Operations & Supply Chain

Management

Assessment-1

Prepared By: Group 10, PGPM A Batch 2021

Ardly Melba Reena B

Sarita Majhi
Raghavendran T
Sujith S Menon
Wishways Srinivas
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.
1(a). Compute and analyze the set of critical performance metrics for each scheduling process.
1(b). Identify the best priority rule. Support your answer with justifications.
1(c). Comment on the outcomes from other than the best priority rules.

Answer 1:
1(a) Compute and analyze the set of critical performance metrics for each
scheduling process.

Formulae used in arriving at these metrices are as follows:

Average job completion time = Total flow time / Total jobs
Average utilization factor = Total job processing time / Total flow time
Average quantity of jobs in system = Total flow time / Total job processing time
Average job lateness duration = Total late days / Total jobs

SHORTEST PROCESSING TIME (SPT) – A-D-C-B

Job Job Processing Job
Sequence Time Flow Time Job Due Time Lateness
A 5 5 20 -15
D 10 15 25 -10
C 20 35 40 -5
B 25 60 35 25
  60 115 120 25
   
Average completion time 28.75 days  
Utilization metric 52.17%
Average number of jobs in the system 1.92 jobs  
Average job lateness 6.25 days  

EARLIEST DUE DATE (EDD) – A-D-B-C

Job Job Processing Job Due
Sequence Time Flow Time Time Job Lateness
A 5 5 20 -15
D 10 15 25 -10
B 25 40 35 5
C 20 60 40 20
  60 120 120 25
   
Average completion time 30  
Utilization metric 50%  
Average number of jobs in the system 2 jobs  
Average job lateness   6.25 days  

LONGEST PROCESSING TIME (LPT)-B-C-D-A

Job Job Processing Job Due
Sequence Time Flow Time Time Job Lateness
B 25 25 35 -10
C 20 45 40 5
D 10 55 25 30
A 5 60 20 40
60 185 120 75

Average completion time 46.25 days

Utilization metric 32.43%
Average number of jobs in the system 3.08 jobs
Average job lateness 18.75 days

CRITICAL RATIO (CR) - B-C-D-A

Job Processing Flow Job Due
Job Sequence Job Lateness
Time Time Time
B 25 25 35 -10
C 20 45 40 5
D 10 55 25 30
A 5 60 20 40
60 185 120 75

Average completion time 46.25 days

Utilization metric 32.43%
Average number of jobs in the system 3.08 jobs
Average job lateness 18.75 days
1(b). Identify the best priority rule. Support your answer with justifications.

Summary
Avg Compl. Utilization Avg no of Avg Job
Rule Sequencing
Time metric jobs in sys Lateness
FCF
A-B-C-D 36.25 41.37931034 2.416666667 11.25
S
SPT A-D-C-B 28.75 52.17391304 1.916666667 6.25
EDD A-D-B-C 30 50 2 6.25
LPT B-C-D-A 46.25 32.43243243 3.083333333 18.75
CR B-C-D-A 46.25 32.43243243 3.083333333 18.75

Conclusion:
Shortest Processing Time (SPT) is most feasible to adopt for scheduling process.
Best priority rule should have lowest average completion time, highest average utilization factor,
average no.of lowest jobs in system and less average delay. From the summary gird, Shortest
Processing Time (SPT) Rule has lowest average completion time - 28.75; highest average utilization
factor - 52.17; average no.of jobs in system - 1.91; average delay - 6.25. Average delay is same for
SPT and EDD but other metrics of SPT is better. Out of the four jobs, three jobs are processed
within the deadline whereas only job B is delayed which clearly states that when processing the
shortest processing time jobs first the metrics are relatively good when compared to other priority
rules EDD, LPT, and CR.

1(c). Comment on the outcomes from other than the best priority rules.

