Case
Teaching Notes
Supplementary Resources
Abstract
Michael, Managing Partner of Meenachil Konkretes, a small rural unit in Kerala, India, that manufactured concrete blocks, found that the plant did not achieve full production because of absenteeism among his workers. As they divided the earnings equally among themselves, they rejected Michael's suggestion to increase the team size or induct others, fearing a dent in their earnings. He had to find a way to persuade them to change their work practice.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Video 1. Meenachil Konkretes Production Process
Source: Photograph taken by case writer
Assemble the Mould→ | Tighten the Mould→ | Grease the inside of the Mould ↓ |
Inspect and make sure that steel frame is equidistant from the walls of the Mould ↓ | ←Insert Steel Frame into Mould | ←Prepare Steel Frame (Steel rods will have been straightened and cut into right sizes in advance) |
Prepare Concrete Mixture with a special consistency→ | Pour Mixture into Mould→ | Get Air Bubbles out ↓ |
Pour Liquid Cement on Top of Mixture in Mould ↓ | ← Leave it for 3 hours to Dry | ← Level Mixture in Mould |
Smooth the Surface with a Special Trowel → | Leave Mixture in Mould overnight → | Unscrew Walls of the Mould the following morning ↓ |
Keep Frame Immersed for 7Days ↓ | ←Gently Lower Frame into Tank of Water | ← Smooth Sharp Edges of Concrete Frame |
Clean and Apply Primer to Steel Rods that Would Form the Grill for Windows → | Once Dry, Fit Steel Rods (in Window Frames) Hinges (Both Window and Door Frames)→ | Transfer Frames to the Stock Yard— |
Source: Case writer’s observation
Inputs | Rs |
Cement (1 bag) | 350 |
Stone chips 6mm, 0.18 cubic metre | 143 |
Stone chips 12mm, 0.20 cubic metre | 154 |
Sand/crusher dust, 0.14 cubic metre | 160 |
Labour (at Rs 11 per stroke) | 88 |
Power | 3 |
Tax | 19 |
Loading (blocks onto customer trucks) * | 35 |
Breakage/waste | 15 |
Interest payments | 7.50 |
Admin expenses | 20.50 |
Maintenance of plant & machinery | 6 |
Sundry expenses | 17 |
Total ( for approximately 8 strokes) | 1018 |
Inventory holding costs (3 weeks) not calculated | |
Dues from customers – not included |
* The customer price of blocks included loading; the workers’ “piece rate”, however, did not include it. Therefore they were given extra money for loading. The charges varied from55 paise to 110 paise per block based on its size and weight.
Source: Records of Meenachil Konkretes
2012 Month | Week | Workers per day | Cement bags used per day | Wages for production (Rs, per worker per day) | Extra Earnings (Rs, per worker per day) | Total earnings (Rs, per worker per day) |
January | Week1 | 10.67 | 50.40 | 416.06 | 195.68 | 611.75 |
2 | 11.00 | 50.58 | 387.04 | 211.41 | 598.46 | |
3 | 10.33 | 46.83 | 398.94 | 198.58 | 597.52 | |
4 | 10.67 | 39.17 | 323.05 | 174.51 | 497.56 | |
5 | 10.00 | 46.29 | 379.64 | 139.66 | 519.30 | |
February | Week 1 | 10.25 | 46.75 | 401.37 | 215.44 | 616.71 |
2 | 10.00 | 47.58 | 418.70 | 272.15 | 690.85 | |
3 | 11.00 | 47.00 | 376.00 | 182.67 | 558.67 | |
4 | 9.50 | 44.67 | 413.79 | 116.89 | 530.68 | |
5 | 10.67 | 52.33 | 431.59 | 166.69 | 598.28 | |
March | Week 1 | 10.67 | 52.33 | 431.59 | 127.54 | 559.13 |
2 | 11.00 | 53.00 | 411.65 | 188.74 | 600.40 | |
3 | 10.50 | 47.58 | 398.77 | 176.48 | 575.25 | |
4 | 11.00 | 50.58 | 404.64 | 148.40 | 553.05 | |
5 | 10.83 | 48.00 | 393.03 | 187.46 | 577.49 | |
April | Week 1 | 10.50 | 47.00 | 393.90 | 134.50 | 528.40 |
2 | 8.80 | 49.60 | 496.00 | 138.66 | 634.66 | |
3 | 8.83 | 40.58 | 404.42 | 244.84 | 649.26 | |
4 | 9.50 | 50.00 | 467.09 | 126.95 | 579.98 | |
Jan-April | 10.30 | 47.91 | 407.75 | 176.17 | 583.02 |
Note: Wages for production @ Rs. 11 per stroke; Extra earnings from unloading and loading
Month | Workers per day | Average no. of bags of cement used per day | Wages for production (Rs, per worker per day) | Extra Earnings (Rs, per worker per day) | Average daily earnings per worker |
January | 10.53 | 46.75 | 380.95 | 183.97 | 564.92 |
February | 10.28 | 47.67 | 408.29 | 190.77 | 599.04 |
March | 10.80 | 50.30 | 407.94 | 165.72 | 573.06 |
April | 9.41 | 46.80 | 440.35 | 161.24 | 598.08 |
Jan to April | 10.25 | 47.88 | 409.38 | 175.43 | 583.78 |
Note: The minor discrepancies in the totals are due to rounding off of decimal points.
Source: Records of Meenachil Konkretes
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved