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Term Paper On Production and Operation Management
Term Paper On Production and Operation Management
TERM PAPER
on
Operation Management: A Case Study of JamunaGroup
Submitted By Submitted To
Description Pages
Table of Contents 2
CHAPTER - ONE 3
Introduction 3
Company overview 14
CHAPTER – THREE 15
CHAPTER – FOUR 25
Why 25
Success rate 26-28
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CHAPTER - ONE
INTRODUCTION
Production/operations management is the process, which combines and transforms various resources
used in the production/operations subsystem of the organization into value-added products/services in
a controlled manner as per the policies of the organization. Therefore, it is that part of an organization,
which is concerned with the transformation of a range of inputs into the required (products/services)
having the requisite quality level. The set of interrelated management activities, which are involved in
manufacturing certain products, is called production management. If the same concept is extended to
services management, then the corresponding set of management activities is called operations
management.
Operations management (OM) is the business function that plans, organizes, coordinates, and
controls the resources needed to produce a company’s goods and services. Operations management is
a management function. It involves managing people, equipment, technology, information, and many
other resources. Operations management is the central core function of every company. This is true
whether the company is large or small, provides a physical good or a service, is for-profit or not-for-
profit. Every company has an operations management function. Actually, all the other organizational
functions are there primarily to support the operations function. Without operations, there would be
no goods or services to sell. Consider a retailer such as The Gap, which sells casual apparel. The
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marketing function provides promotions for the merchandise, and the finance function provides the
needed capital. It is the operations function, however, that plans and coordinates all the resources
needed to design, produce, and deliver the merchandise to the various retail locations. Without
operations, there would be no goods or services to sell to customers.
Planning: Operations managers must constantly forecast, plan, and adjust to optimize
processes based on conditions.
Process: Production of goods or services requires having strong, repeatable processes.
Efficiency: Managers must troubleshoot bottlenecks, inadequate resources, and downtimes to
create optimal efficiency.
Cost Control: Production is typically a major part of a company’s cost structure, and must
manage it wisely.
Quality: Good quality control is necessary to maintain customer satisfaction and the
company’s reputation. Companies can greatly suffer without it.
Continuous Improvement: To remain competitive, companies need to have processes in
place to consistently seek better ways of doing things.
Technology: Underlying all of these foundations is technology. Well-used technology keeps a
company ahead of the curve.
Profitability: Executed properly, all of the above foundations lead to a strong bottom line.
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The role of operations management is to transform a company’s inputs into finished goods or
services. Inputs include human resources (such as workers and managers), facilities and processes
(such as buildings and equipment), as well as materials, technology, and information. Outputs are the
goods and services a company produces. Figure 1.2 shows this transformation process. At a factory,
the transformation is the physical change of raw materials into products, such as transforming leather
and rubber into sneakers, denim into jeans, or plastic into toys. At an airline, it is the efficient
movement of passengers and their luggage from one location to another. At a hospital, it is organizing
resources such as doctors, medical procedures, and medications to transform sick people into healthy
ones.
Operations management is responsible for orchestrating all the resources needed to produce the final
product. This includes designing the product; deciding what resources are needed; arranging
schedules, equipment, and facilities; managing inventory; controlling quality; designing the jobs to
make the product; and designing work methods. Basically,
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FIGURE 1.1
Organizational chart
showing the three
major business
functions Marketing Operations Finance
V.P. of Finance
Manages: customer Manages: people, Manages: cash flow,
demands equipment, current assets,
Generates: sales for technology, and capital
goods and materials, and investments
services information
To produce: goods
and/or
FIGURE 1.2
The transformation process
Inputs
Human
The
Facilities
& Processes Goods
Process
Technologies
Materials
Performance Information
operations management is responsible for all aspects of the process of transforming inputs into
outputs. Customer feedback and performance information are used to continually adjust the inputs,
the transformation process, and the characteristics of the outputs. As shown in Figure 1.2, this
transformation process is dynamic to adapt to changes in the environment.
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The Importance of Operations Management
Effective operations management also helps with employee engagement and defines the roles and
responsibilities within an organization. No matter what obstacle an organization faces, a strategic
operations management plan in place will ensure that employees’ workflow and company production
remain unaffected.
A smooth operations management process has many benefits for an organization, including:
Product/service quality
How do you ensure that your product/service is of the best quality? Having a checklist that meets the
objectives and goals of the company as well as meeting the customer’s needs. The operations manager
will have a setlist of processes and a checklist to determine that everything is in order during the pre-
production process. This includes making sure that everyone is aware of what the product/service
needs and informing everyone of the product/service objectives. Once the final product has been
created, the operations manager will assess to ensure it meets the organization goals and that the
customer’s needs are met. Thereafter, the operations manager will review the pre-production process
to ensure efficiency for the next creation.
