11-OCT-2021

ASSIGNMENT 1 ON SCHEDULING & OPERATIONS

MANAGEMENT (SUPPLY CHAIN)

PRESENTED BY: GROUP 11

PGPMEX APR_A’21
JOSH, SAIKRISHNA, SYED, AKHILA, BHARAT
QUESTION 1
A set of four jobs A, B, C & D have the machining time of 5, 25, 20, and 10 hours and are due at 20, 35,
40, and 25 hours respectively. The four priority rules to be assessed for deciding the scheduling are
recommended to be EDD, SPT, LPT, and CR.
REFER THE EXCEL SHEET ‘Q1’ FOR CALCULATIONS
Based on the data provided, the Flow Time, Job Lateness and Critical Ratio (CR) is calculated as shown
below. Accordingly, the priority rules, rank ordering of jobs has been defined.

1 A – Compute and analyze the set of critical performance metrics for each scheduling process
EDD RULE: A – D – B – C
Avg.Completion Time 30 Days
Utilization Metric 50%

Avg.no of jobs in the System 2 Jobs

Avg. Job Lateness 6.25 Days

SPT RULE: A – D – C – B
Avg.Completion Time 28.75 Days
Utilization Metric 52%
Avg.no of jobs in the System 1.92 Jobs
Avg. Job Lateness 6.25 Days

LPT RULE: B – C – D – A
Avg.Completion Time 46.25 Days
Utilization Metric 32%
Avg.no of jobs in the System 3.08 Jobs
Avg. Job Lateness 18.75 Days
CR RULE: B – C – D – A
Avg.Completion Time 46.25 Days
Utilization Metric 32%
Avg.no of jobs in the System 3.08 Jobs
Avg. Job Lateness 18.75 Days

1 B. Identify the best priority rule. Support your answer with justifications.

From the table, it is evident that SPT should be the sequencing rule adopted as it has the best results (all
four) when compared to other priority rules.
▪ The average completion time for SPT is 28.75 days, which is lower when compared with the
remaining rules.
▪ The utilization for SPT is 52% which is higher when compared with other rules. Increased
utilizations tell us that the organization resources are utilized effectively with higher productivity
levels.
▪ The average number of jobs in system for SPT is 1.91 which is lesser when compared with other
jobs. Lower the waiting time of jobs in queue, improves the overall turnaround time, thereby
making this a critical factor that needs to be considered.
▪ The average lateness for SPT is only 6.25 days. Lesser the average lateness, the faster will be the
turnaround time for customer, which results in improved customer satisfaction.
The above points make SPT as the best sequencing rule to be adopted.
1 C. Comment on the outcomes from other than the best priority rules.
EDD RULE: A – D – B – C
 ▪ The average completion time for EDD is 30 days, which is approximately 2 days higher when
compared with SPT and hence has good avg. job completion time.
▪ The utilization metric for EDD is 50% and is 2% lesser when compared with SPT. From this, we
can understand that EDD has a better resource utilization metric when compared with LPT and
CR rules.
▪ The average number of jobs in system for EDD is 2, means that 2 jobs are in queue to be
completed. Lower the waiting time of jobs in queue, improves the overall turnaround time,
thereby making this a critical factor that needs to be considered.
▪ The average lateness for EDD is only 6.25 days which is similar to SPT. Lesser the average
lateness, the faster will be the turnaround time for customer, which results in improved
customer satisfaction.
The above points justify for not choosing EDD as the best sequencing rule to be adopted.

LPT RULE: B – C – D – A

▪ The average completion time for LPT is 46.25 days, which is higher when compared with SPT
and other rules. Hence has poor avg. job completion time.
▪ The utilization metric for LPT is 32% and is lesser when compared with SPT. From this, we can
understand that LPT has a poor resource utilization metric.
▪ The average number of jobs in system for LPT is 3.08, means that approximately 3 jobs are in
queue to be completed. Lower the waiting time of jobs in queue, improves the overall
turnaround time, thereby making this a critical factor that needs to be considered.
▪ The average lateness for LPT is 18.75 days which is higher than SPT. Lesser the average lateness,
the faster will be the turnaround time for customer, which results in improved customer
satisfaction. Higher average lateness will decrease the customer satisfaction.