EDD:
Earliest Due Date processes jobs in increasing order of their due dates resulting in a total delay of
25hours with average job lateness of 6.25hours. EDD is very close to SPT but not feasible to deal
with earliest as this rule will delay other jobs. In EDD, the job B is delayed by 5 hours and job C is
delayed by 20 hours whereas in SPT, only one job B is delayed by 25 hours and other jobs are
completed within the deadline. The other metrics like utilization metric and average completion
time is slightly higher than SPT. But EDD outperforms other priority rules, LPT and CR

LPT:
Longest Processing Time(LPT) processes the job with higher processing time and that leads to a
total delay of 75hours with average job lateness of 18.75hours. It is not feasible to process the
longest processing time job first as it will affect the other job’s deadlines. Only the job B is
processed within the delay resulting a delay in jobs C, D, A with a delay of 5, 30, 40 hours
respectively. Due to this all the metrics are severely affected.
CR:
Critical Ratio is an index number computed by dividing the time remaining until due date by the
work time remaining. There is a total delay of 75hours with average job lateness of 18.75hours.
Owing to the high metrics this rule also is not feasible. Similar to LPT, three jobs are delayed and
job B alone is processed within the deadline.

Question 2

2(a). Should Titan produce & manage both brands with the same operational
supply chains? Why?

Answer 2(a)

Core of any business is “Operations”, which caters to Physical transformation

activity(Manufacturing) ie, conversion of Raw material to Tangible Revenue generating products.
While certain aspects of the Supply chain operations can be leveraged across brands to improve
operational excellence, better utilization of capital investments of Machinery and Facility.
At same time the completely different target segmentation and pricing demand various other
aspects of time supply chain to be unique proposition to customers who need to feel the Value for
money.
Eg: for Nebula’s price point, it would demand exclusive stores, premium packaging, special
logistics to ensure safety of high value watches.

An Overview of Titan Sonata and Nebula.

Sonata: India’s largest selling watch brand, Sonata offers a wide range of styles at a great value.
 With an eye for aesthetics and through relentless innovation created more than 700 watch
designs that are available across 8,000+ authorized watch outlets and the exclusive World
of Titan stores.
 Perfectly combining style and functionality,
 Sonata offers a watch for every wrist and occasion, continuing to give pride and
confidence in the customers.

Nebula: Nebula, crafted in solid 18 Karat gold, is the most prestigious collection under the Titan
umbrella which celebrates Indian grandeur across its collections.
 India's first solid gold watch brand, which is available at a price band of Rs.29,000 to
Rs.6.25 lakhs.
 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 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.
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,
Packaging 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?

Answer 2(b)
Yes, Titan as both the sub brands have seen a double digit growth in the last year, Titan
should make sure each and every product rolled out should be double checked and offers the best
quality to its buyers. The manufacturing facilities and production process can be shared but the
quality assurance systems including customer service should be different because for a
premium brand the quality produced should be top notch.
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.

Facility Layout for Sonata would be Product Layout- which is more of repetitive and focus on bulk
volume production, whereas Nebula will be Process Layout which is non-repetitive(batch type)
and low volume and high mix production.

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 forSupplies 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 the watch Specialized skillset for
manufacturing Nebula
Quality Inspection Generic Inspection to meet spec High value watch demands niche
finish and customer satisfaction.
Quality needs to be utmost
importance to retain premium
customers

Packaging Regular Packaging and normal handling Special/Privileged packing and

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

Answer 2(c)

Everything except the customer relation management systems can be similar for both the sub
brands.

Packaging:
Though the supplier can be consolidated from operation cost efficiency, Quality of packaging
should be different for both the sub brands and hence ensuring best packaging is provided for
Nebula, because premium product would need premium packaging to ensure customer
sentiments and value perception is intact from order booking until delivery to the end customer.

Warehousing:
Both the sub brands can share a common warehouse where both of them are stored differently to
avoid confusion. Nebula watched being premium can employ highest security standards within
same warehouse facility.

Transportation:
Both the sub brands can share a common transportation channel to avoid extra costs in terms of
logistics and man power. This would leverage multiple orders being consolidated based on the
end customer location.

Customer relationship management:

Here both the units should be different as customers might look for a better after sales service
when they pay a premium price for a product. Also Nebula’s target high-income customers
would need better handling as the brand sentiments are very thin and requires zero fault
tolerance to maintain the brand loyalty.
Conclusion:

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).

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.
References:
Management Discussion and Analysis, Tata Company Limited

Operations & Supply Chain Management