1. Manufacturing Strategy Document
| Company Objective | Marketing Objective | Order Winner & Qualifier | Manufacturing Strategy | |
| Process Choice | Infrastructure | |||
| Achieving growth rate of 20%
Generating rural employment.
Adopting lean manufacturing techniques
Making better workplace.
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Establishing new market in Brazil
Positioning company as global brand
Entering the north Indian states in India.
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Meeting ISO standards of Product quality
Ontime delivery to meet seasonal cropping
Competitive pricing by cost optimization. |
Line Manufacturing
Adopting Economical Batch production (EBQ)
Inventory optimization by lean manufacturing
Adopting 5S techniques for better working environment
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Function support: Co-locating Marketing and Engineering at one place, co-locating procurement and manufacturing at one place
Manufacturing planning and control system: Push System
Quality assurance and controls: Proactive approach. ISO standards for product quality
Manufacturing systems engineering: Flexible manufacturing Clerical procedures: Shared communication. Salary/wage agreement: Fixed salaries Work structuring: Groups Organisation structure: Team
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2. Manufacturing Strategies
2(a)(i) Company /Market/Business background:
| Company | Finolex Plasson Industreis Pvt Ltd (FPIL) is an Indian-Israel joint venture company, which was established in year 1992. It is an agriculture equipment-based company, which is in Pune, Maharashtra, India.
They are a Micro-irrigation Components manufactures. (Finolex, 2020)
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| Product | They’re products are Divided into 5 different Categories.
1.              Drip Irrigation 2.              Sprinkler Irrigation 3.              Automation 4.              Protected Cultivation: 5.              Subsurface Drip.
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| Market | It’s an Indian based market, mainly concentrating on South India states of Andhra Pradesh, Telangana and Tamil Nadu & Maharashtra
Most of the business is covered with subsidy schemes of state Governments and Government of India.
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| Competitive Brands | Netafim, Jain, Captain, Signet, Rivuils, Skipper-Metzer.
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| Customer’s | Large, Medium and Small-Scale Farmers and Micro-Irrigation encouraging customers.
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| Values of sales | In FY 2023-24:Â INR 51561.79 Lacks. (InstaFinancials, 2021)
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Trends in the Micro Irrigation Sector:
In India, the adoption of micro-irrigation was analysed, and it was found that in addition to subsidies, household characteristics, farming situations and institutional factors play important roles in influencing farmers’ decisions (Nair & Thomas, 2023, p. 76). The data from Maharashtra shows that drip irrigation improves productivity, profitability, water use efficiency, and energy efficiency of crops like sugarcane, banana, and cotton (Shroff & Miglani, 2024, p. 487). Thus, FPIL’s growth will rely on not only on the manufacturing and financial capacity, but also design according to each crop, training of dealers, financial support and good field service.
2 (a)(ii) Development and Completion of justified and appropriate company objectives.
FPIL is well established company in term of product manufacturing, distribution and installation of MI system in India.
Its objectives are analyzed with reference to SWOT & PEST analysis.
SWOT analysis:
| Strength | Weakness |
| –Â Â Â Â Â Â Â FPIL is an established company with 30+ years of experience.
–       Expertise in Manufacturing and Quality Control (Khan et al., 2024, pp. 13–14) –       Wide distribution network across Mazor states in India. |
–Â Â Â Â Â Â Â Â Â Weak in R&D and Development of innovative products.
–Â Â Â Â Â Â Â Â Â Joint venture, partner is not in core business of Finolex Plassion. Technology transfer is not taking place –Â Â Â Â Â Â Â Â Â Manufacturing plant is in Pune and distributing the materials throughout India from single location resulting in high transportation cost. |
| Opportunities | Threats |
| –Â Â Â Â Â Expansion of business can be done globally with rich field experience.