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Customer satisfaction
A customer review can make or break a business. If a negative word spreads, it could be a challenge
to retain clients. This is why it’s important to ensure that your customers’ needs are at the forefront of
your product or service. The operations manager will conduct a quality management process a
methodology uses to create a product/service that will meet the customers’ needs. If the organization
is a service provider, the customer is the lifeblood. The operations manager will have processes in
place to make sure that the service quality is the best. A returning customer means more for the
bottom line.
The elements used to help gain a satisfactory customer includes:
Quality management:
To ensure the organization maintains a consistent and good service.
Employee capacity:
Making sure the right people are in the right roles, which helps produce a good product/service.
Planning:
To make sure that there is no lapse in production and that goods/services are on time.
With these four elements in mind, the operations manager can meet the customers’ needs.
Revenue Increase
An organization will have a good reputation thanks to great product/service quality and customer
satisfaction. This leads to increased revenue from a new customer base. The revenue growth could
help with the launch of new and innovative products/services or an increase in resources and
technology.
Competitive advantage
An effective operations management plan also means a business could be ahead of its competition If
internal and external factors are managed well within an organization, it could mean a good standing
within the market.
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Compliance
There are certain rules and regulations an organization needs to adhere to. The operations manager
will have certain controls in place to avoid fines and to make sure the organization is running in a
lawful manner.
Motivated employees
Overall, the operations manager ensures that employees know the roles within a company. This is
important because often, employees feel left out and demotivated if they feel they’re not contributing
in a meaningful way. An operations manager helps define these roles to ensure that production is
maximized and efficient.
Enhance Goodwill:
Operation management helps in improving the goodwill and presence of the organization.
It ensures that quality products are delivered to all customers that could provide them
better satisfaction and makes them happy.
Motivates Employees:
Operation management helps in motivating the employees towards their roles. Operation
managers guide all people in performing their roles and provide them with a better
atmosphere. Employees are remunerated and rewarded according to their performance
level.
Understanding the values and nature of an operations manager could help you become a good
manager. The skills you learn could be applied across all industries and you will likely be valuable
within your organization.
with online learning, there is no interruption to your workday and you’ll learn in an environment
comfortable to you. Studying an operations management course online could help you gain an
effective management strategy that will benefit your organization.
The business did not always recognize the importance of operations management. In fact, following
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World War II the marketing and finance functions were predominant in American corporations. The
United States had just emerged from the war as the undisputed global manufacturing leader due in
large part to efficient operations. At the same time, Japan and Europe were in ruins, their businesses
and factories destroyed. U.S. companies had these markets to themselves, and so the post–World War
II period of the 1950s and 1960s represented the golden era for U.S. business. The primary
opportunities were in the areas of marketing, to develop the large potential markets for new products,
and in finance, to support the growth. Since there were no significant competitors, the operations
function became of secondary importance, because companies could sell what they produced. Even
the distinguished economist John Kenneth Galbraith observed, ―The production problem has been
solved.‖ Then in the 1970s and 1980s, things changed. American companies experienced large
declines in productivity growth, and international competition began to be a challenge in many
markets. In some markets such as the auto industry, American corporations were being pushed out. It
appeared that U.S. firms had become lax due to the lack of competition in the 1950s and 1960s. They
had forgotten about improving their methods and processes. In the meantime, foreign firms were
rebuilding their facilities and designing new production methods. By the time foreign firms had
recovered, many U.S. firms found themselves unable to compete. To regain their competitiveness.
companies turned to operations management, a function they had overlooked and almost forgotten
about. The new focus on operations and competitiveness has been responsible for the recovery of
many corporations, and U.S. businesses experienced a resurgence in the 1980s and 1990s. Operations
became the core function of organizational competitiveness. Although U.S. firms have rebounded,
they are fully aware of continued global competition, scarcity of resources, and increased financial
pressure. Companies have learned that to achieve the long-run success they must place much
importance on their operations
Automation Efficiency
Automation has been a long-discussed topic within manufacturing. As automation continues to
develop rather quickly, we can easily see an increase in profitability and productivity as these
technologies are implemented into production lines. This has become a hot topic again as the future
has become uncertain and robots and automation do not require human intervention.
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A software that can aid with demand responsiveness and help operations managers with their facility
is Planet Together’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and
Scheduling (APSS Software is a must for manufacturing facilities that are seeking to take their
production to the next level and ultimately enhance efficiency within their overall operation.
