations management. The profit of any business depends on productivity while the
productivity of any companies controlled by business strategy, proper locations and its mission,
vision etc.

Productivity
The term “productivity” refers to the performance metric that is usually used to measure the
efficiency of the production process of a company during a given period of time. It can be used
to measure the efficiency of human capital or machine.
 16
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

The formula for productivity is very simple and it can be expressed as output produced divided
by input provided. Mathematically, it is represented as,
Productivity = Output / Input
Here, the productivity of labor, machine has been shown on BPML historical data in below. Also
the multifactor productivity has been shown.

Monthly Numbe
Machine Working Labor
Producti Machine r of Working
Month Productivit Days Productivity
on (MT) Run Time Worker Hrs./Day
y (MT/Hr.) /Month (MT/Hr.)
(Hrs.) s/Day
January 2915.512 667.95 4.365 96 8 25 0.152
February 2765.355 671.45 4.118 96 8 25 0.144
March 2859.283 646.45 4.423 96 8 25 0.149
April 2420.702 671.45 3.605 96 8 25 0.126
May 2937.855 661.65 4.440 96 8 25 0.153
June 2910.794 651.75 4.466 96 8 25 0.152
July 2160.231 393.5 5.490 96 8 25 0.113
August 2122.058 631.55 3.360 96 8 25 0.111
September 1918.063 528.65 3.628 96 8 25 0.100
October 2475.122 551.95 4.484 96 8 25 0.129
November 2524.314 640.6 3.941 96 8 25 0.131
December 2714.878 666.45 4.074 96 8 25 0.141

Table-01: Machine & Labor Productivity Calculation in BPML (Source: Primary)

Material Depreciation Multifactor
Month Producti Overhead Labor Cost
Cost Cost Productivit
(2021) on (MT) (Tk./Month) (Tk./Month)
(Tk./MT) (Tk./Month) y (Kg/Tk.)
January 2915.512 160353160 12245150.4 6414126.4 9329638 0.015
February 2765.355 152094525 12245150.4 6222048.75 9329638 0.015
March 2859.283 151541999 11835719.4 6147458.45 9329638 0.016
April 2420.702 130717908 11780246 5567614.6 9329638 0.015
 17
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

May 2937.855 152768460 10893159 6169495.5 9329638 0.016

June 2910.794 151361288 11780798.6 6112667.4 9329638 0.016
July 2160.231 112332012 11643176 5616600.6 9329638 0.016
August 2122.058 110347016 10153085.7 5623453.7 9329638 0.016
September 1918.063 99739276 10016113.8 5370576.4 9329638 0.015
October 2475.122 128706344 9398508.7 5816536.7 9329638 0.016
November 2524.314 131264328 10890536.8 5742814.35 9329638 0.016
December 2714.878 141173656 10930279.6 5918434.04 9329638 0.016

Table-02: Multi factor productivity calculation in BPML-01 (Source: Primary)

Forecasting
Definition: Forecasting is a statement about the future. It is estimating future event (variable), by
casting forward past data. Past data are systematically combined in predetermined way to obtain
the estimate. Forecasting is not guessing or prediction.
Forecasting help managers to:
• Plan the system
• Plan the use of system
Forecasts affect decisions and activities throughout an organization
 Accounting, finance
 Human resources
 Marketing
 MIS
 Operations
 Product / service design
Common features of forecasting:
 Forecasting is rarely perfect (deviation is expected).
 All forecasting techniques assume that there is some degree of stability in the system, and
“what happened in the past will continue to happen in the future”.
 Forecasting for a group of items is more accurate than the forecast for individuals.
 Forecasting accuracy increases as time horizon increases.
 18
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Here we explain and determine the forecasting sales value of BPML monthly sales for 2020
based on previous group data in 2019, where two of methods has been shown e.g- Simple
Moving average & Exponential Smoothing.

Simple Moving:
Technique that averages a number of recent actual values, updated as new values become
available.