–Â Â Â Â Â Throughout the world, water conservation awareness is growing. While coming to Agriculture, MI is water conservation technique (Shroff & Miglani, 2024, p. 487) –Â Â Â Â Â Concentrate more on Non-Subsidy Business. |
–         Government policies will fix the subsidy amount given to the company; it’s a government prone business. (Nair & Thomas, 2023, p. 76)
–Â Â Â Â Â Â Â Â Â Un healthy Competition with the local players. Turn over time for Skilled technicians –Â Â Â Â Â Â Â Â Â Regulatory and currency risks in new market (Nwabekee et al., 2024, p. 2923)
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 PEST Analysis:
| Â
Political  |
Economic | Social | Technology |
| Adoption of micro-irrigation is influenced by government incentives, energy connection requirements and state water laws. Energy subsidy and adjustment in Gujarat’s power connection impacted micro irrigation (Bahinipati & Viswanathan, 2019, p. 253). As a result, the reliance on state and federal level government projects by FPIL is a political risk Policy options, such as agricultural support policies, import policies, may impact market access | The main economic constraint is farmer “affordability” and “return on investment”. In Maharashtra, it has been observed that drip irrigation led to an increase in the yield, profitability, water-saving and power-saving of selected crops, but still, financial support is required for the marginal and small farmers due to the high upfront cost (Shroff & Miglani, 2024, p. 487). | Â Morale of the farmers, trust, farm size, water access and institutional support plays important role in social acceptance. (Nair and Thomas 2023 p 76) state that for a higher uptake of micro-irrigation, besides the subsidies, household and farm-level, and institutional factors play a role in farmer decisions. | Â Precision irrigation, automation and small-farm friendly systems are technological opportunities. (Suresh and Samuel ,2020,p.1163) recommend the development of micro-irrigation in India requires the development of an affordable systems, Hence, the products have to be made IoT enabled and automation ready, yet affordable for the farmers which is where FPIL strives to come up with. |
After analyzing through SWOT and PEST Lens:
Financial Objectives:
1.Over the next three years, 10.53% annual increase in growth is expected for FPIL, so the company can expand their business in Brazil by leveraging their domestic sales to move towards 20% increase.
FPIL needs to do things to ensure its profitability, in the sense of lowering logistics cost per hectare served by localising production in Brazil (selective) and by utilising local inputs.
Strategic Objectives:
FPIL needs to create a product and service model for micro irrigation to be localised in Brazil, through the design of the product for a given crop, partnerships with distributors, training of the installers and establishment of a Quality Assurance system based on ISO standards.
Reduce the dependence on subsidy driven sales in FPIL and move more direct business to farmers, dealers and non-subsidy projects to increase sales to payment realising time. By setting up a new plant in Brazil, this strategy is their hedge against political risks in India which pose the major problem for their businessÂ
2(a) (iii) Development of Marketing strategies, order winners and Manufacturing Objectives:
I) Marketing Strategy:
FPIL’s potential expansion of the Brazilian market should not only involve sales, but getting to know the market, how to deal with the regulations, the influence of the services and farmers’ confidence through partnerships with local distributors and installers. Partnerships and localisation allow companies to avoid the risk of entering into an international market and adapt their products and/or their services to the local context, as well as to better understand the characteristics of the local market in emerging economies (Nwabekee et al., 2024, p. 2920). Hence, FPIL must begin in a pilot region, a “pilot crop cluster”, compare the specifications of drip and sprinkler technologies to other world regions’ requirements for the crops, and then scale-up to trained dealers and service teams that are familiar with the crop and Brazilian requirements.
II) Order winners:
| Order Winners | Justification |
| Quality and reliability of the product.
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FPIL will compete with global and local irrigation system brands in Brazil. Long-lasting products, constant quality, and field performance should earn orders. ISO-based quality systems help manufacturers meet consumer demands for product quality and consistency. (Khan et al., 2024, p. 8) |
| Crop-season delivery dependability | Micro-irrigation is dependent on the seasons, subsidy approval and farming schedules. FPIL is important for farmers and field installers to get the products delivered on time to not miss out on the season. Then, an integrated push–pull plan assists them in managing predicted demand and confirmed orders and therefore enhance their service. (Reyes et al., 2024, p. 6255) |
| Product & service support in the local area in Brazil | Making the leap to Brazil should not be regarded as an easy export play. FPIL needs to localize its products and develop a network of distributors, installers and after sales service. Local partnerships, market research and localisation are key to successful expansion into emerging markets. (Nwabekee et al., 2024, p. 2920).
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III)Â Â Manufacturing objectives:
| Manufacturing Objectives | Justification |
| Raw Material & Finished Goods Stock Control
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FPIL should stock critical raw materials like HDPE, LDPE, PP, emitters, packaging materials etc and finished-goods stock should be limited to fast moving standard products. This will aid in the preparedness for the season while at the same time avoiding the build-up of slow-moving stock. (Reyes et al., 2024, p. 6255) |
| Develop local sourcing and supplier-development capability | The cost and logistics of operations should be minimized and responsiveness in Brazil should be improved by gradually localising selected raw materials and accessories (Nwabekee et al., 2024, p. 2920) |
| Hybrid Manufacturing | Forecast driven push should be used for standard high-volume products and pull for customised dripper spacing, filter combinations, automation kits, project specific orders (Reyes et al., 2024, p. 6253) |
2(b)(i) Design of Manufacturing strategy Elements (Assessment of options)
- Process Choice:
- Choice of Processes:
Option 1: Line type process:
The process can be continued for different range of prodcuts.one to be included for efficient use of equipment. Each batch is to be planned based on market demand and keeping the inventory optimization in view. Economical Batch Quantity (EBQ) to be worked out for different products (material management book)
Option 2: Batch production:
Products move from step to predetermined step until process is completed. Batch can be used appropriately for low to high volume of production.
