C SHIVA CHARAN REDDY

MHR
19MBAR0648
OPERATIONS MANAGEMENT- ASSIGNMENT 1
ACTIVITY 1.1:
Identify 5 GOODS and 5 SERVICES Examples of the given below table.
Ans.
5 GOODS: Manufacturing is the production of products for use or sale, using labour and
machines, tools, and chemical or biological processing or formulation. It is the essence of
secondary industry. The term may refer to a range of human activity, from handicraft to high-
tech, but is most commonly applied to industrial design, in which raw materials from primary
industry are transformed into finished goods on a large scale.

S.NO INDUSTRY INPUT THROUGHPUT OUTPUT

1. Electronics Digital camera,
Installation of Mobiles,
touch screen, security apps, tablets,
sensors, manufacturing notebooks,
processors, and designing, laptops.
mother board. assembling the
parts and
labelling.
2. Automobile Body parts, Assembling the Cars, jeeps,
paints, sensors, body parts, auto-rickshaw,
Interior. stickering the motor cycles,
company logo’s, lorries.
body paints and
body mating.
3 Pharmaceuticals Scientist’s, raw Designing, Tablets, tonics,
material, drugs, mixing anti-biotics.
weight granulation and
machines, drying,
chemicals punching and
coating.
4 Textile’s Clothing Weaving the Trousers, t
material, cloth, stitching shirts, shots,
stitching accurate design belts, shirts.
machines, brand and size,
printer. printing the
brand logo’s
5. Chocolate Ingredients, Mixing all Chocolates,
flour and cocoa ingredients, cup-cakes,
powder, sugar, quality cakes.
milk and water, checking,
dry fruits. placing in cold
storage.
5 SERVICES: An industry made up of companies that primarily earn revenue through
providing intangible products and services. Service industry companies are involved in retail,
transport, distribution, food services, as well as other service-dominated businesses. Also
called service sector, tertiary sector of industry.

S. NO INDUSTRY INPUT THROUGHPUT OUTPUT

1. Hospitals or Infrastructure, Checking the Recovering
health care masks and PPE patients, from decease,
kits, ventilators,prescribing customer
oxygen tablets, satisfaction,
cylinders. consultation reputation of
fees. hospitals.
2. Air-lines Passenger, Ticket fare Passengers
infrastructure, payments, reaching the
air crew, ticket boarding the destination,
pricing structure passengers, food customer
and drinks. satisfaction.
3. Education Infrastructure, Teaching and Skills,
administration, learning. activities, new
teachers, learnings.
students,
transportation.
4. Courier’s Transportation, Delivery status, On time
courier agents, tracking the delivery,
monitors, GPS courier, courier customer
trackers. charges. satisfaction.
5. Marketing Marketing tracking Reaching the
agents, customer customer
monitors, data, mindset, mindset and
medium of advertising placing an order
marketing through media, of the product.
identifying
target
customers.

Hence these are the 5 goods and services along with their input, throughput and output.
Activity 1.3: From the given below table, measure separately a: HLF & b: HLA.
Ans.
Types of productivity:
1. Partial measure productivity
A partial productivity measure relates output to a single input, examples include labour
productivity(output per hour worked), capital productivity (output per unit of capital).
Formula: output/labour or output/capital or output/energy
Selling price of HLF= 10000*100= 10,00000
Selling price of HLA= 10000*200=20,00,000

Labour productivity: output/labour

HLF - Total units produced /total labour hours
= 10000/250 = 40
particulars HLF HLA
Labour hour 10000/250= 40 HLF per/hr 10000/200= 50 HLA per/hr
productivity(output/labour)
Machine productivity 10000/50 =200 per/hr 10000/100= 100 per/hr
(output/machine)
Material 1000000/200000= 5/- per 2000000/500000= 4
productivity(output/raw HLF per/HLA
material)
Capital 1000000/20000= 50 per HLF 2000000/40000= 50 per HLA
productivity(output/capital)
Other expense 1000000/2000= 500 2000000/10000= 200
productivity(output/other
expense)

2. Multifactor measure productivity:

particulars HLF HLA
Labour 1000000/(250*100)=40 2000000/(200*200)= 50
 productivity(output/lab
our rate*labour hour)
Cost productivity 1000000/ 2000000/
(output/cost of raw (200000+20000+2000=.4.5/- (50000+40000+10000)= 3.6/-
material*capital*other
expenses

3. Total measure productivity :

Total HLF HLA

productivity 1000000/(100*250+200000+2000 2000000/
(output/labour 0+2000 (200*200+500000+400000+100000)
rate*labour =4.04 = 3.39
hours+cost of
raw
material+capit
al
expenditure+ot
her expenses
cost

1.4 Provide solutions based upon your justifications.

Ans.
Standardized products are perfect substitutes. Examples of standardized products include
agricultural products (such as grain and milk), most mined minerals, and fish. A buyer of
wheat cannot tell who produced the bushels of wheat. Furthermore, the buyer does not care
because the grains are identical.
customized products are those products that are uniquely designed according to customer
specification. They may differ in shape, size, logo, image, colour etc. These products are
different from generally available product in the market.

Product 1
Standard
10,00,000*20= 2,00,00,000 sales
2,00,00,000*10/100 = 20,00,000 profit
20,00,000*4/100= 80,000 forecasting error
Profit-forecasting error
= 20,00,000-80,000
Customized
500000* 30= 1,50,00,000 sales
1,50,00,000*15/100= 22,50,000 profit
22,50,000*8/100= 1,80,000 forecasting error
Profit-forecasting error
= 22,50,000-1,80,000
 =19,20,000 = 20,70,000
19,20,000-0 (exp) 20,70,000-10,00,000(exp)
=19,20,000 = 10,70,000

Recommendations on Product 1:
From the above case we can invest 19,20,000 for standard products as the company is famous
for its milk products .where as in customized products we got profit of 10,70,000 but
according to me, we shouldn't invest so much amount for these customized products because
by investing this much amount into new products it may also get loss in business.
Product 2
Standard Customized
20,00,000*15= 3,00,00,000 sales 12,00,000*20= 2,40,00,000 sales
3,00,00,000*10/100= 30,00,000 profit 2,40,00,000*15/100= 36,00,000 profit
3,00,000*8/100= 2,40,000 forecasting error 36,00,000*6/100= 2,16,000 forecasting error
Profit - forecasting error Profit-forecasting error
=30,00,000-2,40,000 = 36,00,,000-2,16,000
=27,60,000 = 33,84,000
27,60,000-0(exp) 33,84,000-15,00,000(exp)
=27,60,000 = 18,84,000

Recommendations on product 2:
From the above case we can invest 27,60,000 in standard products but as in customized
products 18,84,000 is a huge amount where we should not take risk by investing that huge
amount into new products which are also called customized products.

Product 3
Standard Customized
30,00,000*20= 6,00,00,000 sales 20,00,000*25=5,00,00,000 sales
6,00,00,000*10/100= 60,00,000 profit 5,00,00,000*15/100= 75,00,000 profit
60,00,000*4/100= 2,40,000 forecasting error 75,00,000*6/100= 4,50,000 forecasting error
Profit-forecasting error Profit-forecasting error
=60,00,000-2,40,000 = 75,00,000-4,50,000
=57,60,000 =70,50,000
57,60,000-0(exp) 70,50,000- 20,00,000(exp)
= 57,60,000 = 50,50,000

Recommendations on product 3:
From the above case also there is risk of investing in customised products where as investing
57,60,000 in standard products is very much safe compared to invest in standard products.