Forecast, 2022
Sales, Forecast, 2022 (02 Forecast, 2022 (04
(03 Monthly
Month 2021 Monthly Moving Monthly Moving
Moving
(MT) Average) Average)
Average)
January 2801.646 - - -
February 1928.751 - - -
March 2318.164 2365.199 - -
April 2276.127 2123.458 2349.52 -
May 2336.46 2297.146 2174.35 2331.172
June 2686.484 2306.294 2310.25 2214.876
July 1634.903 2511.472 2433.02 2404.309
August 1535.115 2160.694 2219.28 2233.494
September 2377.046 1585.009 1952.17 2048.241
October 2178.48 1956.081 1849.02 2058.387
November 2646.918 2277.763 2030.21 1931.386
December 2394.821 2412.699 2400.81 2184.39

Table-03: Sales forecasting, 2022 calculation in BPML (Source: Primary)

Exponential Smoothing:
 19
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Weighted averaging method based on previous forecast plus a percentage (α) of the forecast
error.
Next forecast = Previous forecast + α (Actual – Previous forecast)
Where (Actual – Previous forecast) = forecast error, α is a percentage of the error.
Ft = Ft-- 7 α (At-- – Ft--)
Where,
Ft = Forecast for period t
Ft-- = Forecast for previous period
α = Smoothing constant
At-- = Actual demand or sales for the previous period.

Sales, 2021 Forecast,

Month Error
(MT) 2022
α= 0.2 & 1-α= 0.8
January 2801.646 - -
-
February 1928.751
2801.646 872.895
-
March 2318.164
2627.067 308.903
-
April 2276.127
2565.286 289.159
-
May 2336.46
2507.455 170.995
213.228
June 2686.484
2473.256 4
-
July 1634.903
2515.901 880.998
-
August 1535.115
2339.702 804.587
Septemb 198.261
2377.046
er 2178.784 7
 20
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

-
October 2178.48
2218.437 39.9566
Novemb 436.472
2646.918
er 2210.445 7
Decembe 97.0811
2394.821
r 2297.74 5

Table-04: Sales forecasting, 2022 calculation in BPML (Source: Primary)

Location Analysis

Location decisions represent a key part of the strategic planning process of virtually every
organization. And, although it might appear that location decisions are one-time problems
pertaining to new organizations, existing organizations often have a bigger stake in these kinds
of decisions than new organizations. The company is expanding its business in domestic as well
as foreign markets. To meet the rising demand and customer expectations, the company has been
taken an initiative to expand its plant to a new region. Growth has been the main criterion for the
company as the location options. To enhance the existing facilities the company has chosen 4
different locations in domestic arena.

When companies have multiple manufacturing facilities, they can organize operations in several
ways. One is to assign different product lines to different plants. Another is to assign different
market areas to different plants. And a third is to assign different processes to different plants.
Each strategy carries certain cost and managerial implications, as well as competitive advan-
tages. Using various information’s and techniques we have tried to evaluate the most possible lo-
cation for the BPML Company.

As per report by Daily Financial Express the demand for packaging paper (liner/media)
is around 5000 to 6000 tons per day (TPD), whereas local mills can produce only 1455
TPD. (https://thefinancialexpress.com.bd/trade/paper-industry-on-the-upswing-1531887884,
2018) To recover this lacking and also to export some I would like recommending to
the high-ups management of BG establishing a new plant at Mirsarai Economic Zone in
Chittagong since the BG has been got approval of Bepza in 2016 with 10000 acres of
land. (Star, 2016)

If the proposed plant will be established here may will get following advancement-
 21
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

 Chittagong is Economic capital in Bangladesh where most of product has been

delivered by BG. About 30% market volume here for packing materials. BG may
save millions of taka as transportation expense of FG.
 All about raw materials been imported from Chittagong Port where also millions
of taka has to pay on logistics support. It will also save if a new plant estab -
lished here.
 Also will be able to export easily in sea path.