The above points justify for not choosing LPT as the best sequencing rule to be adopted.

CR RULE: B – C – D – A

▪ The average completion time for CR is 46.25 days, which is higher when compared with SPT and
other rules. Hence has poor avg. job completion time.
 ▪ The utilization metric for CR is 32% and is lesser when compared with SPT. From this, we can
understand that CR has a poor resource utilization metric.
▪ The average number of jobs in system for CR is 3.08, means that approximately 3 jobs are in
queue to be completed. Lower the waiting time of jobs in queue, improves the overall
turnaround time, thereby making this a critical factor that needs to be considered.
▪ The average lateness for CR is 18.75 days which is higher than SPT. Lesser the average lateness,
the faster will be the turnaround time for customer, which results in improved customer
satisfaction. Higher average lateness will decrease the customer satisfaction.

The above points justify for not choosing CR as the best sequencing rule to be adopted.

QUESTION 2
Titan produces from their manufacturing units two brands of watches – Sonata and Nebula. Sonata is
targeted for a mass market while Nebula is targeted at a premium segment.

An insight of Titan Sonata and Nebula

Sonata Nebula

With the widest assortment of contemporary
and timeless designs, Sonata, India's largest
selling watch brand is etched in the hearts of
every Indian. With an eye for aesthetics and
through relentless innovation and sheer
passion, we’ve created more than 700 watch
designs that are available across 8,000+
authorized watch outlets and the exclusive
World of Titan stores.
Nebula is an exclusive collection of 18k solid
gold jewellery watches from Titan Company
Ltd. and India's first solid gold watch brand,
which is available at a price band of Rs.29,000
to Rs.6.25 lakhs. With over 100 models for
men and women crafted in 18k and 22k gold,
the elegant watches are a blend of the rich
heritage of Indian jewellery and the fine
craftsmanship of watch making.

Perfectly combining style and functionality,
Sonata offers a watch for every wrist and
occasion, continuing to evoke pride and
confidence in the customers.
The Nebula collection comprises a variety of
exquisite watches in 18k and 22k gold, both
plain as well as embellished with pearls and
diamonds. The Nebula range is available in
kada and bracelet styles for women, besides
the classic leather strap style.

The above comparison is taken from the brands official page and the statements clearly differentiates the
target segments. While “Sonata” is a brand for common man, Nebula is exclusively targeting the rich/the
upper segments.
2(a). Should Titan produce & manage both brands with the same operational supply chains?
Why?

Supply chain is a system of Organizations, People, Activities, Information and Resources involved in
supplying a product or service to a customer.

From the above comparison, it is evident that both the products (Sonata & Nebula) have different target
segments and would require different raw materials, Quality inspections, Security aspects, Packing and
different logistics mechanisms and different pricing. These clear differentiators help to conclude that
Titan should not have the same operational supply chains for Sonata and Nebula.

But in real-time it may not be possible to completely have 2 different supply chain operations for the same
Brand “Titan-Watches”.

Typical Supply Chain network for Watch Industry

Customer Order - The customer can place orders directly through the website or ecommerce platforms
like Amazon, Flipkart etc. Also, they can buy watches from shops or company outlets. From both the
channels, the orders get placed at the Production Facility.
Production Facility and Procurement – Titan source variety of materials and services such as precious
metals, pre-alloys, tools, consumables including chemicals, packaging materials, logistics and outsource
activities for the manufacturing of plain and studded jewellery that includes Kundan, Polki, CZ jewellery,
Cast route products, Light weight jewellery, Fashion jewellery, etc for the jewellery manufacturing
operations. The vendors are spread across the country who supplies the raw materials to the Production
facility. The finished goods will be either shipped directly or moved to specific storage locations from
where it gets shipped to customers or distributor networks.