Selected option: Line type Production (Rane & Sunnapwar, 2017, p.7)
 Role of Inventory:
Option 1: Raw Material inventory:
Raw materials used for manufacturing lateral lines and pipes stocks are maintained. These stocks can be optimized by ABC analysis.
Option 2: Work in process inventory:
semi-finished items stock on the shop floor is to be minimized.
Option 3: Finished goods Inventory:Â
Lateral lines, Finished Items are to be stocked as per the projections of the marketing.
Selected option: Raw material Inventory & Finished goods Inventory (Liu & Ma, 2020, pp. 1–2)
- Make or Buy:
Option 1 Buy: Make: Lateral lines, pipes are to be made in-house.
Option 2 Buy: Control valves, Filters, Controllers and other accessories are to be brought outside vendors.
Selected Option: Both Make and Buy. (Rosyidi et al., 2020, p. 2-4)
Capacity:
Option 1: Increasing the plant capacity in India by 20%
Option 2: Expanding the global business in Brazil.
Selected Option: Expanding business in Brazil. (Lucas & Paulo, 2022)
B) Infrastructure.
Function support
Option 1: Co-Locating Marketing and Engineering.
Each installation layout is different. So, marketing has to be intact with Engineering team to design suitable system.
Option 2: Co-Locating Procurement and Manufacturing.
Material planning will be done by manufacturing teams, and they can effectively co-ordinate on Just in Time (JIT) procurement of materials.
Selected Option: Co-Locating Marketing and Engineering and Co-Locating Procurement and Manufacturing. (Utama et al., 2022, p. 1)
Manufacturing Planning and Control System:
Option 1: Push strategy
Based on the market forecast, finished products are stocked and supplied. For seasonal products and standard products this strategy can be applied. Marketing will project the demand to cover targeted hectares.
Option 2: Pull strategy
If the products and customized and special products this strategy can be applied.
Selected Option: Hybrid Strategy (Reyes et al., 2024, pp. 6253–6255)
Quality Assurance and Controls
Quality Control:
Option 1: Reactive approach: Products are tested and based on the results changes are done.
Option 2: Proactive approach: Each process is monitored based on the input parameters and Product is checking the required quality parameters. To accomplish this ISO 9000 procedure is adopted.
Selected Option: Proactive approach. (Khan et al., 2024, pp. 7–8)
Quality assurance:
Option 1: Following Bereau of Indian Standards for the Products and Quality systems ISO 9000, ISO 14000.
Option 2: Following International organization for standardization (ISO) and Quality Systems ISO 9000, ISO 14000
Selected Option: Following International organization for standardization (ISO) and Quality Systems ISO 9000, ISO 14000 (Khan et al., 2024, pp. 14)
The following standards can be followed for the products: (ISO – Agricultural Machinery, 2025)
| S. No | Product | Standard |
| 1 | Driplines | ISO 9261:2004 |
| 2 | PVC Pipes | ISO16422:2014 |
| 3 | HDPE Pipes | ISO4427-5:2019 |
| 4 | Sprinklers | ISO 1588-6: 2012 |
| 5 | Control valves | ISO 9635-1 to 5: 2014 |
| 6 | Filters | ISO 18471: 2015 |
 Manufacturing Systems Engineering
Option 1: Continuous Manufacturing
Manufacturing is done continuously to produce high volumes. High level of automation and process control are applied.
Option 2: Flexible Manufacturing based on productivity. Care is taken to see that quality parameters are met in this option.
Selected option: Fixed salaries. In case of FPIL, all production lines are automatic and computer controlled. Human interventions are less hence fixed wages are preferable. (Bun & Huberts, 2018, pp. 1–2)
Work structuring
Option 1: Assigning tasks to groups
Tasks of the project are assigned to groups and group leaders, and team will be responsible for accomplishing the projects / tasks.
Option 2: Individual tasks
Tasks are assigned to individuals based on expertise of the people.
Selected Option: Option 1. (RamÃrez-Zavala et al., 2024, pp. 1–2)
Organization Structure
Option 1: Team based.
Each team will take responsibility for the function of the organization. Designs team takes care of the development of new products and processes, manufacturing team looks after production etc.
