Operations Management

Individual Assignment

Submitted By Lalit Joshi Roll# 2321

Operations Management

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 above chosen 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:

Flow Process Chart
S No. Details of Operations 500 metres

Operations Movement

Inspection

Delay

Storage

Time

Distance

1 2 3 4 5 6 7 8 9 10 11 12 13

Raw material received (In Ti ) Quality Check Q QC Conducted Raw material preparation Soaking, Dying & Washing WIP - step 4 Processing (1) Shredding, & Coating Processing (2) Frying / Baking, & Roasting Processing (3) Flavoring Wait for Cooling Check final product Packaging Inspection - Labeling, marking etc Transportation to warehouse (Out TO )

x x x x x x x x x x x x x

1 hr 1 hr 3 hrs 1 hr 2 hrs 2 hrs 2 hrs 1 hr 1 hr 1hr 5hr 1 hr

5km

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Operations Management

Activity Summary
Operations

No. of Steps 5

Time

Distance

11 hrs

Movement

5.5 km

Inspection

5 hrs

Delay

4 hrs

Storage

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 -Ti) 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 semiautomated 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 semiautomated, the process also includes manually driven steps

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Operations Management

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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Operations Management

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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Operations Management

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 institutional customers 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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Operations Management

Exercise 3 Determine the basis of competitiveness of your company, by contacting at least 5 customers (2 of which are satisfied, 2 who used to avail your company services/products in the past and 1 satisfied)

Answer
Customer Feedback Satisfied Customer Dis-satisfied Customer Products assorted with US Minimum order constraint brands highly famous amongst premium customers Understands client business Inconsistent rates, additional need delivery charges Past (discontinued) Customer Product range not suitable to business

No warehouse support for stocking customer specific packaging boxes Prompt response and on time No response on replacement Unable to meet big orders on delivery requests for damaged or time; suitable for small quantity expired consignments orders One stop solution for fun food Lack customer centricity, High Priced segment product & vending especially marketing team / dispensing machines Efficient technical support team Summarizing Competitive Advantage Basis Customer Feedback 1. Preferred supplier for B2B customers as shopping malls, entertainment multiplex, fun and sports 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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