That means market area plant strategy should have followed here. Here, plants are
designed to serve a particular geographic segment of a market. The operating costs of this
strategy are often times higher than those of product plants, but savings on shipping costs for
comparable products can be made. This strategy is useful when shipping costs are high due to
volume, weight, or other factors.

Also a Process Plant Strategy may be followed for avoiding extra cost. As instance, BG is
continuously import limestone from India & Vietnam to prepare CaCO 3 which is most important
raw materials for paper & paper products. If here established a CaCO 3 manufacturing plant from
lime at Mirasarai, Chittagong, will be saved millions of money. Here, different plants
concentrate on different aspects of a process in same zone then. Since, the strategy is most useful
when products have numerous components; separating the production of components results in
less confusion than if all the production was done in the same location.

Recommendations
 Since the technical talent workers are highly needed for its continuous productivity as
well as calibration & servicing of highly sophisticated machineries, so, its HR
departments should follow any retain process so that other competitors can’t be hired
them easily. For this it may start foreign trip with families, talent management exam with
highly benefitted rewards, engaging employee’s family members with company activities
etc.
 HR department can arrange job fair frequently and get chance to attend with practical
workshop for selected candidate with minimum pays so that won’t be increased overhead
cost.
 22
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

 Since, due to ongoing economic crisis, fuel shortage and inflation of currency, BPML is
being faced RM shortage problem and that is why production is decreasing. Avoiding it’s
in future it may inaugurate some projects with vital RM manufacturing and this is not so
difficult for BPML where having huge turnover and liquid money. And these project may
established at newly declared economic zone, at Mirosorai, Chittagong, will save excess
carrying cost.
 BPML sell out its product with mainly dealer centric, where may added some new
strategy of sales. It may with online shopping, selling little number of page with mini
pack instead of full ream and it should be from company to end user.
 BPML’s should added some highly ultra-modern technological machineries to safe from
its competitors, since maximum machineries are in before 1980’s.

After all, Bashundhara Group has been achieved its top ten position in Bangladesh through
achieving better productivity (machine, labor both) with lowest productivity cost for its good
strategic plan. The group has come a long way to achieve these goals by listening to their cus-
tomers' needs, drawing real lessons from previous projects, and innovating and collaborating.
Through large-scale investment projects, Bashundhara has made a beneficial contribution to eco-
nomic stability in financial and capital markets. Underlying all of the Group's activities is a com-
mon thread of change, flexibility and the promotion of closer ties with government, Citi Corpora-
tion and our customers. Most projects are success stories and Bashundhara paper is highest posi-
tion over the country. This fact alone justifies the group's confidence in its future.
 23
PROJECT WORK ON BASHUNDHARA PAPER MILLS LTD.

Reference
Bashundhara Group. (n.d.). Wikipedia. Retrieved from https://www.google.com/search?
q=how+many+people+works+in+Bashundhara+group&sxsrf=ALiCzsZ3m_PCuYnW38mFAEy4PISv
ZnTOjw
%3A1660277363741&ei=c9L1YtzlLMeXseMPvsaUWA&ved=0ahUKEwic6_mTt8D5AhXHS2wGHT4
jBQsQ4dUDCA4&uact=5&oq=how+many+people+works+in+Bashundhara+group

http://www.bpml.com/page/mission-values. (2020). Mission & Values. Dhaka: Website of BG.

https://thefinancialexpress.com.bd/trade/paper-industry-on-the-upswing-1531887884. (2018). Paper

industry on the upswing. Financial Express.

Paper, B. (2017-2018). Annual Report. Dhaka, Bangladesh: Bashundhra Group.

Production capacity of Bashundhara Paper increases to 143,000 MT annually. (2022). Dhaka: Dhaka
Tribune. Retrieved from https://archive.dhakatribune.com/business/2019/03/16/production-
capacity-of-bashundhara-paper-increases-to-143-000-mt-annually,
https://www.tbsnews.net/economy/stocks/bashundhara-paper-mills-stocks-post-58-price-rise-
eight-days-356572

Star, D. (2016). Bashundhara to build two economic zones.