Option 2: Flat organization structure
It is best suited for startups. Decisions will be made faster and creative ideas will be generated.
Selected Option: Team based structure. As FPIL is establishing new plant with expertise in Indian operations, it is recommended to go with Team based structure.
(RamÃrez-Zavala et al., 2024, pp. 1–2)
2(b)(ii) Desing of Manufacturing strategy Element (Justified Selections) Manufacturing strategy Design:
| S.NO | Proposed Selection | Â Justification |
| 1.Choice of process | Line type Production | This process involves producing one product type without interruption to process. That is why this process is recommended. Each batch is size is calculate based Economical Batch Quantity (EBQ) and market projections. (Rane & Sunnapwar, 2017, p.7) |
| 2.Role of Inventory | Raw material and Finished goods inventory | Raw material inventory is used for initial manufacturing of the lateral lines and pipes and to be stocked as per ABC analysis. As per forecast for the future demand, finished goods inventory is to be maintained to meet seasonal requirements. Work in process can be maintained to minimum. (Liu & Ma, 2020, pp. 1–2) |
| 3.Make or buy | Both Make or Buy | A Micro Irrigation company should balance its both Make or Buy factors. The manufacturing of lateral and pipes, etc will come under Make factor. Whereas control valves and filters will come under Buy factor. Both are followed based on requirements. (Rosyidi et al., 2020, p. 2-4) |
| 4.Capacity | Expanding business in Brazil. | Brazil is having similar crops comparing to India. Climatic condition Will also match India sub-continent. Brazil is 7th largest MI industry in world, which gives FIPL a huge advantage (Lucas & Paulo, 2022). This move will de risk the business from potential political risks which FPIL face in most of its business operations in india and improve its margins as sales are cash & carry to farmer in brazil |
| 5.Function support | Co-locating Marketing and Engineering in one place. Procurement and production in one place. | Marketing and Engineering must go hand in hand for development of products and providing customized solutions to each customer. Procurement and production can be in one place to see that timely providing the materials to production. (Utama et al., 2022, p. 1) |
| 6.Manufacture planning and Control systems | Hybrid Strategy | It’s based on Market Forecast; Finished Product are stocked and supplied. MI Systems are supplied based on seasonal requirements. Finished items are to be stocked and without delay to the customers. (Reyes et al., 2024, pp. 6253–6255) |
| 7.Quality assurance and control | Proactive Approach and Follow ISO standards | Every process will be monitored based on input parameters. Products will be checked and then supplied. Following ISO and Quality systems, will help them reach quality standards for the processes and Improve Product Performance. (Khan et al., 2024, pp. 7–8) |
| 8. Manufacture systems Engineering | Flexible Manufacturing | FPIL produces different products based on flowrates and spacing between emitters. So flexible manufacturing is more suitable. (Koren et al., 2018, pp. 121–122) |
| 9.Clerical procedures | Shared Communication | This mode of communication will help in team building. New Product development will need shared communication for effectiveness. (Mashiloane et al., 2018, p. 1) |
| 10.Salary/Wage agreement. | Fixed Salaries | Mostly in FIPL, all production lines are automatic and computer operated. By this method they can assess spending every year. (Bun & Huberts, 2018, pp. 1–2).Incentivized pay is better for marketing or other functions. For manufacturing fixed monthly salaries with annual increments is best method |
| 11.Work structuring | Assigning tasks to groups. | Cross- functional teams will bring up new and innovative ideas. It will make difficult tasks easy to handle. (RamÃrez-Zavala et al., 2024, pp. 1–2) |
| 12.Organisation structure | Team based structure. | Team based structure can handle field (application) issues by coordinating with Marketing. Engineering and production. (RamÃrez-Zavala et al., 2024, pp. 1–2) |
 2(c) Depth and Breadth of relevant comments in comparing the proposed manufacturing strategy with the deduced existing manufacturing strategy.
Table below represents the present manufacturing strategies FIPL is following at Indian plant strategies to be followed at Brazilin plant. These are worked out considering the conditions in Brazil and targeted improvements to be done at new plant:
| S.NO | Strategy Elements | Existing Element | Proposed strategy element |
| 1 | Choice of Process | Line type process | Line type process |
| 2 | Roll of Inventory | Raw material Inventory | Raw material inventory and finished goods Inventory |
| 3 | Make or buy | Make and buy | Make and buy |
| 4 | Capacity | Add to existing plant | Add new plant at Brazil |
| 5 | Function Report | Marketing one place. Engineering & procurement in second location, and production third location | Marketing and engineering in one place, Procurement and Production on second location |
| 6 | Manufacturing planning and Control systems | Pull strategy | Hybrid strategy (both pull & push) |
| 7 | Quality assurance and control | Reactive quality approach.                     BIS certified products | Proactive quality approach.