The raw materials used for Sonata and Nebula are different hence needs to be procured from
same/different vendors through different operational channels. Nebula being manufactured with Gold,
Diamonds, Precious Stones would require a different treatment for production, packing, picking, storage,
and delivery when compared to Sonata.

2(b). Should they share the manufacturing facilities, production process, and quality assurance
systems?

Like Tata Foods & Beverages which is manufactured under the same production facilities, Titan watches
can also get produced under the same roof. Provided, there are clear differentiators as shown above.
Let’s discuss the key differentiators in detail.

Sonata Nebula

Product Normal Watch Premium Watch

Target Segment Common-Man Premium/High-income levels

 Raw Materials Leather, Steel etc Gold, Diamond, Pearl etc

Vendor Supplies the raw materials for Supplies the raw materials for
manufacturing Sonata manufacturing Nebula

Sub-Contracting May not be required Can Sub-Contract certain items

like gold/diamond dials, user
specific customizations etc

Skills Normal skills for manufacturing Specialized skillset for

the watch manufacturing Nebula

Quality Inspection Should be tested based on Should be tested based on

different criteria’s different criteria’s

Packaging Regular Packaging and normal Special/Privileged packing and

handling careful handling

Production Facility & Demand
High demand segment and Less demand segment and being
would require maximum premium (Segment & Raw
production capacity utilization & Materials) requires a different
process production capacity utilization &
process

Transportation Regular logistics Special logistic arrangements

required due to product
value/items used

2(c). Should the packaging, warehousing, transportation, customer relationship management be

different for both? Support your answers with reasons.

As highlighted in the above 2 answers, Sonata and Nebula are two different products which has
differentiated targets.
As stated in the Titan website, “Sonata offers a watch for every wrist and occasion”. Sonata is for the
common man and the regular income level segments. Being a product for the common man, there
should be mass production capabilities and is highly customizable as per customer needs. Sonata can be
customized specifically based on gender, color, materials (Leather, Bimetal, Metal, PU, Plastic, Stainless
Steel), functions (Analog, Analog with date, Analog with day & date, Smart, Multifunction), Collections
(CSK, Elite, NXT etc), Movement (Quartz). The general market trend is known (Historical Data) and
accordingly can be produced in mass and stored in their warehouses (Upstream or Downstream
locations). Company can provide attractive offers, discounts to boost the sales especially during the
festival seasons. The packing can be made attractive with differentiated colors but can still have the
regular packing materials. Transportation can be managed through Titan’s regular logistics arrangements
or can be done through delivery partners (BlueDart, DTDC, Amazon etc).

The Nebula collection comprises a variety of exquisite watches in 18k and 22k gold, both plain as well
as embellished with pearls and diamonds. The Nebula range is available in kada and bracelet styles for
women, besides the classic leather strap style. This is a premium product for the high-income level
market. Nebula completely differs from Sonata with respect to the raw materials used like Gold, Diamond,
Special Stones etc. Due to the high price, Handling of Special stones, gold etc cannot be like that of Sonata
raw materials. This would require special care and handling including the security, purity of metals,
skilled resources for production etc. Premium packing will be required to attract the premium segments
and to ensure the safety, avoid any damages during transportation etc. Like other premium brands, the
Nebula can be shipped inside a Wooden or Steel boxes with attractive designs. The same warehouse
facility can be used if they have special zones for storing premium items. There should be dedicated
transportation/logistic mechanisms (Insured) to ensure safety and on-time delivery of the product. The
upper customer segment would expect premium treatments in packing, delivery, user experience etc.

The customer relationship management (CRM) for Sonata and Nebula can remain the same as they are
trained/experts in handling all segments of customers. Irrespective of the products, the customer
satisfaction, experience, support should be the best in class as this impacts the Titan company as a whole
and not just the product.