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CHAPTER – TWO
COMPANY OVERVIEW
As an evolving private company that has continually grown within the competitive industry in Bangladesh, Jamuna
Group possesses high values, but the most crucial value of the company is its human resource and the Managing
Director, Mr Md. Nurul Islam. The name, Jamuna group is inseparably associated with the name of Mr Md. Nurul
Islam, an architect a pioneer ultimately an Industrial leader in the private sector. He heralded the Jamunas
appearance in the arena of the private industrial sector in 1974 with the mission and vision of building newly
independent Bangladesh as a happy and prosperous country. Jamuna started its journey with Jamuna Electric
Manufacturing Co. Ltd in 1974 and it pioneered the manufacturing of electrical accessories and fittings in
Bangladesh since 1975. Thereafter JGI flourished as a giant conglomerate as shown in the chronology.
To maintain its competitiveness in today's globalized modern market, Jamuna introduced the best technology along
with machinery and expertise in Bangladesh. Jamuna developed and expanded its enterprises of multi-dimension
for diversifying its product range. In 34 years of operation, Jamuna Group expanded into a giant dynasty of 24 large
scale enterprises.
From textile to real estate Jamuna Group has diverse business interests. Over the thirty-four years of operation, the
Group has ventured into electrical, engineering, chemical, leather, garments and textiles- including spinning,
knitting and dyeing, cosmetics, toiletries, beverages, real estate, housing, print and electronic media sectors.
Jamuna has strong goodwill for its products and operation in both local and global markets. It is imperative to point
out that Jamuna has built up a new World of textile with the best technology and machinery imported from
Germany, Switzerland, the USA, Japan, India, Italy etc. for producing the best quality products for the global
market.
Jamuna has diversified its business from manufacturing to the media industry. One of the most significant and
powerful subsidiaries of Jamuna Group is THE DAILY JUGANTOR, which is one of the leading newspapers of
Bangladesh. The Jugantor is the rare achievement of the Group, with the motive to protect human rights and
provide true and fair news to the nation. It has occupied the heart of the common people of Bangladesh by
championing their grievances and upholding their democratic rights pro-people, responsible and transparent
journalism is its inherent philosophy and guiding force for playing the role of the BECON STAR in the world of the
print media.
Jamuna group is also involved in real estate development and one of the biggest projects it has undertaken is The
Future Park. The project is located at Baridhara, Dhaka on 33 acres of land. The Future park is emerging as a centre
of excellence for a premier cluster of large scale enterprises like the most lucrative and aesthetic biggest shopping
mall cum commercial complex in Asia, a modern television building (centre) a modern 500 beds Hospital, a Five
Star Hotel etc in the same premises.
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CHAPTER - THREE
The practice of Operation management
The unit of production method is a method of calculating the depreciation of the value of an asset over
time. It becomes useful when an asset's value is more closely related to the number of units it
produces rather than the number of years it is in use. This method often results in
greater deductions being taken for depreciation in years when the asset is heavily used, which can
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then offset periods when the equipment experiences less use.
DE= (Original Value − Salvage Value) / Estimated Production Capability ×U
where:
DE=Depreciation Expense
U=Units per year
This type of production is most commonly observed when we produce one single unit of a product. A
typical example of the same will be tailored outfits which are made just for a cake which is made just
like we want it.
It is one of the types of products most commonly used in consumer durables, FMCG or other such
industries where there are a large variety of products with variable demands. Batch production takes
place in batches. The manufacturer already knows the number of units he needs to a manufacturer and
they are manufactured in one batch.
So, if a manufacturer has a shortage of Product X and 100 units of this product is consumed in one
month, then the manufacturer can give orders for batch production of 100 units of Product X.
First, one type of mixer will be manufactured completely and then the second type will be
manufactured. They are manufactured based on demand. Depending on demand, the batch production
can produce the number of units required in one batch
The batches may be as small as 10 units or they may be as large as 1 lakh units of the same products.
However, as long as there is a defined quantity of product that has to be manufactured before moving
on to the next item in the list, it is known as batch production. Examples of batch production include
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FMCG like Biscuits, confectionaries, packaged food items etc. It is used in Medicines, Hardware,
Consumer durables and many such industries.
An Assembly line or mass-production plant typically focus on specialization. There are multiple
workstations installed and the assembly line goes through all the workstations turn by turn. The work
is done in a specialized manner and each workstation is responsible for one single type of work. As a
result, these workstations are very efficient and production due to which the whole assembly line
becomes productive and efficient.
Products that are manufactured using mass production are very standardized. High sophistication is
used in the manufacturing of these products. If 1000 products are manufactured using mass
production, each one of them should be the same. There should be no deviation in the product
manufactured.
Mass production is generally used to dole out huge volumes of the product
It is used only if the product is standardized
Demand does not play a major role in Mass production. However, production capacity determines the success of
mass production.
Mass production requires huge initial investment and the working capital demand is huge too.
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hours, all days in a year.