ISO certified products. |
| 8 | Manufacturing Systems Engineering | Flexible Manufacturing | Flexible Manufacturing |
| 9 | Clerical procedures | Clerical and confidential | Digital and shared on need based |
| 10 | Salary /wage management | Productivity linked wages | Fixed wages |
| 11 | Work structure | Individual tasks | Group tasks |
| 12 | Organisational structure | Flat | Team |
Above recommendations can be reviewed periodically and any improvements can be made based on discussions with cross-functional teams.
2(d)(i) Recommendations for implementing the proposed manufacturing strategy
For the standard, high volume products like pipelines and laterals, the Brazil facility should have line-type productions because line-type production systems are suitable for repetitive production, higher production volume, efficient utilization and reduction of cycle-time losses (Rane & Sunnapwar, 2017, pages 355-356).The system should also be flexible as there are different types of micro-irrigation products available for various crops, flows and project requirement. Reconfigurable manufacturing can help with the responsiveness to changes in product demands and product variety (Koren et al., 2018, pp. 121–122)
FPIL needs to have a hybrid model of push and pull planning system. The logic used for seasonal products should be push/MRP and for customized products like dripper spacing, combinations of filters, automation kits and confirmed orders of projects, pull/JIT should be used. Push systems are associated with forecast demand and pull systems are associated with firm orders and JIT and integrated planning can accommodate both firm orders and forecast demand (Reyes et al., 2024, pp. 6253–6255).
The ABC classification of inventory, and the integration of procurement-production planning should be used for managing inventory. Critical raw materials like HDPE, LDPE, PP, emitters, packaging should be stocked, there should be limited stocks of finished goods of fast-moving standard products. Based on cost, criticality and lead time, ABC analysis is a technique that can be used to help inventory management. Integrated procurement-production planning is a connecting of procurement and production planning decisions, which is a raw material, WIP and finished goods decision (Utama et al., 2022, p. 1).
2(d)(ii) Recommendations for communication issues:
The main communication issues will be between the India side and Brazil side. Since each irrigation project is different and the project depends on crop, farm layout, water source, pressure, farmer’s budget, marketing and engineering should be closely allied. The cross-functional integration enhances the collaboration of various functions in product development (RamÃrez, 2019, pp. 1–2).
Common ERP/dashboard for production and procurement to share supplier lead times, raw material level, production plans, and quality issues. The information sharing is positively correlated with supply-chain performance in manufacturing companies (Mashiloane et al., 2018, pp. 1, 10). Dealer to installer communication should also be standardized, in the form of manuals, training videos, WhatsApp support groups and installation instructions in local language.
KPIs Table:
This table helps in assisting with the strategy proposed and KPIs that are used to monitor progress.
| Area | KPI/Measure |
| Â Market Growth | Â Brazil sales contribution towards 20% growth |
| Â Delivery | % of On-time delivery for seasonal products |
| Â Planning | Forecast accuracy for both push and pull orders (Planned vs Achieved in Ha) |
| Â Inventory | Â ABC based raw material & finished goods inventory management |
| Â Quality | Â Quality Rejection rate, complaints, first pass yield and ISO audit findings. |
| Â Flexibility | Â Changeover time and ability to produce different products |
| Â Supplier Development | Â No of approved Brazil Vendors |
| Â Communication | Â ERP/dashboard updates and closure rate |
| Â Team Performance | Â Projects Completed |
| Â Cost | Manufacturing cost/ha served |
2(e) Strategy adaptation:
It is recommended to review the strategy every quarter and respond to the changes in the demand for the market, crop seasons, suppliers’ reliability and customer demands. For the primary product if its demand is predictable then the production of the same product can be increased in FPIL production. If there is a need to expand capacity because more customized projects are added, use pulling to increase the capacity. Within the hybrid approach, a variety of orders can be a mix of forecast and firm orders which can be managed simultaneously (Reyes et al., 2024, pp. 6253–6255).
A reversion of make vs. buy is needed. Core products take priority then – to remain in-house; accessories follow – you can be located outside of the business on a ‘cost, quality and delivery’ basis, if that is okay for the business. The make or buy will influence the decisions to be taken based on the following factors that have been identified such as cost, capacity, quality and the supplier capacity (Rosyidi et al., 2020, p. 2–4). The information flow and the creation of ideas and solving problems in manufacturing and cross functional teams has to be a part of the work teams through which it can be achieved, for continuous improvement as Ramirez-Zavala (2024 p. 142 ,1–2).
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