Operations Management

September 2021 Examination

1. List and explain in brief the various types of plant layout concepts in operations
management, highlighting the objective, considerations of a good layout design. Give
examples on where each of these types can be employed respectively. (10 Marks)

Ans 1.

Introduction

Operational management is considered an administrative business technique that assists in

developing a high level of efficiency in a company’s entire operations. It applies very well in the
manufacturing business. The function of operation management is to reshape and manage several
processes involved in producing services and products. Furthermore, operational management is
organizing, planning, controlling and

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2. Discuss the various inventory control/classification techniques prevalent in the industry,

mentioning the basis of each classification. Discuss any three of these techniques as
applicable to an organization in the Retail sector like Big Bazaar or D mart for effective
management of their inventories (you can assume inventories of your choice to explain. (10
Marks)

Ans 2.

Introduction

Classification is defined as a technique where we categorize information into a given number of

classes. The primary goal of a classification issue is to identify the category under where new
data will fall under. However, with managing functions of inventory management, stock control,
also known as inventory management, can help in the optimization and

3. NM Ltd, a leading corporate in India in FMCG has decided to diversify into Foods &
Beverages and get in the manufacturing of a flavoured soft drink and a health drink. The
company would like to have a major presence with a pan India distribution network.

a. Assuming that the business idea would have a very encouraging response, suggest a
suitable plant location to setup the beverage manufacturing. Give reasons for the same. (5
Marks)

Ans 3a.
Introduction

Beverages are immensely getting popular in today’s fast-moving culture. We saw a massive
demand for a healthy beverage like soft drinks around the entire world. Similarly, the Indian
food and beverage manufacturing industry may practice rapid expansion in the future. We also
witnessed the plastic ban, which made many people increased their health consciousness.

b. Defining the concept of aggregate plan for operational capacity management, which
strategy (Level or Chase) do you think would be best applicable for the company? (5
Marks)

Ans 3b.

Introduction

Aggregate capacity management is usually a three-step process. It measures aggregate demand

and capacity levels for the planning period, identifies alternative intensity plans in case of
demand fluctuations, and choosing an appropriate capacity plan. On the other hand, operations
managers are typically faced with a necessity that is unlikely to be specific or constant. It will
have some idea of