A good example of Continuous production is brewing. In brewing, the production goes on 24 hours a
day and 365 days a year. This is because brewing takes a lot of time and production is important. As a
result, there is a continuous input of raw materials such as malt or water, and there is continuous
output in the form of beer or other alcoholic drinks. The key factor in this is that the brewing and
fermentation process itself is time-consuming, and the maximum time is spent in the fermentation
which is a continuous process.
There are many chemicals that are manufactured in the form of a continuous process due to the huge
demand across the world. Similarly, the Plastic industry is known to adopt the continuous production
methodology where production can go continuously for weeks or months depending on the demand.
Once the production starts, you only need to feed in the raw material, and the machines turn out the
finalized products.
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Figure: Paper Industry Figure: Oil Refinery Plant
Figure: Continuous production process of paper, oil refinery & fertilizer industry.
There are also advantages to trade agreements. Agreements between the United States and other
countries that make trade free, lower tariffs, or otherwise reduce costs may be less visible to the
general public, shareholders, and other stakeholders, but are something of which operations managers
need to be aware.
Strategy is the organization's plan of action to achieve the mission. Every functional area has its
strategy on how to do its part to help the entire organization achieve its mission. Such strategies
consider strengths, weaknesses, threats, and opportunities and how to best take advantage of them, or
conversely, minimize them. Taken as a whole, the contributions of the functional area strategies
support the mission and the success of the organization.
Strategy is the organization's plan of action to achieve the mission. Every functional area has its
strategy on how to do its part to help the entire organization achieve its mission. Such strategies
consider strengths, weaknesses, threats, and opportunities and how to best take advantage of them, or
conversely, minimize them. Taken as a whole, the contributions of the functional area strategies
support the mission and the success of the organization.
Strategy is the organization's plan of action to achieve the mission. Every functional area has its
strategy on how to do its part to help the entire organization achieve its mission. Such strategies
consider strengths, weaknesses, threats, and opportunities and how to best take advantage of them, or
conversely, minimize them. Taken as a whole, the contributions of the functional area strategies
support the mission and the success of the organization.
Strategic OM Decisions
These three concepts come into play as operations managers make good decisions in the seven major
functional areas of operations management, otherwise known as operations decisions.
Product and Service Management. What good or service do we offer and what is the design of
it?
Operations and Supply Chain Management. Should we make or buy what we need to produce
Management of Quality. What quality system should we use? What impact does quality have on
our organization?
Facilities Planning and Management. How is the facility used in production? What is its
When sound operations management decisions are made, it shows that the strategies were
effective, and the organization's mission can be me
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CHAPTER – FOUR
Findings and Discussion
Standardization,
Higher production rate
Increased worker safety
Economies of scale
Increased productivity
Reduced Labour cost
Lower cost
Higher quality of life
Faster production
Simple control process
High accuracy
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The success rate of JamunaGroup
DSE: BPML Past Revenue Cash Flow and Net Income Data (BDT Millions)
Date Revenue Net Income* G+A Expenses R&D Expenses
31/03/2021 8,404.78 311.33 589.89 -
31/12/2020 8,216.47 260.99 531.65 -
30/09/2020 7,972.67 220.33 544.57 -
30/06/2020 8,544.46 285.84 579.88 -
31/03/2020 9,428.79 199.45 539 -
31/12/2019 9,995.1 249.83 610.07 -
30/09/2019 10,625.01 229.27 618.96 -
30/06/2019 11,039.13 291.85 647.03 -
31/03/2019 10,792.39 639.27 701.43 -
31/12/2018 10,894.6 711.3 666.97 -
30/09/2018 10,660.77 766.69 677.46 -
30/06/2018 10,821.1 693.64 614.28 -
30/09/2017 10,683.28 408.32 460.49 -
30/06/2017 10,004.08 385.13 420.03 -
30/06/2016 11,385.47 633.16 433.86 -
31/03/2016 10,753.54 337.46 438.25 -
31/12/2015 10,435.76 264.67 441.16 -
31/12/2014 10,335.09 218.12 448.87
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Figure: Revenue Chart (the Year 2014 -2021
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Figure: Equity History and Analysis Chart (the Year 2014 -2021)
3. Bitumen Project:
JamunaGroup set up the first bitumen plant in Bangladesh. This is the JamunaGroup set up the first
bitumen plant in Bangladesh. This is the bitumen plant in Bangladesh. It went into commercial
production in January 2020. Has been doing business successfully from the beginning of production
till now.
4. JamunaFood & Beverage project:
Jamunafood & Beverage has been doing business very successfully as the quality is good.
Jamunacement, oil & gas and dog Yard are also doing business successfully.
At the end of the discussion, it can be said that JamunaGroup has been managing each of its projects
very successfully. Therefore, it can be said that the success rate of JamunaGroup is about 88% - 94%
(the Year 2019- 2020).
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