CASE STUDY 1: Delay leads to delay

ANS (A)
 The purpose of production management is to produce the right amount of goods and
services of the quality, with the minimum cost and at the right time.
 Project management is the process of leading the work of a team to achieve goals and
meet success criteria at a specified time.
 Aligning the organisation’s structure and resources with the project strategy and the
ultimate objective. Project Management is important here as it can align the tasks in
such a way that the project connects with the strategic alignment of the customer too.
 Project management helps in forming the perfect and clear project plan for achieving
the strategic goals.
 Project management reduces project costs by optimized use of resources, improving
efficiency, and decreasing risks.
 Efficiency and timeliness is an important objective of production management and in
this case due to the many delays the project cost had spiraled up to ₹50 billion and
which is likely go up further.
 Production activities like these generates different job opportunities in the country.
Due to the poor production management lots of potential job opportunities were lost.

ANS (B)
 Since the land acquisition has yet not been completed and it is pending since years
and given the fact, that project cost is spiralling at a very fast rate I will firstly focus
on completing the land acquisition.
 The next step would be to clear out all uncertainties and come to a conclusion
regarding raw material and finalise a proper and viable deal.
 Once that is done, my next step would be laying out a complete plan of action with a
proper timeline so as to allocate and deploy resources as and when required.

ANS (C)
A lot of factors lead up to a project suffering from time and cost overruns such as:
 Financial problems
 Poorly defined project scope
 Under-estimation of project cost by consultants
 Poor inspection/supervision of projects by consultants
 Improper Risk and Uncertainty Management
 CASE STUDY 2: Just in Time in Action

ANS (A)
 Yes, I think the strategy should work.
 As mentioned, the market for Women’s jeans is growing rapidly which means high
demand which will lead to high supply and when supply is high, the audience usually
gets choosy and would want a product just according to what they want.
 Given the strategy which NaaR is applying, it is great strategy because it gives its
audience the liberty to customise jeans according to them without any major time
buffer.
 Shopping for jeans is a tiring experience and if you get to do the same according to
your preference in a reasonable price, it is exactly what you look for.
 Also the fact that the jeans are made in Ahmedabad and the pricing of cloth material
in Ahmedabad is relatively cheaper and hence this is also cost effect for NaaR.
 Retailers play a very important role in this business strategy since they have to
provide the information regarding the size, design, the type of fabric, etc. desired by
the customer and sending the correct information to the manufacturer for
manufacturing the same.
 Retailers are also helpful as they play a key role for publicity of the concept of JIT
jeans.

ANS (B)
 Given the right quality and if the customers are getting what they demand, I don’t see
any reason why the customers won’t wait for 10 days. Even a custom made jeans
from a tailor sometimes takes more than 10 days to get ready.
 But still, to reduce the time gap, more warehousing and manufacturing industries can
be set up in prime hotspot locations to reduce the buffer and waiting time so as to
reduce the delivery time.
 If some customers have an issue with the 10 day guaranteed delivery, NaaR can
introduce a priority system where, having paid extra will get you your delivery faster
than normal. This will give them an advantage over their competitors.

ANS (C)
A robust supply chain is necessary in context of NaaR Inc. because:
 Internet Connection: A fast and reliable internet connect is a very important
factor. In case of an interrupt, NaaR should be capable enough of to store the
data given by the customers to be used at a later stage.
 Quality Control: NaaR should have a quality check throughout the supply
from raw material, manufacturing to delivery, maintain quality is a must.
 Raw Material Supplier: NaaR should be in contact and in touch with multiple
raw material supplier so as to cope up with the high demands of the customer
and to provide a smooth experience to them.
  Logistics provider: NaaR should have connecting with multiple warehousing
facilitators as well as transport providers so as to cope up with the high
demands of the customers and to provide them a smooth experience.
 Policy check: NaaR’s rules, regulations and policies should be stringent as
well as give customers a chance to be satisfied if they are right. The policies
should not be extremely customer driven and neither should they be too
stringent.

CASE STUDY 3: Stock the Stock

ANS

 Inventory rotation problem of Hawkins Supply Company can be solved if inventory

management is done cost effectively.
 We have to plan for the future to so that the supplies can be used prior to a stated
expiration date.
 The older inventory items have to be used first so that before expiration date the
inventories are sold.
 The goal can be achieved through JIT management of inventories.
 Alternative approaches through which the problem can be resolved include automated
processes, lean management and proper scheduling.
 Through the JIT management, the firm would realize greater changes in the
management of the inventory.