Lalit Joshi.2321

8/2/2019 Lalit Joshi.2321

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Operations Management

Individual Assignment

Submitted By

Lalit Joshi

Roll# 2321


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Lalit Joshi Roll # 2321 Page 2 of 7

Exercise 1

Draw a flow chart of any function in your organization (Marketing, operations, finance,accounting, human resource and information system).

Use special symbols to draw the flow chart for the above question.

Analyze the flow chart drawn above using basic question (How, What, when, where,and who).

Suggest improvements for increasing the efficiency of effectiveness of the abovechosen function.

Answer

The company considered is manufacturer of salty snacks. The portfolio consists of potato

wafers, puffed corns, flavored popcorns, crispy chunky nuts, tortilla chips, baked wafers etc

(almost 15-20 segments). The flow chart of operations includes activity from receipt of raw

material to production of finished goods (packages put in shipping boxes)

The operations process is illustrated in the flow-chart as below:

S No. Details of Operations

1 Raw material received (In Ti ) x 1 hr500 metr

2 Quality Check Q x 1 hr

3 QC Conducted x 3 hrs

4Raw material preparation

Soaking, Dying & Washing x 1 hr

5 WIP - step 4 x 2 hrs

6Processing (1) Shredding, &

Coating x 2 hrs

7Processing (2) Frying / Baking, &

Roasting x 2 hrs

8 Processing (3) Flavoring x 1 hr

9 Wait for Cooling x 1 hr

10 Check final product x 1hr

11 Packaging x5hr

12 Inspection - Labeling, marking etc

x

1 hr

13Transportation to warehouse

(Out TO ) x5km

Storage Time DistanFlow Process Chart Operations Movement Inspection Delay


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No. of

StepsTime Distance

Operations 5 11 hrs

Movement 2 5.5 km

Inspection 3 5 hrs

Delay 3 4 hrs

Storage 0

Activity Summary

Analysis of existing process flow chart

As detailed in the above flow process chart the tasks pertaining to processing and

packaging are spread across series of continuous steps. The process starts with the

delivery of raw material at plant (Time in -T i) and ends with dispatch of finished

packaged goods to warehouse (Time out -To)

Below are in between steps to answer basic & important questions:

How the entire process is executed by using limited resources. Total of 15

people are involved in the operations process. The manufacturing unit is semi-automated and raw material is sourced from US, South Africa and China

What the flow chart illustrates details of manufacturing process of snacks as

potato wafers, puffed corns, flavored popcorns, crispy chunky nuts, tortilla chips,

baked wafers etc (almost 15-20 segments); many other products are

manufactured as per customer demand

When manufacturing is a continuous process but quantity of production varies

with the market demand; the company has B2B companies as regular customers

such as entertainment franchise groups cinemas, clubs, hotels, water park,

etc.

Where the manufacturing unit is a medium sized factory located near Jebel Ali

port. All production processes are executed in a single production line.

Who the entire manufacturing process is executed by a team of 15 people,

most of the team is semi-skilled; while some part of the process are semi-

automated, the process also includes manually driven steps


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Suggested areas of improvement to increase efficiency or effectiveness in

production

Reduce WIP time steps as raw material preparation (soaking, washing, etc.) involve in

between work in progress time. This increases the overall production time. Hence,

during WIP time other process activity can be executed simultaneously. This would

improve resource utilization and thereby improving production efficiency.

Revise Inspection procedure in a total manufacturing time of 20hrs, 25% of the time is

spent in conducting inspection. While the number of inspection checks is appropriate,

formulate the current process to reduce the overall time spent on inspection procedure.

Utilize Delay Time delay time of one batch process to be utilized for other batch WIP or

set up.


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Exercise 2

Specify where your organization fits in the Volume Variety Matrix. Explain.

Evaluate the competences within the organization and determine the competences gaps

if any

Answer

1. Illustrating Volume-Variety Matrix

The organization offers snack products across 15-20 segments. The demand for each

segment fluctuates through the year as it is influenced by season, holidays, etc. For each of

the segment demand is not uniform and it is difficult to forecast demand by segments,

therefore, single production line is used to manufacture snack products across segments.

The manufacturing line falls under the category of batch processing. Below is the

representation of Volume-Variety matrix:

Volume Variety Matrix


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The production set up for the organization is characterized as Batch processing because of the

following reasons:

Multiple products with low to moderate volume Moderate variable cost

Moderate capital investment

Labor content and skill - moderate

Organizations Competency

Following are the key competencies for the company providing an edge over the

competition:

Production process flexible to accommodate sudden change in customers demand

with minimal impact on costs and business profitability

Product offering across 15-20 segments helps cater widespread base of institutionalcustomers

One stop solution for customers as provides both product and vending /dispensing

machines that are difficult to procure (as part of marketing strategy company leases

and sells various machines required by customers for display and selling at serving

outlet along with salty snacks)

Provides after sales service and ongoing technical support on machines

Following are the competency gaps in current scenario:

Production capacity equipped to handle small scale orders

High cost disadvantage compared to large scale competition manufacturers High cycle time and lead time due to in between set up time required for running

multiple batches

High work in process time involved in raw material preparation and set up activities

Throughput imbalance due to varying process leading to low direct labor utilization


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Exercise 3

Determine the basis of competitiveness of your company, by contacting at least 5customers (2 of which are satisfied, 2 who used to avail your company services/productsin the past and 1 satisfied)

Answer

Customer Feedback

Satisfied Customer Dis-satisfied Customer Past (discontinued) CustomerProducts assorted with USbrands highly famousamongst premium customers

Minimum order constraint Product range not suitable tobusiness

Understands client businessneed

Inconsistent rates, additionaldelivery charges

No warehouse support forstocking customer specificpackaging boxes

Prompt response and on timedelivery

No response on replacementrequests for damaged orexpired consignments

Unable to meet big orders ontime; suitable for small quantityorders

One stop solution for fun foodsegment product & vending

/ dispensing machines

Lack customer centricity,especially marketing team

High Priced

Efficient technical supportteam

Summarizing Competitive Advantage Basis Customer Feedback

1. Preferred supplier for B2B customers as shopping malls, entertainment multiplex, fun andsports joints, cafeterias, etc due to its wide variety offering in fun food snacks

2. Product offering enhanced by supplying snacks assorted with flavored complements

3. Qualifies as one stop solution offering both product and concession equipments as cheese

dispenser, popcorn machine, slush machine, fryer, popping machines, etc. which are

required by B2B customers for displaying, stocking and serving as a fresh plate at the outlet

4. Efficient technical support for ongoing customers

5. Responsive to customer requirements; for e.g. scheduling on time delivery on short notice;

supporting delivery even during holidays to meet peak business hours of customers

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